Eldorado Gold Announces New Lamaque Technical Study Highlighting Significant Increased Economic Upside
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NEWS RELEASE
TSX: ELD NYSE: EGO February 24, 2022
Eldorado Gold Announces New Lamaque Technical Study
Highlighting Significant Increased Economic Upside
VANCOUVER, BC – Eldorado Gold Corporation (“Eldorado”, the “Company” or “We”) is
pleased to announce the results of a new Technical Study (the “Study”) on its wholly-owned
Lamaque Project, located in Val d’Or, Quebec. The Lamaque Project is comprised of three
separate but contiguous properties: Lamaque South (containing the Upper Triangle zones, Lower
Triangle zones, and the deposits of Parallel and Ormaque), Sigma-Lamaque and Aumaque (see
Figures 1 and 2). The Upper Triangle zones within Lamaque South are currently being mined with
access by surface ramp. The Study includes an update to the current operation, updated
economics on the Upper Triangle zones (zones C1 through C5), as well as preliminary economic
assessments on the inferred resources in the Lower Triangle zones (zones C6 through C10) and
the Ormaque deposit.
Key Highlights
• Base case economics using a gold price assumption of $1,500 per ounce:
o Upper Triangle Reserves NPV5%1 of $459 million
o Lower Triangle Inferred Resource NPV5% of $162 million and IRR2,3 of 33%
o Ormaque Inferred Resources NPV5% of $197 million and IRR 39%2,4
• Upside economics using spot gold price assumption of $1,900 per ounce:
o Upper Triangle Reserves NPV5% of $673 million
o Lower Triangle Inferred Resource NPV5% of $295 million and IRR of 48%
o Ormaque Inferred Resources NPV5% of $285 million and IRR 45%
• Key growth opportunities: High-grade inferred resources (Lower Triangle zones and
Ormaque deposit) provide potential for significant production increases and opportunities for
resource expansion. Based on successful conversion of inferred resources at Lower Triangle
and Ormaque, mining would commence in these areas in 2026. With multiple concurrent
centers of production, this represents a de-risked approach to extending the production profile
at Lamaque.
• Increased gold production to over 190,000 ounces per year based on the Upper Triangle
reserves; and sustaining over 180,000 ounces per year with production from Lower Triangle
Inferred and Ormaque inferred resources.
• Extended mine life with ~5.5 years of production from Upper Triangle reserves, and potential
for an additional ~8.5 years of mine life from Lower Triangle and Ormaque inferred resources.
• Well-positioned in the prolific Abitibi Greenstone Belt: In 2021, Eldorado expanded its
land position by over 500% with the acquisition of QMX Gold (referred to as the Bourlamaque
property), which is in close proximity to the Lamaque Project.
• Readily equipped: Robust surface infrastructure is already in place at the Triangle mine. To
support current operations and continue mining the Upper Triangle Reserves, additional
infrastructure is required on the Sigma tailings, and the mine dewatering systems.
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• Permitting advancing and in compliance: The Lamaque Project is fully permitted under
Federal and Provincial regulations. The project is in compliance regarding environmental
quality and is regularly assessed by Provincial authorities in accordance with the
Environmental Quality Act (“EQA”) of Quebec. Discussions with Provincial Ministries about
making changes to the existing permits have commenced with Provincial Ministries and are
expected to be a normal course.
• Strong collaboration and support from the Val-d’Or communities and a transparent and
predictable regulatory environment makes Quebec a world-class mining jurisdiction.
1 After-tax net present value at a discount rate of 5%. 2 After-tax internal rate of return. 3 NPV and
IRR for Lower Triangle is calculated on the differential after-tax cash flow between the Lower
Triangle + Upper Triangle (B) and the standalone Upper Triangle case (A). 4 NPV and IRR for
Ormaque is calculated on the differential after-tax cash flow between the Ormaque + Lower
Triangle + Upper Triangle (C) and (B).
“The Lamaque Project has been an outstanding acquisition for Eldorado Gold,” said George
Burns, Eldorado’s President and CEO. “We acquired the asset for approximately $360 million in
2017, published a PFS in 2018, and reached commercial production 12-months later. Since then,
we have demonstrated a track record of success by replacing reserves year -over-year and
exceeding peak production levels beyond the 2018 Pre-Feasibility Study. Additionally, we have
more than doubled the inferred resource base since the acquisition. The results of the Technical
Study showcase the growing value of Lamaque and the significant upside potential from the
Lower Triangle zones and Ormaque deposit.”
“With the Triangle-Sigma decline project now complete, we are focused on an exploration drift
and resource conversion at Ormaque,” adds Burns. “Our 2022 exploration strategy is also focused
on resource expansion at Ormaque and in the Upper and Lower Triangle zones and testing new
targets within our expanded license area to support continued growth at Lamaque. Furthermore,
our strategic positioning in the Abitibi region gives us additional exposure to the potential upside
in the resource-rich area. We have a safe, successful track record of project execution and project
delivery, which is a testament to our team. We are fortunate to have a dedicated and experienced
workforce whose commitment to project delivery has been unwavering. Our strategic position in
the region and our strong, collaborative local relationships will allow us to continue to drive
sustainable, long-term benefits for the community in Val -d’Or, and continue to deliver value for
our shareholders.”
Technical Study Highlights1
As outlined in the table below, results from the Technical Study present the mining of three
separate zones:
1. Feasibility-level update to the current operation centered on the Mineral Reserves in the
Upper Triangle zones and Parallel deposit;
2. Preliminary economic assessment (“PEA”) of Inferred Resources from the Lower Triangle
zones; and
3. PEA of Inferred Resources from the Ormaque deposit.
2022 Technical Study
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Reserves Case Preliminary Economic
Assessments1
Upper Triangle
Lower Triangle
Inferred
Resources
Case
Ormaque Inferred
Resources Case
Production
Life of Mine (LOM) ~5.5 years
remaining LOM
~4.5 years
potential LOM
extension
~3.5 years
potential LOM
extension
Average Annual Gold Production over
LOM (oz) 187,000 180,000 181,000
Average Annual Mill Feed (ktpa) 825 846 872
Incremental Incremental
Average Gold Grade (g/t) 7.3 6.4 6.9
Recovery (%) 96.5 95.0 96.5
Operating Costs3 Incremental Incremental
Annual Average Cost ($M) 111.9 113.3 122.6
Average cost ($/tonne ore) 136 129 143
Average cost ($/oz Au) 597 656 670
Capital Costs Incremental Incremental
Growth Capital ($M) 70 86 20
Sustaining Capital ($M) 230 239 88
Total Capital ($M) 300 325 108
Economic Analysis Incremental Incremental
NPV @ 5% discount rate ($M) 459 162 197
IRR (%) n.a. 2 33 39
Gold price assumption ($/oz) 1,500 1,500 1,500
1 The Inferred Resources Cases are PEAs. As the PEAs supporting the Ormaque Inferred Resources and
the Lower Triangle Inferred Resources consider the potential economic viability of developing the separate
satellite deposit that comprises the Ormaque Inferred Resources and the separate zones that comprise the
Lower Triangle Infer red Resources in conjunction with the main zones of the Upper Triangle Reserves
development project, these PEAs will not impact the results of the economic/financial assessment of the
Upper Triangle Reserves.
2 The project’s cashflow remains positive in each year, as such there is no calculated internal rate of return
or payback period. Capital expenditures are part of ongoing operational development and are funded by
ongoing gold sales and there are no external funding requirements.
3 These measures are non-IFRS measures. See the section ‘Non-IFRS Measures’ at the end of this press
release and in Eldorado’s December 31, 2020 MD&A for explanations and discussion of these non -IFRS
measures.
The PEAs of Inferred Resources from the Lower Triangle zones and the Ormaque deposit are distinct
from and do not affect the feasibility-level update to the current operations on the Mineral Reserves in
the Upper Triangle zones and Parallel deposit.
Review of Operations
Eldorado owns the Lamaque Project in Quebec, Canada through its wholly-owned subsidiary,
Eldorado Gold Québec. The deposits at Lamaque are currently , and will continue to be , mined by
underground methods. In 2022, over 815,000 tonnes of ore at an average gold grade of 6.75 grams
per tonne are expected to be mined and process ed from the Upper Triangle zones. 2022 cash
operating costs per ounce 1 of $620 to $670 reflect increased mining and processing costs due to
higher throughput and cost inflation.
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1 Cash operating costs per ounce is a non -IFRS measure. Certain additional disclosures for non -IFRS
measures have been incorporated by reference and additional detail can be found at the end of this press
release and in the section ‘Non-IFRS Measures’ of Eldorado’s December 31, 2020 MD&A.
Property Description
The Lamaque Project is situated near the city of Val -d’Or in the province of Québec, Canada,
approximately 550 km northwest of Montréal. Val-d’Or has been a highly active mining area for a
century, with significant mineral deposits found throughout the region. Gold has been produced from
the historic Sigma and Lamaque mines starting in the early 1930’s. More recently, Eldorado acquired
the Lamaque Project through the purchase of Integra Gold Corp in 2017. Eldorado achieved
commercial production on March 31, 2019, from ore mined at the Upper Triangle zones and processed
at the refurbished Sigma mill.
Since the acquisition of Integra Gold Corp. by Eldorado in 2017, significant exploration activities have
been conducted at both Upper Triangle and Lower Triangle zones as well as other deposits and targets
including Plug #4, Parallel, Aumaque, South Gabbro, Lamaque Deep, Vein #6, P5 Gap, Sigma East
Extension and Sector Nord. In January 2020, Eldorado announced the discovery of the Ormaque
deposit. Eldorado continues to explore the Lamaque property and adjacent Bourlamaque property
extensively.
Figure 1: Location of the Lamaque Project with respect to the City of Val-d’Or
Figure 2: Long-section of the Lamaque Project
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Review of Economic Analysis1
The Upper Triangle Reserves NPV5% of $459 million, based on $1,500 per ounce gold, has increased
significantly over the 2018 Pre-Feasibility Study (“PFS”). The Upper Triangle Reserves feasibility-level
economic analysis includes Reserves from the Parallel deposit.
Separately, the PEA for the Lower Triangle Inferred Resource, based on $ 1,500 per ounce gold ,
supports an additional NPV5% of $162 million.
Separately, the PEA for the Ormaque Inferred Resource, based on $1,500 per ounce gold, indicates
an additional NPV5% of $197 million.
The economic models were subjected to sensitivity analyses to determine the effects of changing
metal prices, capital, and operating expenditures on financial returns. This analysis showed that the
project economics are robust and are most sensitive to metal prices.
Reserve Case and Inferred Resource Cases After-Tax NPV(5%) and IRR Sensitivity
Sensitivity Table – Gold Price
Reserves Case Inferred Resources Case
Upper Triangle Lower Triangle Ormaque
Gold Price
($/oz)
After-Tax NPV
($M)
After Tax NPV
($M)
IRR
(%)
After Tax NPV
($M)
IRR
(%)
$1,300 318 81 21 137 31
$1,500 (base case) 459 162 33 197 39
$1,900 (spot) 673 295 48 285 45
$2,000 722 328 51 307 47
The PEAs supporting the Lower Triangle Inferred Resource and the Ormaque Inferred Resource ,
consider the potential economic viability of developing the separate zones that comprise the Lower
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Triangle Inferred Resource and the separate satellite deposit tha t comprises the Ormaque Inferred
Resource in conjunction with the main zones of the Upper Triangle Reserves development project.
1 See “Notes on Lower Triangle Inferred and Ormaque Inferred PEAs” below.
Capital Costs
As outlined in the table below, the initial growth capital required for both the reserves and inferred
cases is modest.
Preliminary Economic Assessments
Reserves Case Inferred Resources Case
Upper Triangle Lower Triangle Ormaque
Growth Capital ($M) 70 86 20
Sustaining Capital ($M) 226 243 88
Total Capital ($M) 296 329 108
Operating Costs1
The table below provides the operating costs for the Upper Triangle Reserves Case and the Lower
Triangle Inferred Case and the Ormaque Inferred Case . The operating costs estimate for the Upper
Triangle Reserves Case average $13 6 per tonne ore, the incremental Lower Triangle Inferred
Resources Case average $129 per tonne mineralized material, and the incremental Ormaque Inferred
Case averages $143 per tonne ore. The operating cost estimates include mining, processing, and
general and administrative costs.
Preliminary Economic Assessments
Reserves Case Inferred Resources Case
Upper Triangle Lower Triangle Ormaque
Annual Average Cost ($M) 112 113 123
Average cost ($/tonne ore) 136 129 143
Average cost ($/oz Au) 597 656 670
All-in Sustaining Cost 829 979 819
1 These measures are non-IFRS measures. See the section ‘Non-IFRS Measures’ at the end of this press
release and in Eldorado’s December 31, 2020 MD&A for explanations and discussion of these non -IFRS
measures.
Optimization and Future Opportunity
As part of an overall growth strategy in the Abitibi area, Eldorado continues to evaluate exploration
and development opportunities for high-grade ore that could be mined and trucked to the Sigma mill
as well as bulk mining opportunities that would entail upgrading the Sigma mill to its permitted capacity
of 5,000 tonnes per day.
Another area for opportunity highlighted in the Technical Study was the use of alternate materials
handling technologies for the Lower Triangle zones. Materials handling trade-off studies at a PEA level
indicate a potential for reducing costs, reducing equipment and ventilation requirements, while at the
same time reducing greenhouse gas emissions. Further studies will be carried out to increase the level
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of confidence in the costs and benefits of technologies evaluated, which include vertical conveyors,
conventional conveying, or the use of battery electric vehicle trucks.
Geology and Mineralization
There are three deposits: i) Triangle, consisting of zones C1 through C5 in Upper Triangle, and C6
through C10 in Lower Triangle, ii) Parallel and iii) Ormaque . Gold mineralization in the Triangle ,
Parallel and Ormaque deposits occurs primarily within quartz-tourmaline-carbonate-pyrite shear and
extension veins. At Triangle, most of the deposit is contained within a series of shear veins (C1-C10)
emplaced along steeply south-dipping reverse shear zones. The ore zones are localized where the
shear zones cut across the subvertical Triangle Plug, but extend into the adjacent mafic lapilli-blocks
tuffs as well.
The Parallel and Ormaque deposits are located two kilometers northwest of the Triangle mine portal,
adjacent to the Triangle-Sigma decline. Mineralized veins in both are hosted within fine- to medium-
grained C-porphyry diorite. Ormaque is dominated by gently south-dipping extension veins and minor
breccia zones, localized adjacent to sub-vertical shear zones. At Parallel, mineralized zones consist
of gently-dipping extension veins in the upper part of the deposit and more steeply -dipping shear-
hosted veins at deeper levels.
Infrastructure
Through its existing infrastructure, the Lamaque Project is readily equipped to support all
planned operations. The Triangle mine site infrastructure includes offices, dry storage, truck shop,
warehouse, ventilation facilities, waste rock stockpile, slurry plant, cement silo, and fuel station. The
Sigma Mill site includes a processing plant, covered ore storage, crushing facilit y and a warehouse.
Support infrastructure also includes administration, construction, and exploration offices, as well as a
core yard.
The site has its own water management and collection ponds. The existing power line connecting the
Sigma Mill to the Triangle mine is designed to accommodate current as well as foreseeable future
operations.
Environment and Permitting
The Triangle mine at the Lamaque Project is an operating mine and is fully permitted under Federal
and Provincial regulations. The asset is in compliance regarding environmental quality and is regularly
assessed by Provincial authorities regarding EQA of Québec. Mineralized material in Lower Triangle
is fully permitted under existing certificates of authorizations (“CoA”).
There is an existing CoA for mining in the Ormaque deposit, but this will require an amendment to
allow for mining below a depth of 453 meters. There are no indications that the project will be
unsuccessful in obtaining a permit amendment.
Reclamation costs for the Lamaque Project were evaluated at $10 million based on recent
assessments and a full review of the closure plan is scheduled in 2023.
Mineral Resources Estimate
The table below provides the Mineral Resource Estimate for the Lamaque Project as of September
30, 2021. The Mineral Resources were classified using logic consistent with the CIM Definition
Standards for Mineral Resources and Mineral Reserves refe rred to in National Instrument 43 -101.
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The mineralization of the project satisfies sufficient criteria to be classified into measured, indicated,
and inferred mineral resource categories.
Mineral Resources, as of September 30, 20211
Deposit/Zone Categories Tonnes
(x 1,000)
Grade
Au
(g/t)
Contained Au
(oz x 1,000)
Upper
Triangle
Measured 876 9.49 267
Indicated 5,316 8.51 1,453
Measured + Indicated 6,191 8.65 1,721
Inferred 1,792 6.63 382
Lower
Triangle Inferred 6,408 6.89 1,420
Parallel Indicated 221 9.87 70.2
Inferred 200 8.83 56.7
Ormaque2 Inferred 2,223 11.74 839
1 See “Notes on Mineral Resources” below.
2 Ormaque Inferred Resources as of December 31, 2021
Notes on Mineral Resources
Mineral Resources and Mineral Reserves are as of September 30, 2021, unless otherwise stated.
1. Mineral Resource Reporting and demonstration of Reasonable Prospects for Eventual
Economic Extraction:
The Mineral Resources used a long term look gold metal price of $1,800/oz for the determination
of resource cut -off grades or values. This guided exec ution of the next step where constraining
surfaces or volumes were created to control resource reporting. Underground Resources were
constrained by 3D volumes whose design was guided by the reporting cut -off grade or value,
contiguous areas of mineralizat ion and mineability. Only material internal to these volumes were
eligible for reporting.
2. Cut-off Grades
Lamaque: 3.0 g/t Au; Ormaque: 3.5 g/t Au
Triangle Deposit
The Mineral Resource estimates for the Upper Triangle zones and the Lower Triangle zones of the
Triangle deposit used data from both surface and underground diamond drillholes. The resource
estimates were made from 3D block models created by utilizing comm ercial geological modelling
and mine planning software. The block model cell size is 5 meters east by 5 meters north by 5 meters
high. The mineral resources are reported within the constraining mineralized domain volumes that
were created to control resource reporting and at a 3.0 grams per tonne (“g/t”) gold cut-off grade.
Parallel Deposit
The Mineral Resource estimate for the Parallel deposit used data from surface diamond drillholes. The
resource estimates were made from 3D block models created by utiliz ing commercial geological