FAST NEWS

Eldorado Gold says 2010 gold production jumped 74%

The miner added it expects to grow gold production 15 - 20% in 2011on the back of the planned start up of two new mines

Posted: Tuesday , 11 Jan 2011

TORONTO (Reuters) - 

Eldorado Gold (ELD.TO: Quote) said on Monday that it will increase production in 2011 by 15 to 20 percent with the planned startup of two new mines, and reported a 74 percent boost in gold production in 2010.

The Vancouver-based miner produced 632,537 ounces of gold in 2010, up from 363,509 ounces in 2009, and plans to produce up to 770,000 ounces in 2011.

Cash costs in 2011 are expected to be $375 to $395 an ounce, while cash costs in 2010 averaged $382.

The company also announced it will double its dividend for 2010 to 10 cents a share, payable on Feb. 25.

Eldorado said it will start production at its Efemcukuru project in Turkey, which is expected to produce up to 100,000 ounces in 2011.

The miner will also start production at Eastern Dragon in China, with anticipated 2011 production of up to 80,000 ounces.

The company plans to spend $54 million on exploration in 2011, of which $24 million will be spent in China.

Shares of Eldorado were down 8 Canadian cents at C$16.98 on Monday on the Toronto Stock Exchange. (Reporting by Julie Gordon; editing by Rob Wilson)

© Thomson Reuters 2011 All rights reserved