Perama Hill - Greece
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2% NSR 1,447,000 oz M&I / 239,000 oz Inf. (Au)1 Eldorado Gold Corporation |
Franco-Nevada holds a royalty in the Perama Hill project which is located in the Thrace region of northeastern Greece. The new operator is Eldorado Gold through its acquisition in 2008 of Frontier Pacific Mining. The Perama Hill Project is a surface, high grade oxide gold deposit which, according the former operator, Frontier Pacific, could generate a robust rate of return with little technical risk. Eldorado has not yet released any parameters for Perama Hill, however, project details reported by Frontier Pacific were:
- Dec. 31 2006 Resources: 11.7 Mt @ 3.62g/t Gold and 8.2 g/t Silver
- Resources: 1.45 million ounces Gold (1.2M oz recoverable)2
- Strip Ratio: 0.4:1
- Recovery: 90% Gold and 60% Silver
- Project Life: 9 years
- Average Annual Production: 131,000 oz Gold (170,000 oz/year first 3 years)
- Capital Investment: US$97 million including sustaining capital
- Cash Operating Costs: $171/oz
Permitting remains the largest challenge. Eldorado is reviewing the requirements of the environmental impact study under the new Pre-Approval Act. The Company's efforts will be focused on the successful management of the Environmental Impact Study process and approval of the Environmental Terms of Reference (ETR). Once the Permit ETR has been approved, the various construction and operating permits can be applied for and construction of the project can begin.
1 According to Eldorado Gold corporate presentation dated September 25, 2008
2 As per Metallica Resources Development Plan