Skouries Project Location Mine Development Drill ready targets Road Permit boundary Village Power line 8.1 km Tunnel
10km radius
N
Olympias
Piavitsa
Stratoni Operation
Stratoni Port Facility
Skouries
Fisoka
Tsikara
1 km
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Skouries Project Overview 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
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Skouries Regional Geology Plan View Biotite Gneiss
N Mavres Petres
Schist Amphibolite Gneiss
Section
Madem Lakkos
Marble NW
Intrusive
Skouries 0
5km
Dyke Porphyry 0
200m
Schist
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Skouries Orebody and Drilling Gold grade profile
Copper grade profile Schist Amphibolite Gneiss Marble Intrusive
0
100
0
200
100
200
Metres
Metres
>1.5 g/t Au
0.7 - 1 g/t Au
>1.2% Cu
0.4 - 0.8% Cu
1 - 1.5 g/t Au
< 0.7g/t Au
0.8 - 1.2% Cu
0.2 - 0.4% Cu
â&#x20AC;˘ Porphyry mineralisation drilled at a nominal spacing of 50m www.eldoradogold.com
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Skouries Reserves & Resources Au Grade Cu Grade Contained Au Contained Cu Location
Tonnes
(g/t)
(%)
(oz)
(t)
Schist 1.06 0.60% 0.52 0.37% Amphibolite Gneiss 0.69 0.44% Marble 1.05 0.59% Intrusive 0.44 0.34% 0.15 0.17%
516,000 530,000 1,046,000 516,000 708,000 350,000
91,000 119,000 210,000 91,000 171,000 120,000
Open-Pit Proven Probable Proven & Probable Measured Indicated Inferred
15,166,000 31,816,000 46,982,000 15,333,000 49,747,000 72,307,000
Underground Proven Probable Proven & Probable Measured Indicated Inferred
19,278,000 72,102,000 91,380,000 24,147,000 157,123,000 43,470,000
1.40 0.72 0.86 1.36 0.61 0.34
0.74% 0.53% 0.57% 0.73% 0.49% 0.39%
866,000 1,678,000 2,544,000 1,055,000 3,067,000 477,000
143,000 385,000 528,000 175,000 768,000 167,000
Total Proven & Probable Total Measured & Indicated Total Inferred
138,362,000 246,350,000 115,777,000
0.81 0.67 0.22
0.53% 0.49% 0.25%
3,590,000 5,346,000 827,000
738,000 1,205,000 287,000
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% www.eldoradogold.com
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Skouries Mining Open pit
1. 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
Schist
240m
Marble Intrusive
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 geotech drilling
Underground NSR cut-off
Amphibolite Gneiss
700m Access ramp
2. Underground
Sub-levels
Haulage Shaft
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Skouries Processing Plant – ~21ktpd Single Line
Optimised throughput – Up to 8Mtpa for softer open pit ore
Paste thickener technology used which will reduce tailings land-use Ore and water return pumping costs 7-8Mtpa
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
• Overall Au Recovery ~84% • Overall Cu Recovery ~91%
Schist
Amphibolite Gneiss
Intrusive
SAG Mill
FLOTATION
Paste Thickeners
Primary Crushing To -150mm
Paste to TMF
Ball Mill
120,000tpa during O/P
COPPER/GOLD CONCENTRATE
Gravity circuit
~26% Cu ~26g/t Au
Backfill underground reduces landuse
30% of Gold
DORÉ ~ 80% Au
Saleable products www.eldoradogold.com
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Skouries Plant Design
Schist Amphibolite Gneiss Marble Intrusive
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Skouries Site Layout
Schist Amphibolite Gneiss Marble Intrusive
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Skouries Metal Production Readily saleable, clean CuAu concentrate + Au Doré Plant Throughput O/P Plant Throughput, U/G
1013 tph ROM, (softer ore) 881 tph ROM
Copper concentrate
~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
Schist Amphibolite Gneiss Marble Intrusive
Plot plan of Skouries process plant
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Skouries Operating Costs On-Site Operating Costs Open-Pit Mining Cost (per t moved) Underground Mining Cost Open-Pit Processing (8 mtpa) Underground Processing Cost (4 mtpa) G&A + Tailings Cost Off-Site Costs and Assumptions Gold Payable Copper Payable Concentrate Transport+Treatment Cost Gold Refining Cost Copper Refining Cost Cash Cost (net by-product) Open-Pit Underground LOM Average
â&#x201A;Ź/t 1.65 16.50 3.50 4.50 0.55
$/t 2.15 21.45 4.55Schist 5.85Amphibolite Gneiss 0.72Marble Intrusive
% % $/t $/oz $/lb
95% 95% 110.00 8.00 0.08
US$/oz US$/oz US$/oz
-500 190 -15
Notes: 1. Cash costs include off-site costs 2. Cash costs based on payable gold ounces 3. Assumes $1.30/â&#x201A;Ź exchange rate and $5500/t ($2.50/lb) Cu www.eldoradogold.com
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Skouries Capital Costs (2012-2016) ď&#x201A;§
Initial capital of ~$340 million required to commence plant production with open-pit ore in 2015
ď&#x201A;§
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
Infill/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$mln
1.5
6.0
7.0
3.5
0.0
18.0
Phase II U/G Development Total Development Capital
US$mln US$mln
1.0 16.0
6.0 108.5
18.5 159.5
18.5 94.0
18.5 43.0
62.5 421.0
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Skouries Development Schedule ď&#x192;&#x2DC; Commercial Production expected Q3 2015 2012 Q1 Q2 Q3 Q4
Schist
2013
Amphibolite Q1 Q2 Gneiss Q3
Q4
2014 Q1 Q2 Q3 Q4
2015 Q1 Q2 Q3 Q4
Marble
Engineering
Intrusive
Activity Description
Procurement Site Preparation Plant Construction Pit & Tailings Construction Underground Development Shaft Construction Mechanical Completion Commissioning/Start-up Commercial Production
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Skouries Future Considerations Conversion of inferred resources to measured and indicated. Schist
Potential for satellite deposits.
Amphibolite Gneiss Marble
Intrusive Clean Cu concentrate provides multiple options for marketing.
Potential delays caused by vocal minority issues. Potential winter weather delays.
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Skouries Photos -Surface Work & Archaeological Study
Schist Amphibolite Gneiss Marble Intrusive
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Skouries Photos â&#x20AC;&#x201C; Surface Clearing and Drilling
Schist Amphibolite Gneiss Marble Intrusive
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Skouries Photos â&#x20AC;&#x201C; Mill Cells at Fabrication Plant
Schist Amphibolite Gneiss Marble Intrusive
ď&#x192;&#x2DC; Now in Storage in Thessaloniki
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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 forwardlooking 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 forwardlooking 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 â&#x2039;&#x2026; nancyw@eldoradogold.com
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