Modifications to the Sao Bento mine in eastern Brazil have enabled Eldorado Gold (ELD-V) to reduced overall cash operating costs in the third quarter.
The company’s cash costs were slashed by 18%, to US$255 per oz., during the 3-month period, compared with US$311 per oz. a year ago. Total gold production increased to 49,197 oz. from 46,085 oz. between the two periods.
A strong hedging position allowed the company to realize an average gold price of US$356 per oz. during the third quarter; the price in the corresponding period last year was US$348.
Eldorado has managed to hedge all of its 1998 production at an average price of US$352 per oz. Future production totalling 470,000 oz., during the years 1999 through to 2003 has been hedged at an average price of US$364 per oz.
The Sao Bento mine cut third-quarter cash operating costs to US$239 per oz. compared with US$294 per oz. in the year-ago period. Gold production rose to 30,721 from 27,003 oz. between the two periods.
At last report, Sao Bento had an estimated gold resource of 5.2 million tonnes grading 10.93 grams per tonne, or 1.8 million contained ounces. The figure includes a reserve of 3.3 million tonnes at 9.02 grams gold, or 957,000 contained ounces.
In Mexico’s Sonora state, the company’s La Colorada mine reduced third-quarter cash operating costs to US$237 per oz., down from US$310 per oz. a year ago. Gold production rose to 15,257 from 12,649 oz.
Open-pit mining on the Gran Central deposit, now under way, is expected to result in higher-grade ore being delivered to the leach pad. Also, exploration work is trying to determine the feasibility of an underground operation near the pit.
Mineable reserves at the Gran Central deposit are pegged at 4.2 million tonnes grading 1.35 grams gold and 9.66 grams silver, which tallies to 183,903 oz. gold and 1.3 million oz. silver.
In neigboring Sinaloa state, El Dorado shut down the depleted La Trinidad mine. As a result, the company has revised its overall production forecast for 1998 to 185,000 oz. from the original 200,000 oz.
Third-quarter production at La Trinidad was 3,219 oz. compared with 6,433 oz in the corresponding period last year, while cash operating costs rose to US$397 from $234 per oz.
Farther afield, in Turkey, Eldorado has developed a mine plan for its Efemcukuru gold deposit. The plan envisages an underground operation combined with a processing facility. Gold would be produced in the form of a flotation and gravity concentrate. The prefeasibility study is due by year-end.
The deposit holds a resource of about 2.8 million tonnes grading 14.1 grams gold per tonne, equivalent to 1.3 million contained ounces.
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