Post by
TheRock07 on May 19, 2009 7:18pm
Eldorado Paid $60 million for Tanjianshan
ICI's Dachang has 2.9 m oz and that will increase when the new 43-101 is released in the near future.
Nearby, is ELD's Tanjianshan mine which it acquired in 2005 when gold was around $500/oz.
It acquired the project from Afcan Mining shortly after Afcan completed the initial feasability study.
That feasibility study compiled by independent consultants, RSG Global Pty. Ltd., in April 2005 estimated the Tanjianshan Project to contain proven and probable reserves of 944,000 ounces (6.0 million tonnes @ 4.9 grams per tonne). The feasibility study projects total gold production of 842,000 ounces over an eight year mine life with an Internal Rate of Return of 32%.
Gold production began in in the first quarter of 2007 and the mine has about another 6 -7 years remaining in its reserves.
That is, ELD paid about $60 per oz of gold in the ground.
Dachang is adjacent to.Tanjianshan and has similar grades and mettalurgiy and ELD needs additional mines to reach its goal of 800,000 oz per year.
Its a natural fit, and the 2005 metrics would suggest a takeover price close to $175-$200 million for Dachang..