The new year is set to be a milestone for Canadian group Eldorado Gold and its Greek subsidiary Hellas Gold. According to the program recently presented by the company’s management to analysts, the mining operation in Skouries, Halkidiki – also Eldorado’s largest – is on course to be put into operation gradually over the next year.

The mine, a combination of underground and surface utilization, will dig for and process the porphyry deposit, rich in gold (0.74 grams per ton) and copper, that has been identified in the area.

By the end of March, the Skouries mine will be put into pilot operation, while by the end of the third quarter it will have entered a phase of full commercial operation. For the next year, total gold production from Skouries is estimated at 50,000-60,000 ounces of gold and 15-20 million pounds (approximately 7,000-9,000 tons) of copper. The concentrate that the mine will produce will be sent abroad for enrichment, in order to produce pure gold and copper.

Already, construction of the Skouries unit is more than 85% complet and when it is put into production operation, it will contribute to 50% of the consolidated turnover of Eldorado Gold.

The total value of the investment in Skouries is estimated at approximately 1 billion euros, of which more than €335 million is estimated to have been invested this year.

The Skouries deposit has a minimum life of 20 years based on existing reserves, with Hellas Gold having secured financing of €680 million. Some €480 million of that comes from loans from the National Bank and Piraeus Bank, while €200 million correspond to financing from the Recovery Fund. Furthermore, an amount of €55 million has come as financing through equity from the European Bank for Reconstruction and Development.

The Skouries investment includes the implementation of a metallurgy unit (through which the production of gold in its final form will be ensured). To this end, a metallurgy committee has been established at the Ministry of Environment and Energy to evaluate the study the company will submit.

Source: Ekathimerini.com