Engineering & Mining Journal

JUN 2016

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REGIONAL NEWS - ASIA 20 E&MJ; • JUNE 2016 www.e-mj.com Eldorado Sells its Chinese Gold Mines On April 26 and May 16, Eldorado Gold reported agreements to sell all of its gold mining operations and assets in China. The April 26 announcement reported sale of Eldorado's 82% interest in the Jinfeng underground mine in Guizhou province, south China, to a wholly-owned subsidiary of China National Gold Group for $300 million in cash. The mine is based on a Carlin-type deposit and has an expected mine life of 14 years based on current proven and probable reserves. In 2016, the Jinfeng plant will process about 930,000 metric tons (mt) of ore at a grade of 3.89 g/mt gold, resulting in production of 95,000 ounces (oz) to 105,000 oz of gold. The May 16 announcement reported the sale of Eldorado's 90% interest in the Tanjianshan mine; its 95% interest in the White Mountain mine; and its 75% inter- est in the Eastern Dragon development project to an affliate of Yintai Resources Co. for $600 million in cash. Tanjianshan is an open-pit mine in Qinghai province, northwest China; White Mountain is an underground mine in Jilin province, northeast China; and Eastern Dragon is an advanced open-pit underground project scheduled to start production in the second half of 2016 in Heilongjiang province, far northeast China. The Tanjianshan mine currently pro- duces from two open pits. Mine life based on current proven and probable reserves is seven years. Mine production in 2016 is planned at approximately 1.1 million mt at a gold grade of 2.39 g/mt. Gold pro- duction for the year is forecast at 70,000 to 80,000 oz. White Mountain is based on a sedi- ment-hosted gold deposit. The mine has current proven and probable reserves suffcient for a mine life of seven years. Mine production in 2016 is planned at 850,000 mt at a grade of 3.24 g/mt. Gold production is forecast at 75,000 to 85,000 oz. The Eastern Dragon development pro- ject is based on a high-grade epithermal gold-silver deposit. Initial production will be from a small open pit, which will be followed by underground mining. Eldorado Gold is a Canadian company headquartered in Vancouver, British Co- lombia. Following sale of its assets in Chi- na, it will have mining, development, and exploration properties in Turkey, Greece, Romania and Brazil. China National Gold Group is China's leading gold mining company and the only central state-owned enterprise in China's gold industry. Yintai Resources is engaged primarily in nonferrous metals mining and controls the Huaaobaote polymetallic mine in In- ner Mongolia. Sulphide Gold Project Alacer Gold's board of directors has ap- - phide project at its 80% owned gold mine in the Erzincan province, east- ern Turkey processing oxide ore via an open-pit, heap-leach process since late 2010. A defnitive feasibility study of sulphide ore processing via whole ore pressure oxida- tion was completed in June 2014. Alacer is forecasting 2016 production from s oxide operations at between 150,000 and 170,000 oz at all-in sus- taining costs of $575 to $625/oz. The heap-leach operation will continue in par- allel with the planned sulphide operation as long as leachable ore is available. With the sulphide project factored into s estimated mine life now exceeds 20 years, with re- maining gold production forecast at 4 mil- lion oz. First gold pour from the sulphide project is scheduled for the third quarter of 2018, and the plant is expected to achieve its initial design throughput rate of 1.9 million mt/y by the end of 2019. Gold recovery from the sulphide plant will average 96% over the life of the mine. Twin horizontal autoclaves will provide for incremental improvements to increase the throughput rate to 2.2 million mt/y by 2021. Sulphide project capital expendi- tures are estimated at $744 million, with $697 million remaining to be spent as of May 1. The bulk of the spending is related to plant development. Sulphide mining will be based on extension of the current open pit. Life-of-mine, all-in costs are forecast at $844/oz. Project payback is forecast at three years from start of sulphide gold production. The Tanjianshan mine and plant, pictured here, are included in a two-part transaction in which Eldorado Gold will sell all of its Chinese gold assets and interests for $900 million in cash. (Photo: Eldorado Gold)

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