Vancouver – Initial results from a 26,000-metre drill program designed to probe the expansion potential of its newly-opened Tanjianshan gold mine in China came back with strong results for Eldorado Gold (ELD-T, EGO-X).
The exploration program is focused on an area of known mineralization immediately north of the current pit limit for the Jinlonggou deposit. Seven of the 18 holes assayed to date returned significant mineralization.
Hole 247 hit 10.04 grams gold per tonne over 25.2 metres, including an 8.1-metre section grading 23.42 grams gold. Nearby hole 248 intercepted 9.8 metres of 27.13 grams gold. And drill hole 243 returned 25.58 grams gold over 5.5 metres.
Eldorado moved up 16, or 2.3%, on almost 6 million shares traded to close at $7.10 on July 5th trading.
Eldorado started commercial production at the open-pit Tanjianshan mine in Qinghai province on February 1st and the mine is expected to produce 125,000 oz. gold in 2007 at a cash cost of US$240 per oz.
The Jinlongguo deposit, which is the focus of active mining at Tanjianshan, holds proven and probable reserves of 8.5 million tonnes grading 4.1 grams gold, for roughly 1.1 million contained ounces. Its mine life is projected at eight years.
Eldorado owns 90% of the mine. Dachaidan Mining and the First Brigade for Geology and Mineral Exploration of Qinghai province hold the remaining 10%.
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