Eldorado Gold Corporation (“Eldorado” or “the Company”) announces that it is commencing construction of a three kilometre decline, or tunnel, from the Sigma mill to the 405 metre level of the Triangle mine. The Company is also providing an update on several positive developments in Greece.

“We are pleased to begin construction of the decline at Lamaque this summer. This is a project that we have been advancing for nearly a year and is another step towards further production growth and continued value creation at Lamaque. We would like to thank the government of Quebec and all our local stakeholders for their continued support for this project and our Lamaque operations,” said George Burns President and CEO.

Lamaque Decline Project

The fully permitted decline project represents a relatively modest investment that is expected to provide multiple near-term and long-term benefits as the Company continues to grow production at Lamaque. Detailed engineering and site preparations for the decline will commence this month and surface construction on the portal will begin in Q3 2020. The decline is expected to be completed by H1 2022 at an estimated cost of US$24 million. Additionally, the Company is evaluating the possible addition of an underground crushing and conveying system as well as a potential mill expansion. An update outlining the path forward at Lamaque is expected in Q4 2020.

Benefits to the decline include:

  • Eliminating surface re-handling and haulage (approximately 26 km round trip) of the ore from the Triangle mine to the Sigma mill, reducing carbon emissions, costs, and removing haulage traffic from the public road network,
  • Reducing the energy requirements for mine ventilation,
  • Supplying a means of secondary egress and ventilation to the Triangle mine, increasing safety underground,
  • Providing underground access for lower cost exploration in the prospective area between the Triangle mine and the historic Sigma and Lamaque mines – including further drilling of the Plug 4 and Parallel deposit and the Ormaque zone, and
  • Facilitating increased future production from the Triangle mine (contingent on continued reserve expansion) and allowing for mining of the Parallel deposit.

Greek Update

The Company provides an update on several recent developments in Greece including:

  • Eldorado completed a purchase of the 5% of Hellas Gold shares that were owned by Ellaktor, the Company is now the sole shareholder in Hellas Gold,
  • New Environmental Law 4685/2020 was passed by the Greek Parliament in May which modernizes Greek legislation to EU standards, and
  • Relocation of certain archeological items from Skouries to commence per the local archeological chamber’s instructions.