Message #7 From:
NewsBot Date: April 12, 2008 08:20:18 PM
Eldorado Gold Corporation: First Quarter 2008 Operating Results
(all figures in United States dollars, unless otherwise noted)
Record monthly gold revenue from Kisladag
Paul N. Wright, President & Chief Executive Officer of Eldorado
Gold Corporation ("Eldorado", the "Company", or "we") (TSX: ELD)(AMEX:
EGO) is pleased to provide the following update on the Company's first
quarter 2008 operating results.
Kisladag Mine
The Kisladag Mine reopened on March 6, 2008. Production for the
month of March was 27,228 ounces of gold at a cash operating cost of
$219 per ounce. We are pleased to report that we have experienced sales
for the month of March of 23,129 ounces of gold generating record
revenue of $22.3 million at an average gold price of $965 per ounce.
The gold production was refined at the Istanbul Gold Refinery and sold
on the Istanbul Gold Exchange.
The mine operation has attained the full designated excavation rate
and we expect the crushing circuit to reach the full production rate of
10.0 million tons per year in the second quarter of 2008. Gold
adsorption rates are increasing and are currently at approximately 350
ounces a day.
"We are extremely pleased with the professional manner in which our
management and employees at Kisladag have executed a rapid and safe
restart of the Kisladag mine," commented Paul N. Wright President and
Chief Executive Officer.
Tanjianshan Mine
We are equally pleased with the exceptional performance of the
Tanjianshan mine. In the first quarter 2008 Tanjianshan produced 40,005
ounces of gold at a cash operating cost of $229 per ounce. Gold sales
for the quarter totaled 50,475 ounces of gold generating revenue of
$46.0 million at an average gold price $912 per ounce. Compared to the
fourth quarter 2007 strip ratio of 7.3:1, the first quarter 2008 was
characterized by a lower strip ratio of 3.1:1 which, combined with a
milled ore grade of 6.84 g/t gold contributed to strong production and
lower costs.
Construction of the roaster and supporting facilities is progressing
on schedule and budget with planned completion in the third quarter and
start up forecasted for the fourth quarter 2008.
The Company believes that production levels for our two mines in the
first quarter support our present guidance for 2008 of 300,000 ounces
of gold at a cash operating cost of approximately $240 per ounce.
Vila Nova Iron Ore Project
In the first quarter 2008 we signed a Memorandum of Understanding
for a three-year period to sell all of our production of lump iron ore
and sinter fines to BHP Billiton. The first deliveries are expected to
begin in the first quarter 2009 (see news release of March 17, 2008 for
more details). Construction has commenced and a significant portion of
the plant equipment has been ordered.
Paul N. Wright, President and Chief Executive Officer
Certain of the statements made herein may contain forward-looking
statements or information within the meaning of the United States
Private Securities Litigation Reform Act of 1995, and forward looking
statements or information within the meaning of the Securities Act
(Ontario) . Such forward looking statements or information include, but
are not limited to statements or information with respect to unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company, or industry
results, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Forward-looking statements or information
are subject to a variety of risks and uncertainties, which could cause
actual events, or results to differ from those reflected in the
forward-looking statements or information. Should one or more of these
risks and uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those
described in forward looking statements. Specific reference is made to
"Forward Looking Statements and Risk Factors" in the Company's Annual
Information Form and Form 40-F dated March 31, 2008. Forward-looking
statements herein include statements regarding the expectations and
beliefs of management. Such factors included, amongst others the
following: gold price volatility; impact of any hedging activities,
including margin limits and margin calls; discrepancies between actual
and estimated production, between actual and estimated reserves, and
between actual and estimated metallurgical recoveries; mining
operational risk; regulatory restrictions, including environmental
regulatory restrictions and liability; risks of sovereign investment;
speculative nature of gold exploration; dilution; competition; loss of
key employees; additional funding requirements; and defective title to
mineral claims or property, as well as those factors discussed in the
section entitled "Risk Factors" in the Company's Annual Information
Form and Form 40-F dated March 31, 2008. We do not expect to update
forward-looking statements continually as conditions change and you are
referred to the full discussion of the Company's business contained in
the Company's reports filed with the securities regulatory authorities
in Canada and the U.S.
