New HPGR circuit to help Eldorado achieve extended 15 year life at Kisladag

Eldorado Gold Corporation has announced a 15-year remaining mine life at Kisladag based on the completed long-cycle heap leach testwork and the replacement of the tertiary crushing circuit with a high-pressure grinding roll (HPGR) circuit. “Kisladag has been the cornerstone asset of Eldorado for over a decade, producing over 3 Moz of gold and generating significant value for all stakeholders during that period.  Following the resumption of full operations last spring, and the significant work and testing undertaken by the Eldorado team over the past 18 months, we are pleased to announce a mine life extension at Kisladag that puts this asset back in the core of our portfolio”, said George Burns, President and CEO.

He added: “Based on these positive developments, we are providing a five-year outlook for the business, which demonstrates a steady production profile that we expect will allow us to continue to de-lever the balance sheet and provide a solid foundation for future growth.” Results of the testwork indicate that increased leach time at Kisladag, in conjunction with HPGR, increases heap leach life of mine recovery to approximately 56% and extends mine life through 2034. A new mineral reserve has been developed for Kisladag; highlights include:

  • Updated Proven and Probable Mineral Reserves of 173.2 Mt of ore at 0.72 g/t, containing 4 Moz of gold.
  • 15 year mine life, with operations continuing through 2034.
  • Average annual production of approximately 160,000 oz per year at an average cash cost of $675-725/oz of gold sold and an average all-in sustaining costs (AISC) of $800-850/oz of gold sold.
  • The project self-funds all development capital for waste stripping and the HPGR circuit. The cost for the HPGR circuit (approximately $35 million) is spread over 2020 and 2021, while the cost of capitalised waste stripping (approximately $260 million) is spread over the life of the project, with heavier stripping in the first several years.
  • The company believes there is potential for further increases in recovery with optimization of the HPGR circuit, which could lead to higher gold production.
  • An average strip ratio over the remaining life of the mine of 1.1 to 1.

For 2020, approximately 12 Mt of new ore at an average grade of 1 g/t is expected to be placed on the leach pad at Kisladag. Production is forecast to be 240,000-260,000 oz of gold. Cash operating costs are estimated to be $450-550/oz of gold sold.  Gold produced in 2020 is expected to come from ore stacked in 2019 as well as ore stacked in 2020, consistent with the longer leach cycle.

Sustaining capital expenditures for 2020 are forecast to be approximately $25-30 million, spent primarily on inter-lift liner, mobile equipment rebuilds and process infrastructure. Growth capital of $70-80 million includes waste stripping, engineering and costs associated with the HPGR circuit.

As part of the increase to the mine life at Kisladag, waste stripping (capitalised and operating) is required and is expected to total approximately 193 Mt (LOM strip ratio of 1.1 to 1). Waste stripping is underway and is forecast to continue over the life of mine, the bulk of which will be completed from 2020-2025.