Eldorado finds new Canadian mine may be richer than thought

The Lamaque mine and Bourlamaque mining village at Val-d’Or, Quebec. (Image courtesy of Société des musées du Québec.)

Canadian bullion producer Eldorado Gold (TSX:ELD)(NYSE:EGO) said on Thursday that exploration carried out at its Lamaque mine in Quebec so far this year revealed high grade mineralization beyond the 2018 resource model in the lower portion of the deposit, as well as more ore clusters.

The Vancouver-based company, which kicked off commercial production at Lamaque at the end of March, said that surface exploration drilling at the property has focused on better defining the resource potential in the less-explored lower portion of the newly discovered Triangle gold deposit.

Exploration carried out at Quebec’s Lamaque project has revealed high grade mineralization beyond the 2018 resource model as well as more ore clusters

That resource, located in the Val d’Or mining camp, at the eastern end of the prolific Southern Abitibi Greenstone Belt, now shows continuity of mineralization to similar depths as the nearby historic Sigma mine, Eldorado’s CEO George Burns said.

He noted the exploration results unveiled today would likely allow the company to expand mineral resources next year.

“At the same time our underground drilling continues to focus on conversion of existing resources to reserves in the C5 and lower C4 mineralized zones,” Burns said in the exploration update.

Lamaque, which Eldorado grabbed after acquiring Integra Gold in 2017, has an initial mine life of seven years and is expected to produce between 100,000-110,000 ounces of gold this year.

The underground mine — the company’s first operation in Canada — is set to ramp up output to between 125,000 and 135,000 ounces of gold in 2020 and 2021.

Eldorado, which also has mining, development and exploration operations in Greece, Romania, Serbia and Brazil, said earlier this week that efforts to secure key permits for its Skouries gold-copper project in Greece look like they are about to pay off.