Eldorado gets green light at Efemukuru, acquires Afcan

The Turkish Ministry of the Environment and Forestry has granted Eldorado Gold (ELD-T) an environmental positive certificate for its Efemukuru gold project in western Turkey.

The company says it expects to receive the remaining permits required for construction during the next 15 months; project engineering will continue during that time.

At last count, Efemukuru was home to proven and probable reserves of 1.9 million tonnes running 13.1 grams gold per tonne, for 784,100 contained ounces. The estimate employs a gold price of US$325 per oz. Measured and indicated resource total 1.8 million tonnes grading 14.4 grams gold, with another 590,300 tonnes of inferred material averaging 12.6 grams.

Gold mineralization is hosted by the 2-km-long Kestane Beleni quartz and quartz-rhodonite vein structure. Previous work indicates that the orebody extends to a depth of 300 metres; it remains open.

Under a prefeasibility study revised in 2000, Efemukuru is envisaged as a 280,000-tonne-per-year mine producing an average 90,000 oz. of gold annually over 12 years. Capital costs for the underground mine are pegged at US$45 million, with operating costs forecast at US$149 per oz. The company is currently considering increasing the annual production rate to around 125,000 oz.

The mine is expected to crank up in by the fourth quarter of 2007.

In other news, Eldorado recently wrapped up its acquisition of Afcan Mining (AFK-T) at an exchange rate of one of its own shares for every 6.5 shares of Afcan. In the end, Eldorado issued just more than 23 million shares. Eldorado also issued one warrant for every 6.5 outstanding Afcan warrants.

Key to the deal was Afcan’s 85% stake in the Tanjianshan project in Qinghai province in western China.

A feasibility study completed by Australian-based RSG Global in April pegged Tanjianshan’s proven and probable reserve at 6 million tonnes averaging 4.9 grams gold per tonne, for about 944,000 contained ounces.

The project is expected to produce 842,000 oz. of gold over eight years. Construction of the open-pit mine is underway, with planned production of 103,000 oz. of gold per year by 2007.

The deposit remains is open along strike and at depth; exploration aimed at increases resources and reserves continues.