Section view of the proposed decline from the Sigma mill to the Triangle mine. (Photo: Eldorado Gold)

Eldorado Gold Corp. is commencing construction of a 3-kilometer (km) decline from the Sigma mill to the 405-meter (m) level of the Triangle mine. The company also provided an update on several positive developments in Greece.

“We are pleased to begin construction of the decline at Lamaque this summer,” President and CEO George Burns said. “This is a project that we have been advancing for nearly a year and is another step toward further production growth and continued value creation at Lamaque.”

The fully permitted decline project represents a relatively modest investment that is expected to provide multiple near-term and long-term benefits as the company continues to grow production at Lamaque. Detailed engineering and site preparations for the decline will commence in June and surface construction on the portal will begin in the third quarter of 2020. The decline is expected to be completed by the first half of 2022 at an estimated cost of US$24 million.

The company said it is evaluating the possible addition of an underground crushing and conveying system as well as a potential mill expansion. An update outlining the path forward at Lamaque is expected in the fourth quarter of 2020.

Benefits to the decline include eliminating surface rehandling and haulage of the ore from the Triangle mine to the Sigma mill; reducing carbon emissions, costs, and removing haulage traffic from the public road network; reducing the energy requirements for mine ventilation; supplying a means of secondary egress and ventilation to the Triangle mine, increasing safety underground; providing underground access for lower cost exploration in the prospective area between the Triangle mine and the historic Sigma and Lamaque mines, including further drilling of the Plug 4 and Parallel deposit and the Ormaque zone; and facilitating increased future production from the Triangle mine (contingent on continued reserve expansion) and allowing for mining of the Parallel deposit.

The company also provided an update on several recent developments in Greece. Eldorado completed a purchase of the 5% of Hellas Gold shares that were owned by Ellaktor. The company is now the sole shareholder in Hellas Gold. The New Environmental Law 4685/2020 was passed by the Greek Parliament in May, which modernizes Greek legislation to European Union standards. There was also a relocation of certain archeological items from Skouries to commence per the local archeological chamber’s instructions.