Vancouver With results in hand from the 2005 drill program, Eldorado Gold (ELD-T, EGO-X) has reported increased mineral resources at its 85%-owned Tanjianshan gold project in China’s Qinghai province. The company acquired the advanced project through a merger with Afcan Mining that closed in mid-September of this year.
Tanjianshan now hosts measured and indicated resources of 11.9 million tonnes grading 3.5 grams gold per tonne, or about 1.35 million contained oz., using a 1-gram cutoff grade. Inferred resources stand at 1.7 million tonnes at 4.3 grams.
The previous estimate, released in a technical report earlier this fall, placed measured and indicated resources at 7.2 million tonnes grading 4.4 grams, or about 1.03 million contained oz. Inferred resources were 3 million tonnes at 3 grams.
The updated estimate incorporates 68 diamond-drill holes totaling 9,377 metres completed in 2005, which brings the total amount of drilling to date to 33,136 metres. Eldorado expects to expand the resource base through drilling programs planned for 2006.
Eldorado also intends to update its reserve estimate and operating plan for the mine project, which is slated to begin production in the second half of 2006. A spring feasibility estimated capital costs of US$50.2 million for a mine capable of producing 140,000 oz. gold in its first full year of production, rising to 155,000 oz. by year two.
Eldorado also holds mining and exploration projects in Brazil and Turkey. With the addition of Tanjianshan, the company has set a goal to boost production to 500,000 oz. gold annually by 2008.
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