Eldorado reports gold find

Eldorado (ELD-T) has discovered a new gold zone at the Sao Bento mine in Brazil’s Minas Gerais state.

The Pinta Bem discovery hole returned 0.52 oz. per ton over 8 ft. and 0.47 oz. over 4 ft. Additional drilling is testing continuity on strike and downdip.

Mineralization at Sao Bento exists in banded iron formation, similar to the Lupin gold deposit in Canada’s Northwest Territories. Ore is mined underground by cut-and-fill methods.

The current drill program, spanning 90,000 ft., is attempting to upgrade inferred resources into the category of measured and indicated reserves, while, at the same time, explore for mineralized extensions along strike and at depth.

The mine has geological reserves and resources totalling 4.8 million tons grading 0.34 oz. gold, equivalent to 1.7 million contained ounces. More than 800,000 oz. of this is classified as measured and indicated reserves.

Sao Bento is expected to produce 100,000 oz. gold this year at a cash operating cost of US$325 per oz.

Eldorado hopes to increase production by expanding hoisting and processing plant capacities at the mine. This initiative, already under way, is expected to boost output to 125,000 oz. and lower costs to US$272 per oz. by 1998.

Meanwhile, in Turkey, associated company HRC Development (HDC-V) has 18 properties covering about 320 sq. miles.

At the Sahinli property, in the country’s western region, reconnaissance exploration and drilling has identified a series of shear-hosted quartz veins that carry gold grades of up to 1.45 oz. gold. The average grade and width of gold mineralization is 0.18 oz. across 13 ft.

Results to date indicate that groups of high-grade veins may host a 200,000-500,000-oz. resource, and HRC believes there is potential to expand underground and open-pit gold resources. More drilling is planned.

Elsewhere in Turkey, HRC has received conditional approval to develop its Kaymaz gold deposit.

HRC and Eldorado plan to merge and combine their interests in various mines and exploration and development projects around the world.