successfully navigating the challenges …. operating to plan
Brazil, China, Turkey & Greece - In situ: +15 million oz Gold
Message: 2008 Year End Update and 2009 Guidance
| January 22, 2009 |
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Eldorado Gold Corporation: 2008 Year End Update and 2009 Guidance
Record Performance in 2008, Further Growth in 2009 |
| VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 22, 2009) - Paul N. Wright, President & Chief Executive Officer of Eldorado Gold Corporation (TSX:ELD)(NYSE Alternext US:EGO) ("Eldorado", the "Company", or "we") is pleased to provide the following update on the Company's 2008 operating results and anticipated 2009 production. "Eldorado Gold in 2008 performed to plan with our assets producing over 300,000 ounces at a cash operating cost of $257 per ounce. We successfully initiated construction at Efemcukuru in Turkey and Vila Nova in Brazil and grew by acquisition and exploration," commented Paul N. Wright. "We are extremely pleased to be one of the lowest cost pure gold producers reporting, with a strong balance sheet, no debt, and unhedged. We were the top performer on the S&P/TSX composite index in 2008 with share appreciation of 65.5 per cent." Eldorado Gold The Company ended 2008 having produced 308,802 ounces of gold at a cash operating cost of $257 per ounce. All debt owed to HSBC bank was paid and the offsetting restricted cash released to Eldorado. Upon final close of the sale of Sao Bento Mine to AngloGold Ashanti ("AngloGold") the Company immediately began to monetize the AngloGold shares and by January 20, 2009 had completed this disposition contributing to the present cash balance of $110 million. The Company is planning to produce 325,000 to 340,000 ounces of gold in 2009 at a cash operating cost of approximately $300 per ounce. Capital expenditures and exploration expenses are planned to be approximately $115 million and $15 million respectively. The largest component of capital spending is planned for the Efemcukuru Project, Turkey where we anticipate $85 million to be invested in 2009. With the planned commencement of operations at Efemcukuru next year the Company's gold production is expected to be in excess of 400,000 ounces in 2010, with costs remaining in the lower quartile. Kisladag Mine In 2008 the mine produced 190,334 ounces of gold at a cash operating cost of $254 per ounce. Production for the year re-commenced on March 6, 2008 following a court decision allowing resumption of all production activities. The transition to owner mining was completed successfully in the 3rd Quarter of 2008. Production for 2009 is planned to be approximately 230,000 to 240,000 ounces of gold at a cash operating cost of $265 per ounce. Ore production for 2009 is planned to be 10.1 million tons at 1.2 g/t with a strip ratio of 1.06:1 compared to a strip ratio of 0.53:1 in 2008. Tanjianshan Mine The Tanjianshan mine ("TJS") performed exceptionally well in 2008 with production of 118,468 ounces of gold at cash operating cost of $261 per ounce. Construction of Phase 2, which consists of a roaster system, and acid production and arsenic removal circuits, continued through 2008. Sequential commissioning is now underway. Production for 2009 is planned to be 95,000 to 100,000 ounces of gold at a cash operating cost of $385 per ounce. Costs at TJS are expected to increase due to the transitioning to refractory ore. Ore production in 2009 is planned to be 800,000 tons at 4.9 g/t with a strip ratio of 7:1. Eldorado is a gold producing, exploration and development company actively growing businesses in Brazil, Turkey, China, Greece and the surrounding regions. With our international expertise in mining, finance and project development, together with highly skilled and dedicated staff, we believe that Eldorado is well positioned to grow in value as we create and pursue new opportunities. ON BEHALF OF ELDORADO GOLD CORPORATION Paul N. Wright, President & Chief Executive Officer |
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