Eldorado crushes first ore at Skouries, eyes Q3 output

Eldorado Gold (TSX: ELD; NYSE: EGO) has processed first ore through the crushing circuit at its Skouries copper-gold project in northern Greece as the company remains on track for first concentrate production in the third quarter and commercial production by the end of the year.

The milestone comes as Skouries enters the final commissioning stage, with wet and dry testing underway across the crushing, grinding, flotation, concentrate handling and filtered tailings circuits.

Eldorado has also built a 3.9-million-tonne ore stockpile, including 3.4 million tonnes from the open pit, enough to support plant ramp-up through 2026 while mining continues ahead of schedule.

“Crushing first ore is an important milestone for Skouries and reflects the steady, safe progress being made by our team as the project moves through the final stages of construction and staged commissioning,” CEO George Burns said. “Our focus remains on completing the remaining steps safely and methodically as we work toward first concentrate in the third quarter.”

Skouries is one of Europe’s largest copper-gold development projects and is expected to become a key source of both metals as Western governments seek new supplies outside traditional producing regions. Achieving first production would significantly expand Eldorado’s production profile while adding a long-life asset to its portfolio.

Power hurdle

Shares in Eldorado Gold gained 9.5% to $42.70 apiece by mid-Tuesday in Toronto, valuing the company at $11.2 billion. They’ve ranged from $27.53 to $69.46 over the past 12 months. 

The remaining major step before full plant operation is final site energization. Construction of the project’s 12 transmission towers is complete after installation of the final tower during a planned eight-hour power outage, but full power depends on final inspection, testing and sign-off by the Greek power authority.

To maintain progress, Eldorado has installed additional generators to support commissioning activities until permanent power is available. The company said integrated operation of the crushing, grinding, flotation, concentrate handling and tailings systems will begin once the site receives full grid power.

The staged commissioning program will continue as individual systems are tested against design specifications and transferred from the construction team to operations before the plant begins producing copper-gold concentrate later this year.

Once operational, Skouries is expected to reshape Eldorado’s production profile by boosting gold output and introducing copper revenue, helping lower overall cash costs. The deposit will be mined using a mix of conventional open-pit and underground methods.