Eldorado Gold Corp. - Vila Nova - Iron Ore - Summary

Vila Nova - Iron Ore

Summary

LOCATION	Amapá, Brazil
RESERVES (in tonnes and % Fe; at December 31, 2011)
Proven + Probable	8,941,000 (60.9% Fe)
RESOURCES (in tonnes and % Fe; at December 31, 2011)
Measured + Indicated Inferred	9,633,000 (61.5% Fe) 2,022,000 (61.2% Fe)
PRODUCTION
2011 Forecast	508,000 tonnes iron ore
CASH OPERATING COST
2011 Forecast	$62/tonne
FEASIBILITY STUDY RESULT (in tonnes)
Designed annual production capacity	900,000 ROM ore
CAPEX	$39 million
OWNERSHIP	100% (through Eldorado's wholly owned subsidiary, Unamgen Mineracao e Metalurgia S/A).
PROJECT STATUS AND HISTORY	First shipment of iron ore on November 2, 2010 Trial mining activities started during Q2 2010 The remaining 25% of the project was acquired in Q3 2009 Construction and commissioning completed in Q2 2009 Pre-Feasibility Study completed in Q3 2007 All licenses granted

Description

The Vila Nova Iron Ore mine is a robust project, with significant financial upside associated with price escalation and resource expansion opportunities. It consists of an open pit mine and ore processing facility producing lump ore and sinter fines.

In August 2009, we acquired the remaining 25% interest of the Vila Nova iron ore project from Mineracao Amapari and now own 100% of the project.

Mine construction and commissioning were completed in Q2 2009. After a period in care and maintenance, during which iron ore prices recovered, we commenced trial mining at Vila Nova in Q3 2010. Two shipments from trial mining, totaling 90,000 tonnes, were sold to the Chinese spot market at an average price of $93 per tonne during Q4 2010.

During the first three quarters of 2011, we produced 379,738 tonnes of iron ore and sold 299,621 tonnes, at an average realized price of $127/tonne.

Vila Nova Iron Lump and Sinter Piles (click to enlarge)