Olympias
Phase II commissioning
continued and commercial production is now expected by the end
of 2017, construction at Skouries
continued, with production now targeted for 2020, reported Eldorado Gold in the last financial and operational results for the second quarter announcement.
"It was an eventful second quarter with site tours to Greece to demonstrate our continued progression of development and news of the Integra acquisition," said George Burns , Eldorado's President and Chief Executive Officer. "Commissioning at Olympias continues, although we now expect to declare commercial production by the end of 2017. Skouries development is progressing as we continue to endeavour to work with the Greek government to advance this key project. News of ounce recovery deferral at Kisladag was unexpected, however the operations and engineering groups have implemented corrections to solution chemistry that are expected to achieve normal recovery rates."
"I am pleased that the Integra acquisition has closed. We proudly welcomed our new employees in Quebec to our team earlier this month and we look forward to expanding our production base within this highly prospective region going forward."
GREECE
Stratoni
Concentrate production of 10,157 tonnes for the second quarter was lower year over year due to a reduction in ore tonnes processed and slightly lower mined grades (6.1% Pb, 9.4% Zn, 159 g/t Ag). The expected reduced grade and tonnage performance reflects the continuing depletion of the current mineable ore reserves remaining at the Mavres Petres mine.
Olympias
Olympias Phase II was substantially completed during the quarter. Wet commissioning of the plant began in early May. The plant operated under commissioning control through the remainder of the month and under operations control for trial production in June. Gold production of 2,052 ounces for the quarter is considered pre-commercial. Commissioning is progressing well, with lead/silver, zinc and gold concentrates being moved into market, however a bottleneck in the tailings filtration stage is limiting capacity to approximately 60% of design throughput. An engineering solution is being advanced and is expected to be implemented during the third quarter. Commercial production is now expected by the end of the year.
Capital spending for the quarter at Olympias was $27.1 million , with the majority deployed for continued underground development and rehabilitation in the Olympias underground, construction of the Phase II plant and construction works in the Kokkinolakkas tailings management facility.
Due to this slower than expected start-up, 2017 guidance at Olympias has been reduced from 40,000 to 50,000 ounces to 20,000 to 30,000 ounces.
Skouries
Work continued in the second quarter with the onset of better weather conditions. Building erection work commenced with key covered storage in place by quarter end. Tree clearing in the tailings dam area began along with continued construction of the access road through the base of the dam, as well as enabling works that are key for the start of the tailings embankment construction. Earthworks also continued on the tailings thickener foundations and the stockpile dome embankments, with both close to final grade by quarter end.
Total capital expenditure for the quarter was $18.6 million . Capital expenditure continues to lag behind expectations and it is now estimated that $80-$90 million will be spent in 2017 compared to the originally estimated $170-$200 million . Delays in capital expenditure are attributable to the slower start to the year in combination with ongoing delays in the granting of required permits by the Greek government to enable ramp-up in construction activities. Production is now targeted for 2020.
Perama Hill
The project remains on care and maintenance pending receipt of the Environmental Impact Study permit.
