Eldorado Gold Corp. Released The Certej Feasibility Study

Eldorado Gold Corp(TSE:ELD), after market closed on Tuesday, released the Certej feasibility study. It is envisioned as an open pit operation processing 8,000 tpd (pressure oxidation). Power is located (from the national grid) 14km away, water is available 10km away from the Mures River, and a limestone quarry is 13km away.

The Study was led by an internal team with technical support provided by various Canadian and Romanian consultants. The Certej project is located in the southern part of the Apuseni Mountains in central Romania, approximately 12 kilometres north-east of the regional town of Deva in Hunedoara County.

“The positive results of this study form the basis for Eldorado, together with our Romanian partners, to develop the Certej mine.  Significant detailed engineering design and cost estimating provides for a high degree of confidence in the capital estimate and projected operating performance of the Certej project,” stated Paul N. Wright, Chief Executive Officer of Eldorado Gold.

The Study’s highlights include:

  • Generation of a post-tax internal rate of return (IRR) of 13% and a net present value (“NPV”) at a 5% discount rate of $229 million.
  • An open pit strip ratio of 2.96:1, mining a total of 44 million tonnes (Mt) of ore over the life of mine.
  • Estimated cash operating costs of $568/oz and all-in sustaining costs of $745/oz.
  • Initial capital estimate of $449 million and sustaining capital estimate of $203 million (including closure).
  • Processing rate of ~8,000 tonnes per day (“tpd”) would produce an average of 140,000 oz Au and 830,000 oz Ag per year.
  • Confirmation of Pressure Oxidation (POX) for mineral processing; regarded as Best Available Technology.
  • Recoveries of 87.4% and 80% for gold and silver respectively.

Major Assumptions

  • Discount rate of 5%.
  • Values are presented on a 100% basis.
  • Gold price of $1,250/oz, silver price of $16.50/oz.
  • Exchange Rates: 1 USD = 4 RON; 1 USD = 0.91 EUR.
  • Tax Rate of 16%.
  • Royalty Rate of 6%.
  • Transport & refining cost of $9.50/oz Au.

Nicholas Newman, MBA (from Princeton University, New Jersey), is financial analyst and covers Consumer Goods, Financial & REIT and Healthcare sectors. Prior joining Market Cash Cow, Nicholas Newman worked with JMP Securities. If you have a great story idea for Nicholas Newman, you can write at [nicholas.newman@marketcashcow.com ].


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