Eldorado hails success despite Turkish court case

Eldorado Gold, the gold mining company with a presence in Turkey, China and Brazil, has issued a trading update.

The statement covers the company’s 2007 operating results and its anticipated 2008 production.

Kisladag Mine in Turkey produced 135,306 oz at a cash cost of $189 oz. Operations ceased in mid-August 2007 following a Turkish court order requiring the temporary closure of the mine.

However, the company expects mining to resume early this year and production for 2008 is estimated at 190,000 oz, at a cash cost of $222 oz.

Tanjianshan mine in China performed exceptionally well in 2007 with unit costs falling quarter-by-quarter. Production for the year totalled 138,162 oz, with unit cash costs at $291 oz. Production for 2008 is forecast at 109,000 oz with a cash cost of $289 oz.

Eldorado’s Sao Bento mine in Brazil ceased production in the second quarter of 2007, having provided 7,667 oz at cash operating cost of $208 oz. Work is continuing on reclamation projects and closure requirements.

The Efemcukuru project in Turkey is continuing to acquire land and construction activities are expected to commence early in the second quarter of 2008.

In presenting the update, Paul N Wright, Eldorado’s president and chief executive said: “Both Kisladag and Tanjianshan have established their ability to produce at rates consistent with expectations. We look forward to a timely and positive resolution of the Kisladag court case and a resumption of Eldorado’s growth.”

The company aims to produce 500,000 oz of gold per year by 2010.