Eldorado Gold has signed an agreement to sell its 82% interest in the Jinfeng gold mine in southern Guizhou province to China National Gold Group’s wholly owned subsidiary for $300m.

The open-pit and underground mine uses Biox technology and a conventional carbon in leach circuit to produce gold doré.

Eldorado Gold president and CEO Paul Wright said: "China National Gold has been our minority partner at Jinfeng for over 14 years and is the logical buyer as the operation transitions fully into the underground.

"Since commencement of production in 2007, Jinfeng has consistently delivered solid operating results and has been a strong contributor in Eldorado’s global portfolio."

"Jinfeng has consistently delivered solid operating results and has been a strong contributor in Eldorado’s global portfolio."

The transaction is subject to obtaining various regulatory and other approvals and is slated for completion in the third quarter of 2016.

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Jinfeng is expected to process 930,000t of ore at a grade of 3.89g per tonne of gold this year.

Ore will be sourced from the underground operations and a small amount of stockpile, after open-pit operations at the mine concluded in April 2015.

Underground ore mining at Jinfeng is set to increase to 1.2 million tonnes of ore per year, bringing production back to more than 130,000oz of gold per annum.

Underground development is planned at the mine to increase its capacity for the processing of 1.2 million tonnes of ore by 2018.

Image: The open-pit Jinfeng mine uses Biox technology to produce gold doré. Photo: courtesy of ldorado Gold Corp.