Mining - Brazil

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

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

By -

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.

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.

Sector

Región

Related Sector