NEWS
Eldorado Gold Corporation: Efemcukuru Project Update
2008-08-29 11:35 ET - News Release
VANCOUVER, BRITISH COLUMBIA-- (MARKET WIRE)-- 08/29/08
Paul N. Wright, President and Chief Executive Officer of Eldorado GoldCorporation ("Eldorado" or the "Company" or "we") (TSX: ELD)(AMEX: EGO)is pleased to provide an update for the Efemcukuru Gold project (the"Project"), Turkey which is presently under construction.
The Company together with its consultants have completed athorough review of the Project and has updated its estimates forinitial capital investment, operating costs and schedule forcommissioning. For comparison purposes these parameters are referencedagainst the feasibility study (the "Study") completed in July 2007.
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Performance Comparison
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Feasibility Study Update - August 2008
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Crude Oil $US/barrel 60 116
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Exchange Rate YTL/$US 1.36 1.20
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Capital Investment $USM 104 142
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Cash Operating Cost $/oz 227 285
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Commissioning & start-up Q4 2009 Q1 2010
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Tables 1 and 2 below describe the significant areas of capital and operating cost increases.
Table 1: Capital Increase
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Item $US M
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Exchange Rate 18.0
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Materials 10.4
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Labour 4.1
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Scope Change 5.5
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Total $ 38.0
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Table 2: Operating Cost Increase
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Item $US/oz
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Exchange Rate 8.0
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Materials 11.0
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Labour 13.0
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Consumables 26.0
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Total $ 58.0
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In providing this update the Company has maintained the mineplan, developed in the Study which established reserves based on cutoffgrade assuming a $530 gold price. To date there has been no estimationof additional reserves accessible as a result of higher gold prices andthe attendant potential enhancement of operating costs.
In updating its capital estimate, the Company has continued tobase its estimate on new equipment and has not incorporated the benefitof utilizing a selection of mobile equipment being provided by theCompany's Sao Bento mine in Brazil.
"We continue to be pleased with the progress of our EfemcukuruGold project with construction underway. In addition exploration onsite continues to substantiate our sustained expectation for resourceand reserve expansion. Despite anticipated escalation in both capitaland operating costs the Efemcukuru Gold project remains one of the mostrobust gold projects presently being developed in the gold industry,"commented Paul N. Wright, President & Chief Executive Officer.
About Eldorado
Eldorado is a gold producing, exploration and developmentcompany actively growing businesses in Brazil, Turkey, China, Greeceand the surrounding regions. With our international expertise inmining, finance and project development, together with highly skilledand dedicated staff, we believe that Eldorado is well positioned togrow in value as we create and pursue new opportunities.
ON BEHALF OF ELDORADO GOLD CORPORATION
Paul N. Wright, President & Chief Executive Officer
Certain of the statements made herein may containforward-looking statements or information within the meaning of theUnited States Private Securities Litigation Reform Act of 1995, andforward looking statements or information within the meaning of theSecurities Act (Ontario) . Such forward looking statements orinformation include, but are not limited to statements or informationwith respect to unknown risks, uncertainties and other factors whichmay cause the actual results, performance or achievements of theCompany, or industry results, to be materially different from anyfuture results, performance or achievements expressed or implied bysuch forward-looking statements. Forward-looking statements orinformation are subject to a variety of risks and uncertainties, whichcould cause actual events, or results to differ from those reflected inthe forward-looking statements or information. Should one or more ofthese risks and uncertainties materialize, or should underlyingassumptions prove incorrect, actual results may vary materially fromthose described in forward looking statements. Specific reference ismade to "Forward Looking Statements and Risk Factors" in the Company'sAnnual Information Form and Form 40-F dated March 31, 2008.Forward-looking statements herein include statements regarding theexpectations and beliefs of management. Such factors included, amongstothers the following: gold price volatility; impact of any hedgingactivities, including margin limits and margin calls; discrepanciesbetween actual and estimated production, between actual and estimatedreserves, and between actual and estimated metallurgical recoveries;mining operational risk; regulatory restrictions, includingenvironmental regulatory restrictions and liability; risks of sovereigninvestment; speculative nature of gold exploration; dilution;competition; loss of key employees; additional funding requirements;and defective title to mineral claims or property, as well as thosefactors discussed in the section entitled "Risk Factors" in theCompany's Annual Information Form and Form 40-F dated March 31, 2008.We do not expect to update forward-looking statements continually asconditions change and you are referred to the full discussion of theCompany's business contained in the Company's reports filed with thesecurities regulatory authorities in Canada and the U.S.
Eldorado Gold Corporation common shares trade on the TorontoStock Exchange (TSX: ELD) and the American Stock Exchange (AMEX: EGO).
Request for information packages: laurelw@eldoradogold.com