Eldorado Gold [stock_market_widget type="inline" template="generic" color="default" assets="ELD.TO" markup="(TSX: {symbol} {currency_symbol}{price} ({change_pct}))" api="yf"] has just announced that it has begun commercial production at the Lamaque mine in Quebec. This mine is wholly-owned by Eldorado and it produces ore from the Triangle deposit. The ore is then sent to the refurbished Sigma mill for processing.
According to the press release issued by Eldorado, Lamaque has an initial mine life of seven years and is on track to deliver 100,000 ounces to 110,000 ounces of gold production this year. The good part is that the mine will witness an uptick in its gold production in subsequent years.
Eldorado forecasts that Lamaque will deliver between 125,000 and 135,000 ounces of gold in 2020 and 2021. This isn’t surprising as the company had witnessed a 50% jump in the inferred resources at the Lamaque mine last year, and is currently conducting further drilling in order to boost its reserves and resources at the mine.
This is great news for Eldorado investors as the beginning of production at Lamaque will positively impact its production profile. The company had already recorded pre-commercial production at the mine last year and was anticipating starting commercial production by the end of the first quarter of 2019.
Thanks to this addition, Eldorado Gold’s output this year will fall in the range of 390,000 ounces to 420,000 ounces, which would be a jump of 16% at the mid-point. Moreover, the company is busy ramping up production at another mine – Kisladag – where the company has decided to resume mining and heap leaching activities.
Thanks to Kisladag, Eldorado believes that its production next year will jump to a range of 520,000 ounces to 550,000 ounces. Also, the company’s cost profile will be better as it anticipates all-in sustaining costs of $867-$967 per ounce from 2019 to 2021, lower than last year’s AISC of $994 per ounce.
So, Eldorado Gold is on track to deliver a solid year thanks to a superior production profile and higher gold prices.
