Eldorado, Gencor pursue interest in Dominican mine

After closing an equity-for-asset transaction with Gencor, one of South Africa’s premier mining houses, Eldorado Gold (ELD-T) has entered into a 50-50 joint venture with the mining giant to pursue an interest in the state-controlled Pueblo Viejo gold mine in the Dominican Republic.

At the request of owner Rosario Dominicana, the joint venture partners have been invited to set up a BIOX pilot plant at the Pueblo Viejo mine. BIOX is an environmentally friendly technology, developed by Gencor, that treats metallurgically complex refractory gold ores at significantly lower capital and operating costs than are incurred using conventional methods.

>From 1975 to 1992, the Pueblo Viejo mine produced 5 million oz. gold and 72 million oz. silver from oxide reserves, which are now virtually exhausted.

The remaining gold mineralization is refractory.

A sulphide reserve is estimated at 120 million tons grading 0.094 oz. gold and 0.6 oz. silver within a resource of 510 million tons averaging 0.062 oz.

gold and 0.39 oz. silver. The deposit is open laterally and

at depth.

The mine is struggling to produce 100,000 oz. gold per year, with gold recoveries at a dismal 38% and dropping to 18% for sulphide ore alone.

Initial metallurgical testwork by Gencor and Eldorado have yielded gold recoveries of

86-92%.

The partners have given themselves nine months to complete an plan, budgeted at US$2.5 million, and come up with a firm proposal that they hope will lead to a formal agreement with the mine owners.

Gencor holds a fully diluted 45% equity interest in Eldorado.