Kisladag mine to shut down August 20

Vancouver – More than two weeks after a surprise injunction ordered Eldorado Gold (ELD-T, EGO-X) to shut down its flagship Kisladag gold mine in Turkey, details are slowly emerging around how long it might be before a final decision in the case.

On July 12^th Eldorado was informed that judges involved in a long-standing lawsuit against the company had granted an injunction to halt mining at Kisladag until the case came to court. Official notification of the injunction came on July 19^th, ordering that the mine be shut down within 30 days. As such the mine is expected to close on August 20^th.

In a news release COO Paul Wright said they expect a decision within two months of the end of the judicial holidays. Turkish courts close for the entire month of August, so the case will likely be heard by the end of October.

The Turkish Ministry of the Environment has not yet provided Eldorado with instructions detailing the form of the closure. Wright said Eldorado is working with the government to ensure the closure is implemented in a fashion that preserves the companys assets and would allow for rapid reopening.

Eldorado opened the Kisladag mine in June 2006 on a temporary permit. A few months ago the company was awarded the full operating permit, based on a review that showed good compliance with projects environmental impact assessment (EIA). But the same EIA is at the centre of a drawn-out lawsuit against Eldorado and the Turkish Ministry of the Environment.

The group that launched the suit charged in an initial court case that Eldorados EIA did not deal sufficiently with issues of water balance and closure plans for the open pit. At the time of the initial lawsuit the group also asked for an injunction to halt mining until the case had been heard. The injunction was denied and, when the case went to court nine months ago, the judge sided with Eldorado.

The group immediately appealed the decision, again requesting an injunction based on a risk of irreparable damage. That the injunction was suddenly granted eight months later, and without any evidence of such damage, came as a complete surprise to Eldorado management.

Eldorado has no means to argue the injunction decision. The company can only wait until the appeal is heard in court. If the appeal judge sides with Eldorado again, the injunction will be lifted and mining can continue.