Eldorado Gold (TSX: ELD; NYSE: EGO) is studying a 43% expansion of its McIlvenna Bay processing plant and a new silver-lead circuit as the Saskatchewan copper-zinc-gold-silver mine ramps towards commercial production.
More than 400,000 tonnes of material is ready for processing, while McIlvenna Bay produced zinc and pyrite concentrates in July after making its first copper concentrate in June. Eldorado estimates project capital at $952 million (C$1.32 billion) from June 2024 through commercial production, which remains targeted for the third quarter.
“First production achieved, a study underway to evaluate a potential mill expansion and the addition of a silver-lead circuit, and significant district-scale exploration potential” bode well, Eldorado President Christian Milau said in a release on Wednesday. “We look forward to continuing to work with governments and Indigenous partners.”
Saskatchewan diversifies
Located about 65 km west of Flin Flon, Man., McIlvenna Bay adds commercial-scale copper and zinc production, as well as gold and silver by-products, to a Saskatchewan mining industry better known for potash and uranium. The underground mine became Eldorado’s first Saskatchewan asset through its acquisition of Foran Mining in April and was among the first projects referred to Ottawa’s Major Projects Office last September.
The mine has been connected to SaskPower’s grid through a new 85-km transmission line and substation. About 380 people are employed full time at McIlvenna Bay, with employment expected to rise to about 450 after commercial production is reached. About 34% of the current workforce is Indigenous.
McIlvenna Bay is expected to produce 5 million to 10 million lb. of copper, 3,000 to 6,000 tonnes of zinc, 5,000 to 10,000 oz. of gold and 100,000 to 200,000 oz. of silver this year as operations ramp up.
Over its projected 18-year mine life, the operation is expected to average 41 million lb. of copper, 54 million lb. of zinc, 20,000 oz. of gold and 444,000 oz. of silver annually, according to Foran’s March 2025 feasibility study.
Exploration continues
Eldorado is also carrying out about 14,000 metres of drilling this year to support future mining opportunities. Key exploration targets include the nearby Tesla zone and Bigstone deposit.
Ottawa has backed McIlvenna Bay with substantial funding. Natural Resources Canada committed up to $20 million in December 2024 for the transmission connection, substation and electric-vehicle charging infrastructure. Innovation, Science and Economic Development Canada followed with $41 million in January 2025 for clean technologies at the mine.
The Canada Growth Fund agreed in May 2025 to commit about $156 million alongside co-investors towards the project’s development and construction.
Together with the Skouries copper-gold project in Greece, McIlvenna Bay is increasing Eldorado’s exposure to copper alongside its established gold business.
“The progress achieved at McIlvenna Bay is a clear example of what Canada can accomplish when governments, Indigenous partners, workers and industry work together,” Energy and Natural Resources Minister Tim Hodgson said in the same release.
“As one of Canada’s most significant new sources of copper and zinc, this project is strengthening our economic prosperity and national security at a time when we have never needed to build for ourselves more.”
