After Eldorado Gold hit 52-week high in Amex, today it breaks out today in Toronto Stock Exchange and also hit all time high. It outperforms its peer gold mining companies.
This is the cheapest producer of gold at extraction costs of just $300 an ounce and going lower, maybe much lower. And also interesting was the possible sale or restart of its gigantic iron mine in South America. China needs lots of iron, who has the problem with Rio Tinto right now. It could sell this mine to China at a nifty profit and have a war chest and accelerate its properties that produce the cheapest gold in China.
According to its press release, Eldorado Gold identifies new gold zone in China and announces the discovery of a new zone of mineralization at our Tanjianshan Mine in China. The mineralization has been intersected approx 2 km south of the Qinglongtan open pit within an evolving broad zone of geochemically anomalous bedrock up to 500m wide and 2.5km long. The discovery represents the first new gold zone identified by Eldorado since acquiring the property, and the company said it believes there is the potential for additional discoveries. That may add to its price jump 8.44% today.
Congradulation to Eldorado's management team.
Disclosure: Long Eldorado Gold.
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