eldorado gold presentation - corponline...underground mining cost 16.50 21.45 open-pit processing (8...
TRANSCRIPT
Skouries Project Location
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N
10km radius
Stratoni Port Facility
Skouries
Piavitsa
Tsikara
Fisoka
Olympias
1 km
Stratoni Operation
Mine
Development
Drill ready targets
Road
Permit boundary
Village
Power line
8.1 km Tunnel
Skouries Project Overview
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Deposit Type Cu - Au porphyry
Initial Capex US$340 million
Cash Cost (by-product) US$-500/oz Open-pit ; US$190/oz Underground
Mining Rate 8Mtpa Open Pit ; 4.4Mtpa Underground
Mine Life 27 years
Strip Ratio 0.7 : 1.0 (w:o)
Production ~140,000oz Au, ~30,000kt Cu pa Open Pit ~100,000oz Au, ~22,000t Cu pa Underground
Processing Flotation (Cu/Au conc.) & Gravity circuit (Au doré)
Recoveries LOM average ~84% Au and ~91% Cu
Project Highlights
• EIS approved
• Outotec equipment contract complete
• Long lead items purchased and in Thessaloniki
• Basic engineering package delivered to schedule
• Construction contract being finalized
• Surface clearing initiated
Optimisation
• Potential to increase recovery from gravity circuit with additional testing
• Size, position & orientation of underground pillars to recover high grade ore
• Optimize pit ramp design to reduce operating costs
Upside
• Conversion of Inferred Resources to Indicated – priority on in-pit material
• Exploration potential with 2 drill ready target areas, Fisoka and Tsikara within 8km of Skouries
• Additional open-pitable resources could benefit Skouries by deferring underground capital
Skouries Regional Geology
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Biotite Gneiss
Schist
Amphibolite Gneiss
Marble
Intrusive
Porphyry
Schist
Dyke
0 200m
Section
NW
Plan View
Skouries
5km 0
N Mavres
Petres Madem Lakkos
Skouries Orebody and Drilling
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Schist
Amphibolite Gneiss
Marble
Intrusive
>1.5 g/t Au
1 - 1.5 g/t Au < 0.7g/t Au
0.7 - 1 g/t Au >1.2% Cu
0.8 - 1.2% Cu 0.2 - 0.4% Cu
0.4 - 0.8% Cu
0 100 200
Metres
Gold grade profile
0 100 200
Metres
Copper grade profile
• Porphyry mineralisation drilled at a nominal spacing of 50m
Skouries Reserves & Resources
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Schist
Amphibolite Gneiss
Marble
Intrusive
Notes:
• Mineral Resources are inclusive of Mineral Reserves (100%)
• Mineral Reserves were estimated using an Au price of US$1,000 per ounce and a Cu price of US$2.50 per lb.
• Mineral Resources were estimated using an Au price of US$1,200 per ounce and a Cu price ofUS$3.50/lb.
• The values for tonnages, grades and contained ounces have been rounded.
• Open Pit dilution averages 0% and extraction is estimated to be 100%.
• Underground dilution averages 3.5% and extraction is estimated at 95%
Au Grade Cu Grade Contained Au Contained Cu
Location Tonnes (g/t) (%) (oz) (t)
Open-PitProven 15,166,000 1.06 0.60% 516,000 91,000Probable 31,816,000 0.52 0.37% 530,000 119,000
Proven & Probable 46,982,000 0.69 0.44% 1,046,000 210,000
Measured 15,333,000 1.05 0.59% 516,000 91,000Indicated 49,747,000 0.44 0.34% 708,000 171,000Inferred 72,307,000 0.15 0.17% 350,000 120,000
UndergroundProven 19,278,000 1.40 0.74% 866,000 143,000Probable 72,102,000 0.72 0.53% 1,678,000 385,000
Proven & Probable 91,380,000 0.86 0.57% 2,544,000 528,000
Measured 24,147,000 1.36 0.73% 1,055,000 175,000Indicated 157,123,000 0.61 0.49% 3,067,000 768,000Inferred 43,470,000 0.34 0.39% 477,000 167,000
Total Proven & Probable 138,362,000 0.81 0.53% 3,590,000 738,000Total Measured & Indicated 246,350,000 0.67 0.49% 5,346,000 1,205,000Total Inferred 115,777,000 0.22 0.25% 827,000 287,000
Skouries Mining
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Schist
Amphibolite Gneiss
Marble
Intrusive
Open pit
• Depth 240m; Ore 47Mt; Waste 35Mt
• Strip ratio 0.7:1.0 (w:o)
• Throughput 8.0 Mtpa
• Average grade 0.69 g/t Au; 0.44% Cu
• Pit design based on preliminary geotech, further optimisation possible
• Final depth determined by iterative calculation of total NPV with underground and minimisation of land-use
• Evaluating economics of owner vs contractor mining
Underground
• Throughput 4.4mtpa
• Sub-level open-stoping
• Average grade 0.86 g/t Au; 0.57% Cu
• Optimisation of design including size, position & orientation of underground pillars with additional geo-tech drilling
1. Open Pit
240m
700m
Un
der
gro
un
d N
SR c
ut-
off
2. Underground
Access ramp
Haulage Shaft
Sub-levels
Skouries Processing Plant – ~21ktpd Single Line
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Schist
Amphibolite Gneiss
Intrusive
Ore
Paste to TMF
Primary Crushing To -150mm
SAG Mill
COPPER/GOLD CONCENTRATE
~26% Cu
~26g/t Au
Gravity circuit
DORÉ ~ 80% Au
Ball Mill
Paste Thickeners
FLOTATION
Saleable products
30% of Gold
7-8Mtpa
120,000tpa during O/P
Optimised throughput – Up to 8Mtpa for softer open pit ore
Paste thickener technology used which will reduce tailings land-use and water return pumping costs
Plant sited at location with best geotechnical stability leading to reduced ground works
Compact layout
Improved gold gravity technology for doré production is expected to boost recovery
Efficient underground and open pit ore transport system
Backfill underground reduces land-use
• Overall Au Recovery ~84% • Overall Cu Recovery ~91%
Skouries Plant Design
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Schist
Amphibolite Gneiss
Marble
Intrusive
Skouries Site Layout
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Schist
Amphibolite Gneiss
Marble
Intrusive
Skouries Metal Production
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Schist
Amphibolite Gneiss
Marble
Intrusive
Plant Throughput O/P Plant Throughput, U/G
Copper concentrate
1013 tph ROM, (softer ore) 881 tph ROM
~120,000 tpa average OP ~88,000 tpa average U/G ~2% w/w to final concentrate
Payable copper ~30,000 t/year OP ~22,000 t/year U/G
Payable gold (inc. doré) ~145,000 oz/year OP ~100,000 oz/year U/G
Doré production ~50,000 oz/year OP ~35,000 oz/year U/G
Concentrate copper grade ~26%
Concentrate gold grade ~26g/t
Readily saleable, clean CuAu concentrate + Au Doré
Plot plan of Skouries process plant
Skouries Operating Costs
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Schist
Amphibolite Gneiss
Marble
Intrusive
On-Site Operating Costs €/t $/t
Open-Pit Mining Cost (per t moved) 1.65 2.15
Underground Mining Cost 16.50 21.45
Open-Pit Processing (8 mtpa) 3.50 4.55
Underground Processing Cost (4 mtpa) 4.50 5.85
G&A + Tailings Cost 0.55 0.72
Off-Site Costs and Assumptions
Gold Payable % 95%
Copper Payable % 95%
Concentrate Transport+Treatment Cost $/t 110.00
Gold Refining Cost $/oz 8.00
Copper Refining Cost $/lb 0.08
Cash Cost (net by-product)
Open-Pit US$/oz -500
Underground US$/oz 190
LOM Average US$/oz -15
Notes:
1. Cash costs include off-site costs
2. Cash costs based on payable gold ounces
3. Assumes $1.30/€ exchange rate and $5500/t ($2.50/lb) Cu
Skouries Capital Costs (2012-2016)
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Initial capital of ~$340 million required to commence plant production with open-pit ore in 2015
Additional ~$63 million will be spent on underground development.
Item Unit 2012 2013 2014 2015 2016 Total
Capitalized Waste-Stripping US$mln 0.0 0.0 10.5 13.0 15.0 38.5
Road Development & Other US$mln 6.5 9.0 5.5 0.0 0.0 21.0
Open-Pit Equipment US$mln 0.0 22.0 17.0 6.0 0.0 45.0
Flotation plant US$mln 5.0 60.0 65.0 45.0 0.0 175.0
Tailings ponds US$mln 0.0 1.5 6.5 8.0 9.5 25.5
Infil l/Geotech Drill US$mln 1.5 3.5 0.5 0.0 0.0 5.5
Mill Equipment US$mln 0.5 0.5 29.0 0.0 0.0 30.0
EPCM US$mln 1.5 6.0 7.0 3.5 0.0 18.0
Phase II U/G Development US$mln 1.0 6.0 18.5 18.5 18.5 62.5
Total Development Capital US$mln 16.0 108.5 159.5 94.0 43.0 421.0
Skouries Development Schedule
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Schist
Amphibolite Gneiss
Marble
Intrusive
Commercial Production expected Q3 2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Engineering
Procurement
Site Preparation
Plant Construction
Pit & Tailings Construction
Underground Development
Shaft Construction
Mechanical Completion
Commissioning/Start-up
Commercial Production
2012 2013 2014 2015
Act
ivit
y D
escr
ipti
on
Skouries Future Considerations
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Schist
Amphibolite Gneiss
Marble
Intrusive
Conversion of inferred resources to measured and indicated.
Potential for satellite deposits.
Clean Cu concentrate provides multiple options for marketing.
Potential delays caused by vocal minority issues.
Potential winter weather delays.
Skouries Photos -Surface Work & Archaeological Study
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Schist
Amphibolite Gneiss
Marble
Intrusive
Skouries Photos – Surface Clearing and Drilling
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Schist
Amphibolite Gneiss
Marble
Intrusive
Skouries Photos – Mill Cells at Fabrication Plant
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Schist
Amphibolite Gneiss
Marble
Intrusive
Now in Storage in Thessaloniki
Certain of the statements made in this Presentation may contain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information
within the meaning of applicable Canadian securities law. These forward-looking statements or information include, but are not limited to statements or information with respect to financial disclosure, estimates of
future production, the future price of gold, estimations of mineral reserves and resources, estimates of anticipated costs and expenditures, development and production timelines and goals and strategies.
We have made numerous assumptions about the forward-looking statements and information contained herein, including among other things, assumptions about the price of gold, anticipated costs and
expenditures and our ability to achieve our goals. Even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can
be no assurance that the forward-looking statement or information will prove to be accurate.
Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Should one or
more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. Such risks,
uncertainties and other factors include, among others, the following: gold price volatility; risks of not meeting production and cost targets; discrepancies between actual and estimated production, mineral reserves
and resources and metallurgical recoveries; mining operational and development risk; litigation risk; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment;
currency fluctuations; speculative nature of gold exploration; global economic climate; dilution; share price volatility; the risks that the integration of acquired businesses may take longer than expected; the
anticipated benefits of the integration may be less than estimated and the cost of acquisition may be higher than anticipated; the ability to complete acquisitions; competition; loss of key employees; additional
funding requirements; share price volatility; community and non-governmental actions and defective title to mineral claims or property, as well as those factors discussed in our most recent interim and annual
management discussion and analysis and in the sections entitled "Risk Factors" in the Company's Annual Information Form & Form 40-F dated March 30, 2012, including the risk factors incorporated by reference
in such circular. Should one or more of these risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-
looking statements and information.
Although we have attempted to identify factors that would cause actual actions, events or results to differ materially from those described in forward-looking statements and information, there may be other factors
that cause actual results, performances, achievements or events to not be as anticipated, estimated or intended. Also many of the factors are beyond our control. There can be no assurance that forward-looking
statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipate in such statements. Accordingly you should not place undue reliance on forward-
looking statements or information.
Except as required by law, we do not expect to update forward-looking statements and information continually as conditions change and you are referred to the full discussion of the Company's business contained in
the Company's reports filed with the securities regulatory authorities in Canada and the U.S. All forward-looking statements and information contained in this presentation are qualified by this cautionary statement.
Cautionary Note to U.S. Investors: Mineral Reserves and Mineral Resources - The terms "mineral reserve", "proven mineral reserve" and "probable mineral reserve" referred to in the Company's disclosure are
Canadian mining terms as defined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and
Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council as amended from time to time by the CIM. These definitions differ from the definitions in the United States
Securities & Exchange Commission ("SEC") Guide 7. Under SEC Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, the three-year historic average price is used in any reserve or
cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.
The terms "mineral resource", "measured mineral resource", "indicated mineral resource", "inferred mineral resource" used in the Company's disclosure are Canadian mining terms as defined in accordance with
National Instrument 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the CIM Standards. Mineral resources which are not mineral reserves do not have demonstrated economic
viability.
While the terms "mineral resource", "measured mineral resource," "indicated mineral resource", and "inferred mineral resource" are recognized and required by Canadian regulations, they are not defined terms under
standards in the United States and normally are not permitted to be used in reports and registration statements filed with the SEC. As such, information contained in the Company's disclosure concerning
descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by U.S companies in SEC filings. With respect to "inferred mineral resource" there
is a great amount of uncertainty as to their existence and a great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be
upgraded to a higher category. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.
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Thank You TSX: ELD NYSE: EGO
Total shares outstanding (as of June 30, 2012): 712.9 M
Investor Relations: Nancy Woo (604) 601-6650 ⋅ [email protected]
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