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Eldorado Gold allowed to test drilling in northern Greece

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

Greece has given Canada’s Eldorado Gold (TSX:ELD)(NYSE:EGO) the green light to conduct a technical study for test drilling at its Mavres Petres deposit, part of the company’s Stratoni project, in the country’s north.

The Vancouver-based miner, through its local subsidiary Hellas Gold, acquired Kassandra mines form 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.

The approved study involves some 59 drills to further explore Mavres Petres. It seeks to determine whether Stratoni mine’s life can be extended, Greece’s Minister of Environment and Energy, Kostis Hatzidakis, told local news outlet Iefimerida.

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.

Stratoni is slated to process 230,000 tonnes of ore at grades of 6% lead, 8% zinc and 157 grams per tonne silver this year. Capital investment Stratoni is expected to be between $5 and $10 million including equipment purchases and facilities upgrades.

Eldorado also has mining, development and exploration operations in its home country, Turkey, Romania and Brazil.

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