Eldorado pulls strong gold grades from Efemcukuru (September 24, 2007)

Vancouver — Though its Kisladag mine remains under court-ordered closure, Eldorado Gold (ELD-T, EGO-X) is continuing to work unabated at its other Turkish gold project, releasing a slew of drill results from Efemcukuru.

In early August, Eldorado announced plans to develop Efemcukuru on the heels of a positive feasibility study. The study was based on reserves in two oreshoots — the middle and south shoots — that are both part of the Kestane Beleni vein.

A summer drill program continued to probe those shoots, as well as starting to explore the vein’s northern extension.

In the south oreshoot, hole 229 returned 17.69 grams gold per tonne over an estimated true width of 6.8 metres, confirming the presence of a third mineralized lobe. Hole 212 intercepted 11.6 metres of 14.36 grams gold, confirming the high-grade core of the largest mineralized lobe, and hole 244 hit 3.1 metres of 23.1 grams gold from 260 metres down-hole, the deepest intersection to date.

In the middle oreshoot, hole 209 returned 19.34 grams gold over 6.4 metres, hole 255 hit 9.5 metres of 12.26 grams gold, and hole 262 intercepted 4.4 metres grading 18.81 grams gold.

And in the north oreshoot, the partially tested northern extension of the vein, hole 265 was the first Eldorado hole to hit a higher-grade lobe, returning 12.52 grams gold over 5 metres.

Efemcukuru hosts proven and probable reserves of 3.79 million tonnes grading 10.04 grams gold per tonne, using a 4.5-gram gold cutoff grade, for a total of 1.22 million contained ounces. The deposit is an epithermal-hosted vein structure in the Menderes Massive of western Turkey.

The feasibility study called for an underground mine with ore milled on-site operating at 1,100 tonnes per day to produce some 112,400 oz. gold annually at a cash cost of US$226 per oz. The mine has a projected life of 9.4 years.

Plans call for the flotation concentrate to be transported roughly 100 km to the Kisladag mine facility for regrinding and cyanidation. Kisladag has been under a court-ordered closure since Aug. 20.

An anti-mining group in Turkey requested the closure injunction as part of an appeal in its long-standing lawsuit against Eldorado, a suit based on charges that the Kisladag environmental impact assessment was deficient. The shutdown will last until the appeal can be heard in court, likely in October.

Eldorado anticipates an 18-month construction schedule for Efemcukuru, with production starting in late 2009. Initial capital costs are estimated at $104.2 million.