Eldorado Gold Corporation‘s (TSE: ELD) (NYSE: EGO) preliminary economic assessment (PEA) for the Lamaque complex in Quebec revealed the potential to extend the life of the mine by nine years, and incrementally increase gold production by 1.5 million ounces.
The company also released an updated technical report on Thursday , including the updated life of mine plan based on mineral reserves from the Triangle, Ormaque and Parallel deposits. The Lamaque complex is within the Abitibi region.
In contrast, the reserve case outlined an eight-year mine life with 1.2 million ounces of gold production. The gold producer emphasized that the PEA case remains preliminary and relies on inferred mineral resources based on speculative geology.
The PEA case for extending the mine’s life and increasing production relies on maximizing the installed capacity of the Sigma mill and infrastructure. Eldorado plans to achieve this by adding a paste plant and expanding tailings capacity, allowing the Ormaque deposit to enter production.
The company also benefits from strong collaboration and support from the Val-d’Or communities, expecting a transparent and predictable regulatory environment in Québec, a Tier 1 mining jurisdiction.
George Burns, the CEO of Eldorado, said that this development is another major milestone for the Lamaque Complex.
“After acquiring this asset in 2017, we successfully brought the Triangle deposit into commercial production in 2019, and it has since produced one million ounces of gold,” Burns said.
“With the development of the Ormaque deposit, we will be adding a second underground mine to the Lamaque Complex, which provides operational flexibility and efficiency as we leverage the existing plant and infrastructure.”
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Drilling teams continue to explore advanced targets
Significant exploration potential could further expand mineral resources within existing deposits. The Ormaque deposit remains open at depth and laterally in both its upper and lower sections, while the Triangle deposit remains open at depth. Drilling teams continue to explore Plug No. 4 and other advanced targets across the property.
With a large, under-explored land package in the Val-d’Or area, the company actively evaluates exploration opportunities across the Lamaque complex, its contiguous Bourlamaque property, and the broader Abitibi region.
“Based on the existing resource base and favourable findings of the report, we maintain an optimistic view of the long-term potential at the Lamaque complex,” said Burns.
“Our skilled and dedicated workforce, strategic position in the Abitibi region and collaborative relationships with First Nations and the local community, positions us to deliver sustainable, long-term benefits for the Val-d’Or region, while continuing to create value for our shareholders.”
Eldorado plans to continue its exploration activities at the Lamaque complex into 2025. The gold and base metals producer will focus on resource conversion drilling at Lower Triangle, Ormaque, and Plug No. 4, as well as testing for extensions at Ormaque and exploring earlier-stage targets near the Lamaque complex infrastructure.
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joseph@mugglehead.com
