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Eldorado Gold to begin construction of decline at Lamaque

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(Kitco News) - Eldorado Gold Corp. (TSX: ELD; NYSE: EGO) is undertaking construction of a three-kilometer tunnel, or decline, from the Sigma mill to the 405-meter level of the Triangle mine at its Lamaque operations in Quebec, the company announced Monday.

Officials said this is aimed at boosting output at Lamaque, where commercial production was declared in March 2019. The company’s website says output in 2020 is expected to be 125,000 to 135,000 ounces of gold.

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

Engineering and site preparation for the decline will begin this month, with surface construction on the portal to start in the third quarter, the company said. Officials said the decline should be completed by the first half of 2022 at an estimated cost of $24 million.

Eldorado is also evaluating the possible addition of an underground crushing and conveying system, as well as a potential mill expansion. An update on Lamaque plans is expected in the fourth quarter.

Meanwhile, Eldorado said it has completed a purchase of the 5% of the shares in Greek subsidiary Hellas Gold that were owned by Ellaktor, making the company the sole shareholder in Hellas Gold.

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