Eldorado gets Chinese gold mining permit (March 19, 2007)

Vancouver — Eldorado Gold (eld-t, ego-x) recently became the first North American gold producer to be granted a Chinese mining certificate, allowing its Tanjianshan mine to advance to “official” production.

The open-pit mine, in China’s Qinghai province, actually began commercial production on Feb. 1st and recorded gold output of 12,518 oz. in January during its startup phase. Tanjianshan is expected to produce about 125,000 oz. gold in 2007 at a cash cost of US$240 per oz.

The deposit hosts proven and probable reserves of 8.5 million tonnes grading 4.1 grams gold per tonne for about 1.1 million contained ounces. Its mine life is projected at eight years.

Eldorado owns 90% of the mine, with Dachaidan Mining and the First Brigade for Geology and Mineral Exploration of Qinghai province holding the remainder.

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