Eldorado (NYSE:EGO) Begins Iron Ore Shipments from Vila Nova

Already one of the top gold miners as measured by low costs, Eldorado Gold (NYSE:EGO) has launched its first shipment of iron ore from its Vila Nova Mine in Brazil, which could help lower gold production costs even more for the company.

The first shipment included 45,000 tons of lump ore grading approximately 63% Fe, which was sold to the Chinese spot market, according to a press release from the company.

Paul N. Wright, President and Chief Executive Officer of Eldorado said, "We are pleased to be able to realize the first shipment of iron ore from our Vila Nova Mine and I would like to thank our Brazilian team for their outstanding efforts. Vila Nova is part of our strategy to expand our business in Brazil which we see as an important component in the continued growth of Eldorado Gold."

A second shipment is expected to proceed in the latter part of November, which will include an additional 45,000 tons of sinter ore.

The two shipments are part of Eldorado's strategy to test the quality of the ore and operational factors to see how the work is performed. They plan on shipping another 90,000 tons to that end.

Eldorado was trading in New York at $17.99, gaining $0.09, or 0.50 percent at 1:08 PM EDT.