The mining concession, which permits mining and commercial production at the Tocantinzinho project, was issued on May 18, 2018 by the federal branch of the Brazilian Ministry of Mines. This permit, in addition to the Environmental Construction Licenses, issued by the Environmental Agency of the State of Para, completes the permits required for project construction. The project plan is currently undergoing an optimization phase to improve capital costs and the economics of the project. Eldorado’s Board of Directors will assess next steps for the project after completion of this work.
Eldorado’s wholly owned subsidiary, Tüprag Metal Madencilik Sanayive Ticaret A.S., has received confirmation from the Turkish Ministry of Environment and Urbanization, that the proposed construction of the mill at the Kisladag site is permissible under the existing Kisladag Environmental Impact Assessment, approved by the MoE in 2014. Eldorado does not expect to make any material amendments to the existing EIA as the mill site falls within the EIA approved project boundaries and meets other existing EIA requirements. The installation and construction of the Kisladag mill remains subject to further routine permitting, which will be submitted to the relevant Ministries for approval following detailed design work.
As referenced in Eldorado’s press release dated March 21, 2018, the feasibility study for the Kisladag mill is expected to be completed later this year, with a final investment decision by the Eldorado Board of Directors expected shortly thereafter.
As disclosed in the Company’s First Quarter results release dated April 26, 2018, the mining lease for the Triangle deposit was received in early 2018. This key permit enables production from the Triangle deposit, currently expected in early 2019.
Underground development continues ahead of schedule while refurbishment of the Sigma mill is ongoing. The Company continues to progress infill drilling and extension drilling with the goal of converting resource to increase the Proven and Probable reserves as well as growing resources at Triangle and other known mineralized zones and new targets.
Kassandra Mines, Greece
Eldorado continues to discuss the need to approve outstanding permits for the development of its Kassandra assets with the government of Greece. The Company remains committed to developing its Kassandra assets, including Skouries, in accordance with its contractual and other legal obligations, which Greek court rulings have consistently supported. Eldorado’s compliance with its legal obligations was confirmed by the recent positive arbitration decision, which found the Company not in breach of the provisions of its Transfer Contract with the Greek State.
The transition of the Skouries site to care and maintenance is expected to be complete by the end of Q2 2018. Ongoing care and maintenance costs are estimated to be CAD 3-5 million per year for 2019 and beyond.
Meanwhile, Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkey, Greece, Romania, Serbia, Canada and Brazil. The Company has a highly skilled and dedicated workforce, safe and responsible operations, a portfolio of high-quality assets, and long-term partnerships with local communities. Eldorado’s common shares trade on the Toronto Stock Exchange and the New York Stock Exchange.