Eldorado Gold tables Sayacik drill results

A 4-hole program of reverse-circulation drilling by Eldorado Gold (ELD-T) has returned up to 8.2% copper over 5 metres at the Sayacik target, some 6 km southwest of the advanced Kisladag project in Turkey.

The program tested about 35% of a 3-km-long geophysical and silver-in-soil geochemical anomaly. Holes 1 and 2 tested the north side of the target, and both cut more than 250 metres of argillic-altered rocks containing only elevated silver-lead mineralization.

Holes 3 and 4 tested the western side of the anomaly and yielded only anomalous silver-lead values. However, hole 3 cut a north-northeasterly trending fault structure. It returned 8.2% copper over 5 metres from a down-hole depth of 37.5 metres, followed by 137 metres grading 0.1% copper.

“The results confirm the validity of Sayacik as a target of further exploration,” says Paul Wright, Eldorado’s chief executive officer.

Through its advanced projects in Turkey, Eldorado is trying to become a lower-cost gold producer. The junior recently tabled a positive prefeasibility study for Kisladag, which it owns entirely.

The study proposes a 3.4-million-tonne-per-year operation capable of churning out 103,600 oz. gold per year at a total cash cost of US$154 per oz. Total capital costs are pegged at US$47.4 million.

The study, performed by Kilborn Engineering Pacific in conjunction with Knight Piesold and Micon International, represents the first phase of development for the 6.7-million-oz. resource.

With a baseline environmental study in hand, Eldorado is preparing to begin an environmental impact assessment. This will be submitted to the Ministry of the Environment, which will pass it along to regulators and other ministries. Eldorado hopes to complete the final feasibility study by mid-2002.

Micon calculated a measured and indicated resource of 125.9 million tonnes grading 1.2 grams gold per tonne, or 4.4 million contained ounces. The inferred portion of the resource weighs in at 55.5 million tonnes grading 1.02 grams gold, or 1.8 million contained ounces. Only the measured and indicated resources have been incorporated into the mine design.

Proven reserves are pegged at 6.4 million tonnes grading 1.44 grams gold, or 297,000 oz. Ore in the probable category is set at 33.3 million tonnes grading 1.44 grams gold, or 1.5 million oz.

Eldorado is also evaluating the financial impact of processing concentrates from its nearby Efemcukuru gold project at the Kisladag facilities.

Efemcukuru is a 1.1-million-oz. resource which Eldorado hopes to transform into an 800-tonne-per-day underground operation, using gravity and flotation processing for gold recovery. Cash operating costs are projected at US$149 per oz.