ELDORADO GOLD - TECH REPORTS - ANALYST PICKS - MANAGEMENT
 GEOPOLITICAL RISK

 

Leo Larkin of STANDARD&POOR'S
Date: Jan 2008

Eldorado Gold Corporation (EGO) engages in the exploration, development, extraction, processing and reclamation of gold properties principally in Brazil, Turkey, and the People's Republic of China. 

As of December 31, 2006, the company had proved and probable reserves of 6,790,000 ounces of gold. 

The company's Kisladag Mine in Usak, Turkey, began commercial production in July 2006. Production in 2006 was 70,895 ounces at a cash cost of US$206/oz of gold. Kisladag, an open pit mine with a 14 year mine-life, at full production will produce 240,000 ounces of gold annually. 

In the last full year of commercial production Eldorado Gold's Sao Bento Mine in Minas Gerais, Brazil produced64,750 ounces at a cash cost US$454. Production ceased January 2007. 

The company's 90% owned Tanjianshan Mine (TJS) in Qinghai province of China began commercial production in February 1, 2007. Tanjianshan is currently an 11-year, open pit mine. It had its first gold pour in December. Forecasted production for 2007 is 120,000 ounces to 130,000 ounces of gold at a cash cost of US$235/oz to US$245/oz. 

TJS comprises four large contiguous exploration licenses that total 338 square kilometers in the area and that encompass two mining licenses over two defined gold deposits, namely the Jinlonggou (JLG) and Qinlongtan (QLT) deposits, as well as numerous other prospects and anomalies. 

On March 7, 2007, Eldorado Gold announced that Tanjianshan received its Gold Mining Certificate from the National Development and Reform Commission (NDRC). This certifies Eldorado Gold as an official gold producer under the Laws of the People's Republic of China. The certificate is the first one granted to a North American gold producer with operations in China. 

In Turkey, the Kisladag land position consists of one pre-operating license (number IR 7302), having a total area of 15,717 hectares. The company owns a 100% interest in Kisladag through its wholly owned Turkish subsidiary Tuprag Metal Madencilik Sanayi Ve Ticaret Limited Sirketi (Tuprag). Kisladag is located in western Turkey in Ubak Province, 35 kilometers southwest of the city of Ubak and 180 kilometers from the Aegean port city of Izmir. 

Efemcukuru, located in Izmir province, is the company's secondary development project in Turkey. Eldorado Gold owns a 100% interest in Efemcukuru through its subsidiaries. Efemcukuru consists of two preoperation licenses covering 3,072 hectares. 

The company's 50/50 joint venture, the AS Project, consists of 27 licenses covering a total of 58,642 hectares. This property includes a porphyry-style gold-molybdenum-copper deposit that has alteration styles similar to those at Kisladag. 

Eldorado Gold's operating mine, Sao Bento, is located near Santa Barbara, Brazil. The company owns 100% of Sao Bento through its various subsidiaries, including its wholly owned Brazilian subsidiary, Sao Bento Mineracao SA. The mine site covers an area of 800 hectares and consists of one mining concession. A single contiguous mining concession of 1,221 hectares, also owned 100% by Sao Bento Mineracao SA, adjoins the northeastern boundary of the mine site. 

Under a joint venture agreement with DSI Consult & Mineracao Amapa (DSI), Eldorado Gold has an option to acquire 84% of the Vila Nova gold project in Amapa State. It also has an option to acquire 50% of the Vila Nova iron ore project from DSI. 

The company also owns a 100% interest in the Tartarugalzhino project in Amapa State covering an area of 80,000 hectares. 

The company was incorporated in 1992 under the name Eldorado Corporation, Ltd. and changed its name to Eldorado Gold Corporation in 1996.