Calculated on the international price of gold applied Friday, the output would reach $220 million per year.
Eldorado Gold recently bought Canadian-registered European Goldfields. Now, the group expects mining in Romanian county Hunedoara, at Certej, to start in the second half of 2015 and to take 12 years. Average output would reach four tons of gold and 20 tons of silver per year, with an investment estimated at $330 million.
The company will update by the end of May its estimations on the reserves available at Certej, and the project will be reevaluated considering an average price of $1,250 per ounce of gold, Eldorado Gold said in a news release.
Calculated on the current price, of $1,680 per ounce, the quantity of gold extracted yearly at Certej would cost $218 million. Calculated on the average selling price applied by Eldorado in 2011, output reaches $205 million per year.
Eldorado Gold Corporation expects production at Certej to cost $400 per ounce, requiring a development capital of $270 million and sustainment capital worth $60 million.
Eldorado bought European Goldfields for $2.4 billion, thus taking over 80% of Deva Gold, which develops the gold mine at Certej. The remaining 20% in Deva Gold is owned by the government, through Minvest Deva.
Mining at Certej, according to Eldorado, should start in the second half of 2015.
Eldorado holds mines in China, Turkey, Greece and Brazil. Last year, the group posted a net profit of $318.7 million, up 44% on the year. (EUR1=$1.3173)