Vancouver — Eldorado Gold (ELD-T, EGO-X) has received strong initial results from a 26,000-metre drill program designed to probe the expansion potential of its newly opened Tanjianshan gold mine in China.
The exploration program is focused on an area of known mineralization immediately north of the current pit limit for the Jinlonggou deposit. Seven of the 18 holes assayed to date returned significant mineralization.
Hole 247 hit 10.04 grams gold per tonne over 25.2 metres, including an 8.1-metre section grading 23.42 grams gold. Nearby hole 248 intercepted 9.8 metres of 27.13 grams gold. And drill hole 243 returned 25.58 grams gold over 5.5 metres.
On the results, Eldorado shares gained 14, or 2%, to close at $7.08 on some 5.5 million shares traded.
Eldorado started commercial production at the open-pit Tanjianshan mine in Qinghai province in early February; the mine is expected to produce 125,000 oz. gold this year at a cash cost of US$240 per oz.
The Jinlonggou deposit, the focus of mining at Tanjianshan, holds proven and probable reserves of 8.5 million tonnes grading 4.1 grams gold for roughly 1.1 million contained ounces. Its mine life is projected at eight years.
Eldorado owns 90% of the mine. Dachaidan Mining and the First Brigade for Geology and Mineral Exploration of Qinghai province hold the remainder.
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