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Efem�ukuru Project Update
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VANCOUVER, BC -- Paul N. Wright, President and Chief Executive Officer
of Eldorado Gold Corporation ("Eldorado" or the "Company" or "we") is
pleased to provide an update for the Efem�ukuru Gold project (the
"Project"), Turkey which is presently under construction.
The Company together with its consultants have completed a thorough
review of the Project and has updated its estimates for initial capital
investment, operating costs and schedule for commissioning. For
comparison purposes these parameters are referenced against the
feasibility study (the "Study") completed in July 2007.
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Performance Comparison
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Feasibility Study Update - August 2008
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Crude Oil $US/barrel 60 116
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Exchange Rate YTL/$US 1.36 1.20
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Capital Investment $USM 104 142
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Cash Operating Cost $/oz 227 285
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Commissioning & start-up Q4 2009 Q1 2010
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Tables 1 and 2 below describe the significant areas of capital and
operating cost increases.
Table 1: Capital Increase
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Item $US M
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Exchange Rate 18.0
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Materials 10.4
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Labour 4.1
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Scope Change 5.5
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Total $ 38.0
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Table 2: Operating Cost Increase
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Item $US/oz
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Exchange Rate 8.0
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Materials 11.0
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Labour 13.0
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Consumables 26.0
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Total $ 58.0
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In providing this update the Company has maintained the mine plan,
developed in the Study which established reserves based on cutoff grade
assuming a $530 gold price. To date there has been no estimation of
additional reserves accessible as a result of higher gold prices and
the attendant potential enhancement of operating costs.
In updating its capital estimate, the Company has continued to base its
estimate on new equipment and has not incorporated the benefit of
utilizing a selection of mobile equipment being provided by the
Company's Sao Bento mine in Brazil.
"We continue to be pleased with the progress of our Efem�ukuru Gold
project with construction underway. In addition exploration on site
continues to substantiate our sustained expectation for resource and
reserve expansion. Despite anticipated escalation in both capital and
operating costs the Efem�ukuru Gold project remains one of the most
robust gold projects presently being developed in the gold industry,"
commented Paul N. Wright, President & Chief Executive Officer.
About Eldorado
Eldorado is a gold producing, exploration and development company
actively growing businesses in Brazil, Turkey, China, Greece and the
surrounding regions. With our international expertise in mining,
finance and project development, together with highly skilled and
dedicated staff, we believe that Eldorado is well positioned to grow in
value as we create and pursue new opportunities.
ON BEHALF OF
ELDORADO GOLD CORPORATION
"Paul N. Wright"
Paul N. Wright
President & Chief Executive Officer
Certain of the statements made herein may contain forward-looking
statements or information within the meaning of the United States
Private Securities Litigation Reform Act of 1995, and forward looking
statements or information within the meaning of the Securities Act
(Ontario) . Such forward looking statements or information include,
but are not limited to statements or information with respect to
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company, or industry
results, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Forward-looking statements or information
are subject to a variety of risks and uncertainties, which could cause
actual events, or results to differ from those reflected in the
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. Specific reference is made to
"Forward Looking Statements and Risk Factors" in the Company's Annual
Information Form and Form 40-F dated March 31, 2008. Forward-looking
statements herein include statements regarding the expectations and
beliefs of management. Such factors included, amongst others the
following: gold price volatility; impact of any hedging activities,
including margin limits and margin calls; discrepancies between actual
and estimated production, between actual and estimated reserves, and
between actual and estimated metallurgical recoveries; mining
operational risk; regulatory restrictions, including environmental
regulatory restrictions and liability; risks of sovereign investment;
speculative nature of gold exploration; dilution; competition; loss of
key employees; additional funding requirements; and defective title to
mineral claims or property, as well as those factors discussed in the
section entitled "Risk Factors" in the Company's Annual Information
Form and Form 40-F dated March 31, 2008. We do not expect to update
forward-looking statements 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.
Eldorado Gold Corporation common shares trade on the Toronto Stock
Exchange (TSX: ELD) and the American Stock Exchange (AMEX: EGO). The
TSX has neither approved nor disapproved the form or content of this
release.
Contact:
Eldorado Gold Corporation
Nancy E. Woo
Vice President Investor Relations
(604) 601-6650 or 1-888-353-8166
Fax: (604) 687-4026
Email: nancyw@eldoradogold.com
Website: www.eldoradogold.com
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Copyright (c) 2008 ELDORADO GOLD CORP. (ELD) All rights reserved. For
more information visit our website at http://www.eldoradogold.com/ or
send mailto:info@eldoradogold.com
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