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Eldorado Gold moves to restart mining at Turkey's Kisladag gold mine

Last updated: 15:45 31 Jan 2019 GMT, First published: 14:23 31 Jan 2019 GMT

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For 2019, Eldorado is forecasting production of 145,000 to 165,000 ounces of gold at Kisladag

Eldorado Gold Corporation (NYSE:EGO) announced Thursday that it will resume mining, crushing, stacking and heap leaching at its Kisladag gold mine in Turkey and suspend a previously announced mill project.

The decision to restart mining and heap leaching at Kisladag is supported by improved heap leach recoveries and confirmed by a revised heap leaching plan developed early this year, according to Eldorado’s CEO George Burns.

READ: Eldorado Gold's results look bright: earnings up, production boosted

“The revised heap leaching plan results in favorable economics when compared to milling, without the risks associated with the construction and financing of a $500 million project,” said Eldorado’s CEO George Burns in a statement.

In response to the news, investors sent Eldorado shares up 16.6% to $3.43 in morning trade Thursday.

Mining at Kisladag is expected to restart by the end of the first quarter.

READ: Shares of Eldorado climb after gold producer wins ruling on metallurgy plant in Greece

For this year, Eldorado is forecasting production of 145,000 to 165,000 ounces of gold at Kisladag, including 70,000 ounces derived from ore previously placed on the leach pad. Cash costs are set to be $570 to 620 per ounce of gold sold. Kisladag will contribute to Eldorado’s expected full-year gold production of 390,000 to 420,000 ounces.

As mining and heap leaching at Kisladag gathers pace in 2019, consolidated gold production is expected to increase to 520,000 - 550,000 ounces of gold in 2020 before dropping to 350,000 - 380,000 ounces of gold in 2021.

“With annual gold production growing to over 550,000 ounces in 2020, the company expects to generate significant free cash flow over the next three years and will consider debt retirement starting later this year,” Burns added.

Guidance at Kisladag will be updated later in 2019 based on results of testwork being completed on deeper material and new economic forecasts for heap leaching and the mill project.

Based in Vancouver, Eldorado is a gold and base metals producer with mining and exploration operations in Turkey, Canada, Greece, Romania, Serbia, and Brazil.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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