Quarterly results keep Eldorado in black

Determined to produce 200,000 oz. gold by the end of the year, Eldorado Gold (ELD-V) has continued to slash cash costs and increase quarterly output.

The company reduced total cash costs to US$260 per oz. in the second quarter, compared with US$309 per oz. in the corresponding period in 1997.

Cash operating costs fell US$28, to $251 per oz.

Meanwhile, gold production between the two periods increased to 50,647 oz.

from 43,525 oz., while the realized gold price per ounce slipped US$9, to US$352.

In eastern Brazil, operators at the company’s Sao Bento mine cut second-quarter cash costs to US$255 per oz., compared with US$291 per oz. a year ago. The savings are attributed to a modernization program.

Production at the mine rose to 28,678 oz. from 26,810 oz. between the two periods. Since startup, more than 10 years ago, Sao Bento has cranked out more than a million ounces.

The mine has a gold resource estimated at 5.2 million tonnes grading 10.93 grams gold per tonne, or 1.8 million contained ounces. Included in the figure is a reserve of 3.3 million tonnes grading 9.02 grams gold per tonne, equivalent to 957,000 contained ounces. The deposit remains open at depth.

Meanwhile, at Eldorado’s La Colorada mine in Mexico’s Sonora state, cash operating costs amounted to US$235 per oz. in the second quarter, compared with US$307 in the year-ago period. Gold production rose to 16,596 oz. from 13,803 oz. between the two quarters.

An exploration program at La Colorada is investigating the feasibility of starting up an underground operation near the Gran Central pit.

In neighboring Sinaloa state, the company’s La Trinidad mine reported cash operating costs of US$273 per oz. in the recent quarter, compared with US$192 per oz. a year ago. The increase is attributed to lower grades and tonnage. Production slipped to 5,373 from 8,114 oz.