Eldorado Gold Corp (USA) (NYSE:EGO) finds two new high grade zones


Dallas, Texas 09/17/2013 (Financialstrend) – EGO fluctuation at the markets

Eldorado Gold Corp (USA) (NYSE:EGO) shares have been steady losing ground on the browsers in the past 30 days. It is currently trading at $7.11 as of close of business on September 16. It has lost over 19% in the past 30 days and more than 10% of its value in the last 5 days. At current valuations, the share price represents an over 56% drop from its 52 weeks high it had reached in September last year. Since then the shares had gone down to a 52 week low of $5.55 in June’13. Since June the share prices have been fluctuating to settle at current valuations which represent a 27% growth over the 52 weeks low.

The softness in EGO valuation at this juncture seems odd. As per September 5 SEC filings by the company, new high grade zones of mineralization have been identified at its Tanjianshan, China plant. The report indicated its drill hole running into ore at four different depths. These new finds are close to the previously gold producing Qinlongtan pit which is no longer in operation. The company claims that these new finds are at deeper levels underneath the northern end of the original deposit. In the words of its chief executive Paul Wright, “These results are very encouraging since they represent an increases in the Company’s resource and reserve base, and  have helped identify areas for next drill testing,”

EGO global operations

EGO is a gold mining and production company. As of June 2013, it had completed 106,500 metres of drilling and exploration programs in China, Turkey, Brazil, Romania, and Greece. Its market valuation is $5.2 billion with a total of 715 million shares outstanding. On August 2the company had announced a drop in its second quarter profits in spite of increase in its production. At that time, EGO had indicated the drop in international gold prices was the main reason for the stock weakness.