Eldorado Gold produced 659,134oz gold, 513,581t iron ore in 2011

- Monday, January 9, 2012

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Vancouver's Eldorado Gold (TSX: ELD, NYSE: EGO) produced 659,134oz of gold and 513,581t of iron ore in 2011, the company said in its operating results.

Cash costs were US$405/oz and US$63.90/t, respectively.

The company's only iron ore operation is the Vila Nova mine in Brazil's Amapá state.

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In Brazil, Eldorado also has the Tocantinzinho gold project in Pará state. The company expects to make a construction decision on Tocantinzinho this year, pending the results of a feasibility study in the second quarter and the approval of the environmental impact study (EIS), expected in Q3.

GUIDANCE

Eldorado is expecting iron ore production of 560,000-600,000t at a cash cost of US$65-75/t this year at Vila Nova. Capital expenditure at the operation is set at US$10mn.

Gold guidance for 2012 is set at 730,000-775,000oz at a cash cost of US$430-US$450/oz.

The company is forecasting an average iron ore price of US$100/t and a gold price of US$1,700/oz in 2012.

EXPLORATION

The global exploration budget for 2012 is estimated at US$66mn, with around US$16mn earmarked for Brazil.

The company also has mines in Turkey, China and Greece.

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