Eldorado sees growing potential at Lamaque mine

Stratoni is an underground, silver-lead-zinc mine located in the Halkidiki Peninsula in northern Greece. (Image courtesy of Eldorado Gold.)

Canada’s Eldorado Gold (TSX:ELD)(NYSE:EGO) said on Friday it had found resource growth potential at the Triangle deposit of its Lamaque gold mine in Quebec, which backs up plans to expand the operation underground.

Earlier this year, Eldorado had to halt the mine to comply with the provincial government’s restrictions related to covid-19.

Lamaque, which began commercial operations last year, has an initial mine life of seven years and its output is set to increase to 125,000-135,000 ounces of gold in 2020 and 2021. 

The Vancouver-based miner said the latest results of its brownfields exploration drilling programs in Turkey and Greece also extended known mineralization near current or planned development.

At Efemcukuru, in Turkey, the miner will continue its resource expansion drilling for the remainder of the year, focusing on the Kokarpinar vein system. A resource conversion drilling program is planned for 2021. 

In Greece, Eldorado disclosed it had recently experienced a short-term reduction in operations at its Olympias mine, caused by limited workforce availability due to the global pandemic. The miner noted its Stratoni facility remains temporarily closed, but it said it is going ahead with a technical study for test drilling at its Mavres Petres deposit, part of Stratoni.

The gold miner, through its local subsidiary Hellas Gold, acquired Kassandra mines from the state in 2004. The property includes the Stratoni silver-lead-zinc mine, which is made up of two deposits: Madem Lakkos and Mavres Petres.

Greece and Eldorado have been in talks over a revised investment plan that would bring the government higher royalties from mining projects. It is also expected to boost jobs.

The company also has mining, development and exploration operations in Romania  and Brazil.

9 0