Eldorado Gold Releases Feasibility Study for Tocantinzinho Project

Eldorado Gold Corp. (TSX:ELD,NYSE:EGO) and its subsidiary, Brazauro Recursos Minerais SA, released a feasibility study for the Brazil-based Tocantinzinho gold project.

Highlights include:

• 1.7 million oz of gold produced over the life of the project
• Using conventional open pit mining methods, mining a total of 41.1 million tonnes (Mt) of ore with a strip ratio of 3.5:1 over the mine life.
• Recoveries of 90.1% for primary ore and 75.0% for saprolite ore, utilizing a simple comminution, flotation and leaching process.
• Initial capital cost estimated at $466 million and sustaining capital, including closure costs, estimated at $64 million.
• Cash operating costs of $572/oz.
• Generation of a positive NPV of $245 million at a 5% discount rate and an IRR of 13.5%.

Major assumptions are as follows:

• Gold price of $1,250/oz
• Effective Tax Rate of 15.25%
• Royalty Rate of 2.5%
• Transport & refining cost of $15.00/oz Au
• Discount rate of 5%
• Exchange rate of US$1 = 2.7 BRL

Paul N. Wright, CEO of Eldorado, commented:

The Study results reflect the continued refinement of engineering and cost estimation on the Tocantinzinho Project. The Company has successfully operated in Brazil since 1996 and the significant experience of our technical team in Brazil contributes to the integrity of the results. We will continue to further refine the development plan and complete the outstanding permitting in advance of a construction decision.

Click here to read the full Eldorado Gold Corp. (TSX:ELD,NYSE:EGO) press release.

Eldorado is a leading low cost gold producer with mining, development and exploration operations in Turkey, China, Greece, Romaniaand Brazil.  The Company’s success to date is based on a low cost strategy, a highly skilled and dedicated workforce, safe and responsible operations, and long-term partnerships with the communities where it operates.  Eldorado’s common shares trade on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).