Name of the Project
Skouries gold/copper project.

Location
The project is located in Halkidiki Peninsula, in northern Greece.

Client
Hellas Gold, a subsidiary of Eldorado Gold Corporation (95%) and Aktor (5%).

Project Description
The Skouries project is a gold/copper porphyry deposit, which is planned to be mined using a combination of conventional openpit and underground mining techniques. The mineral process facilities will produce doré and a gold/copper concentrate.

The project has total proven and probable reserves of 157.67-million tonnes, grading 0.74 g/t gold and 0.49% copper. 

Mineral resources have been estimated at 289.28-million tonnes, grading 0.58 g/t gold and 0.43% copper, with inferred mineral resources of 170.14-million tonnes grading 0.31 g/t gold and 0.34% copper.

Gold production has been estimated at 140 000 oz/y.

Skouries has been designed as a two-phase operation.

Phase 1 comprises a combined openpit and underground mine operating over ten years.

Skouries will be by conventional truck-and-shovel operation. The mining sequence will consist of drilling, blasting, loading and hauling of ore and waste materials for processing and waste disposal.

Phase 1 total mill feed is eight-million tonnes a year, consisting of a nominal 5.5-million tonnes a year from the openpit mine, combined with 2.5-million tonnes a year from the underground mine. 

At the start of the mine life, during the initial two year underground mine ramp-up period, the openpit feed rate is 6.4-million tonnes a year to maintain the eight-million-tonne-a-year mill feed. 

During Phase 1, about 6.5-million tonnes of oxide ore will be stockpiled to be rehandled for mill feed during Phase 2. Phase 1 will be completed at the end of the openpit mine life in Year 10.

Phase 2 consists of mining from the underground mine for a further 13 years. Sublevel open stoping has been confirmed as the most appropriate underground mining method for the project.

Phase 2 mine production, from Year 11 to the end of the life-of-mine (LoM), will be provided from the underground mine. Phase 2 mine development begins in Year 4 to allow for a seamless ramp-up from the Phase 1 production of 2.4-million tonnes a year. During the first three years of Phase 2, the mill feed rate of eight-million tonnes a year will be maintained by reclaiming oxide ore stockpiled during Phase 1 at 1.6-million tonnes a year. 

From Year 14, Phase 2 mill feed will be maintained at an average of 6.2-million tonnes a year, solely from underground mine production.

The total LoM is 23 years.

The materials handling strategy for Phase 1 is based on truck haulage of run-of-mine ore directly to the surface from the loading bays using the dual ramp system.

The Phase 2 materials handling will involve shaft hoisting of ore to the surface. Shaft hoisting is critical to allow for ramp-up to full production of 6.4-million tonnes a year from the Phase 1 production of 2.5-million tonnes a year. 

To hoist the material by shaft, underground crushing will be implemented. The design of the Skouries mine includes provision for remote mining technology, which has an impact on the cycle times of stopes and the productivity of equipment. 

This technology at its core includes teleremote operation of mechanised equipment by an operator located on surface or in a remote area of the underground mine.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, at a 5% discount rate, of $925-million and an internal rate of return of 21.2, with a payback of 3.4 years.

Value
The project will cost an estimated $689.2-million to implement.

Duration
Not stated.

Latest Developments
Eldorado is awaiting the electromechanical installation and antiquities permits for the project before construction of the mine can continue.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Eldorado Gold manager – investor relations Peter Lekich, tel +1 604 687 4018 or email peter.lekich@eldoradogold.com; or director – communications and government relations Louise Burgess, tel +1 604 687 4018 or email louiseb@eldoradogold.com.