Eldorado Gold Corporation Continues Exploration at Tocantinzinho
Eldorado Gold Corporation has advised Brazauro that during the nine month period from August 2008 through the first quarter of 2009 it has expended C$5.1 million on Brazauro’s Tocantinzinho Project in Brazil for exploration, drilling, capital expenditures and other related matters. Under the terms of the Option/Joint Venture Agreement between Brazauro and Eldorado, before Eldorado may exercise its options to acquire up to a 75% interest in the Tocantinzinho Project, Eldorado must spend not less than C$9.5 million in qualified expenditures by July 28, 2010.
Mark E. Jones III, Chief Executive Officer of Brazauro in commenting on the expenditures to date stated, “We are encouraged by the rate at which Eldorado is conducting the expenditures on the project and by the nature and results of their efforts. As we announced March 2, 2009, the drilling results to that date have significantly upgraded the resource at Tocantinzinho and added additional ounces.”
Eldorado has the option to acquire a 60-per-cent interest in the Tocantinzinho project for C$40-million by committing to an expenditure of C$9.5-million over a two-year period, toward completing an N143-101 compliant feasibility study. Eldorado will have a second option to purchase an additional 10 per cent of the Tocantinzinho project for a further C$30-million once a construction decision has been made following the completion of a feasibility study. Eldorado will have a third option to purchase an additional 5 per cent of the Tocantinzinho project for a further C$20-million. If the feasibility study outlines between two and 2.5 million proven and probable ounces of gold, the price will be increased by C$5-million and if it outlines more than 2.5 million proven and probable ounces of gold, the price will be increased by C$10-million.