Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or
“the Company”) is pleased to announce an updated Mineral Resource
and Mineral Reserve Estimate with additional gold production over
the life of mine (“LOM”) for its Ada Tepe gold mine in Bulgaria.
Highlights
- Improved LOM plan, with an estimated increase in recovered gold
to concentrate of approximately 66,000 ounces (“K oz.”) and higher
average gold grade of 5.2 grams per tonne (“g/t”), compared with
4.6 g/t in the previous 2020 LOM plan.
- Average of approximately 16,500 ounces of additional gold
production per year for 2023 through 2026.
- Expected to improve DPM’s previously issued three-year outlook
for gold production, which will be updated with the release of the
Company’s fourth quarter and year-end 2022 financials on February
16, 2023.
“Since commissioning in 2019, Ada Tepe has
continued to outperform our expectations,” said David Rae,
President and CEO. “We are confident that Ada Tepe will continue to
deliver strong results, supported by this improved life of mine
plan.”
Updated Life of Mine Plan
Based on the final pit design, a strategic mine
planning study was conducted to optimize net present value of mine
cash flows, balanced against other considerations including mine
production, process plant throughput rates, stockpiling capacity,
and mine life.
The updated LOM plan maintains production
through 2026 and reflects an increase of 66,000 ounces of total
gold recovered with a higher LOM gold grade of 5.19 g/t, relative
to the same period in the previous 2020 LOM plan. Additionally, it
is expected to improve DPM’s previously issued three-year outlook
for production, which the Company will update with its fourth
quarter and year-end 2022 financial results in February.
The tables below show the current LOM plan,
compared to the previous 2020 LOM plan.
2023 Life of Mine Plan |
|
Unit |
Total / Average |
2023 |
2024 |
2025 |
2026 |
Total Ore
Processed |
Kt |
2,489 |
767 |
614 |
524 |
584 |
Grade |
|
|
|
|
|
|
Au |
g/t |
5.19 |
6.28 |
5.52 |
5.18 |
3.41 |
Ag |
g/t |
3.13 |
3.52 |
3.21 |
3.03 |
2.63 |
Contained
Metal |
|
|
|
|
|
|
Au |
K oz. |
415 |
155 |
109 |
87 |
64 |
Ag |
K oz. |
250 |
87 |
63 |
51 |
49 |
Recovered
Metal |
|
|
|
|
|
|
Au |
K oz. |
360 |
134 |
95 |
77 |
54 |
Ag |
K oz. |
153 |
56 |
40 |
31 |
26 |
Strip Ratio |
t:t |
3.83 |
3.21 |
4.74 |
5.13 |
2.31 |
2020 Life of Mine Plan |
|
Unit |
Total / Average |
2023 |
2024 |
2025 |
2026 |
Total Ore
Processed |
Kt |
2,324 |
749 |
679 |
617 |
279 |
Grade |
|
|
|
|
|
|
Au |
g/t |
4.59 |
6.22 |
4.09 |
3.54 |
3.74 |
Ag |
g/t |
3.13 |
3.80 |
2.79 |
2.76 |
2.95 |
Contained
Metal |
|
|
|
|
|
|
Au |
K oz. |
343 |
150 |
89 |
70 |
34 |
Ag |
K oz. |
234 |
92 |
61 |
55 |
26 |
Recovered
Metal |
|
|
|
|
|
|
Au |
K oz. |
294 |
129 |
76 |
60 |
29 |
Ag |
K oz. |
133 |
58 |
33 |
28 |
14 |
Strip Ratio |
t:t |
3.5 |
3.19 |
4.88 |
3.85 |
1.40 |
Increase in Contained and Recovered Gold Ounces (2023 LOM
relative to 2020 LOM) |
|
Unit |
Total |
2023 |
2024 |
2025 |
2026 |
Contained gold |
K oz. |
72 |
5 |
20 |
17 |
30 |
Recovered gold |
K oz. |
66 |
5 |
19 |
17 |
25 |
Updated Mineral Resource and Mineral
Reserves Estimate
To ensure higher confidence geologic modelling
for mine planning and scheduling, DPM elected to complete all
operational grade control drilling within the remaining LOM pit
volume ahead of mining, which was completed in Q1 2022. The updated
Mineral Resource and Mineral Reserve estimate for Ada Tepe reflects
the results of 290 kilometres of grade control drilling completed
since the previous 2020 update. Effectively all of the Mineral
Resource estimate has now been converted to the Measured category.
This drilling has successfully defined additional mineralization
within the northern regions of the deposit, which was previously
interpreted as being less extensive, due to the limitations of the
wider drilling grid spacings at that time.
The updated Proven and Probable Mineral Reserve
comprises of 415,000 contained gold ounces and 250,000 contained
silver ounces. Mineral Reserves are estimated based on a Mine Shape
Optimizer (“MSO”) diluted block model, used to account for
operational mine dilution and expected level of selectivity. The
Mineral Reserve statement is shown below and is effective as at
December 31, 2022.
Ada Tepe Mineral Reserve Estimates(As at December
31, 2022) |
Category |
Tonnes(Mt) |
Grade (g/t) |
Metal Content (Moz.) |
Au |
Ag |
Au |
Ag |
Proven |
|
|
|
|
|
Upper Zone |
1.13 |
4.20 |
2.56 |
0.153 |
0.093 |
Wall Zone |
1.15 |
6.82 |
4.02 |
0.252 |
0.149 |
Stockpile |
0.21 |
1.49 |
1.32 |
0.010 |
0.009 |
Subtotal Proven |
2.49 |
5.19 |
3.13 |
0.415 |
0.250 |
Probable |
|
|
|
|
|
Subtotal Probable |
- |
- |
- |
- |
- |
Proven and Probable |
|
|
|
|
|
Upper Zone |
1.13 |
4.20 |
2.56 |
0.153 |
0.093 |
Wall Zone |
1.15 |
6.82 |
4.02 |
0.252 |
0.149 |
Stockpile |
0.21 |
1.49 |
1.32 |
0.010 |
0.009 |
Total |
2.49 |
5.19 |
3.13 |
0.415 |
0.250 |
Footnotes:
- Mineral Reserves have been estimated using a gold cut-off of
0.6 g/t for the Upper Zone, and 0.8 g/t for the Wall Zone.
- Long-term metal prices assumed for the pit optimization were
US$1,400/oz. for gold and US$20/oz. for silver. The optimized pit
was selected based on a revenue factor of 1.14.
- Mineral Reserves include mining depletion as of December 31,
2022.
- Proven ore includes stockpile inventory as of December 31,
2022.
The Upper Zone was modelled using an Indicator
Kriging-based approach to define grade shells. Using the Indicator
Kriging numeric outputs, a probability threshold was chosen, which
was used to constrain volumes within the block model for grade
estimation (gold, silver and sulphur) using Ordinary Kriging. The
probability threshold was chosen based on benchmarking studies
against operational grade control modelling and monthly
reconciliation outputs.
Wall Zone and Basement Zone mineralization
models were based on sectional interpretation of geological logging
data and gold assay data. Grade estimation within these volumes was
undertaken using Ordinary Kriging and in-situ dry bulk density was
assigned on the basis of oxidation state and lithology.
The block model was classified in accordance
with CIM guidelines as Measured, Indicated and Inferred Mineral
Resources based on confidence in data, geological and grade
continuity, density measurements and estimation quality. Reasonable
prospects for eventual economic extraction (“RPEEE”) are supported
through a pit optimization constraint applied to Mineral Resources,
using a gold price of US$1,600 per ounce. The Mineral Resource
statement is shown below and is effective as at December 31,
2022.
Ada Tepe Mineral Resource Estimate, exclusive of Mineral
Reserves(As at December 31, 2022) |
Resource category |
Tonnes(Mt) |
Grade (g/t) |
Metal Content (Moz.) |
Au |
Ag |
Au |
Ag |
Measured |
0.08 |
4.27 |
3.19 |
0.011 |
0.008 |
Indicated |
0.02 |
3.83 |
2.94 |
0.002 |
0.002 |
Total Measured and Indicated |
0.10 |
4.19 |
3.15 |
0.013 |
0.010 |
Inferred |
0.01 |
4.04 |
2.24 |
0.001 |
0.000 |
Footnote:
- Figures have been rounded to reflect that this is an
estimate.
- Measured, Indicated and Inferred Mineral Resources have been
reported in accordance with National Instrument 43‐101 (“NI
43-101”) and the classification adopted by the Canadian Institute
of Mining, Metallurgy and Petroleum (“CIM”).
- Estimates of Measured and Indicated Mineral Resources are
reported exclusive of those Mineral Resources modified to produce
Mineral Reserves.
- Mineral Resources may be subject to legal, political,
environmental and other risks and uncertainties. See Cautionary
Note Regarding Forward-Looking Statements.
- CSA Global (UK) Ltd. (“CSA Global”) are not aware of any legal,
political, environmental or other risk factors that might
materially affect the estimate of Mineral Resources.
- Mineral Resources are based on a gold-cut off grade of 0.6 g/t
for the Upper Zone and Overburden and 0.8 g/t for the Wall Zone and
Basement mineralization.
- Mineral Resources are reported above a surface based on a
conceptual US$1,600 per ounce gold price pit shell to support
assumptions relating to reasonable prospects of eventual economic
extraction.
- The Mineral Resource is effective as at December 31, 2022.
Exploration
In 2022, exploration activities focused on a
resource extension drilling program at Ada Tepe and other
satellites in the Khan Krum mine concession area, as well as target
delineation campaigns on the Chiirite and Dalbokata Reka
exploration licences. Approximately 9,400 metres were drilled over
47 holes during the year.
At Ada Tepe, a dedicated drilling program to
test for potential extensions of mineralization to the north and to
test for conceptual feeder structures at depth was implemented with
17 holes consisting of 2,686 metres. Results of extensional
drilling to the north of the deposit returned a series of narrow
intervals of mineralization above the mine cut-off, that may
represent incremental extensions of Upper Zone vein swarms. The
Company is assessing if follow-up drilling is required in this
area.
On the Chiirite exploration licence, the
drilling program at the Golden Creek and Cernichino prospects was
completed with a total of 3,435 metres over 11 holes during the
year. From this program, encouraging results were received from
drill hole ZDDD004 on the Cernichino target, which returned 10
metres at 1.98 g/t and 1.21 g/t Ag from 170 metres downhole.1 This
intercept will be followed up in the 2023 exploration drill
program, which will also test for structurally controlled, granite
hosted mineralization and skarn hosted mineralization targets at
Kara-Tepe.
During 2023, DPM will be employing a focused
targeting approach to evaluate undercover targets within the
Krumovgrad camp. Targeting methodologies will be driven by
integration and re-interpretation of existing data, which will be
assisted by machine learning, additional geophysical methods and
spectral satellite image processing, followed by approximately
11,000 metres of drilling. Drilling is initially planned to focus
on the Chiirite licence area, while the Company finalizes
permitting for the Krumovitsa licence, which is expected in Q3
2023. Subject to the timing of permits, there is potential to
increase drilling activities to 26,000 metres.
Figure 1. Overview map of the Ada Tepe
mine concession and regional exploration
licences.https://www.globenewswire.com/NewsRoom/AttachmentNg/291d359e-a16a-49f3-99b1-ea9fc747ff9d
Technical Information and Technical
Report Filing
The Mineral Resource and Mineral Reserve estimates for Ada Tepe
and other scientific and technical information which supports this
news release was prepared by CSA Global, in accordance with
Canadian regulatory requirements set out in National Instrument
43-101 Standards of Disclosure for Mineral Projects, as relates to
Mineral Resources, Galen White, BSc. (Hons), FAusIMM, FGSL, Partner
& Principal Consultant of CSA Global and as relates to Mineral
Reserves, under the supervision of Andrew Sharp, BEng, PEng (BC) –
Licence No. 47907, principal engineer of Sharp Ideas in Mining Ltd.
Both are Qualified Persons (“QP”), as defined under NI 43-101.
Galen White and Andrew Sharp are independent of the Company.
Ross Overall, Corporate Mineral Resource
Manager, of the company, who is a QP, as defined under NI 43-101,
has reviewed and approved the contents of this news release,
including the scientific and technical information contained
herein.
A technical report for the Ada Tepe mine,
prepared in accordance with NI 43-101, will be filed under the
Company’s profile on SEDAR at www.sedar.com within 45 days of this
news release. Readers are encouraged to read the technical report
in its entirety, including all qualifications, assumptions,
exclusions and risks that relate to the Mineral Resource, Mineral
Reserves and LOM. The technical report is intended to be read as a
while, and sections should be read or relied upon out of
context.
The Mineral Reserve and Mineral Resource
estimates and related information in this news release may not be
comparable to similar information made public by U.S. companies,
subject to the reporting and disclosure requirements under the
United States federal securities laws and the rules and regulations
thereunder.
About Dundee Precious
Metals
Dundee Precious Metals Inc. is a Canadian-based
international gold mining company with operations and projects
located in Bulgaria, Namibia, Ecuador and Serbia. The Company’s
purpose is to unlock resources and generate value to thrive and
grow together. This overall purpose is supported by a foundation of
core values, which guides how the Company conducts its business and
informs a set of complementary strategic pillars and objectives
related to ESG, innovation, optimizing our existing portfolio, and
growth. The Company’s resources are allocated in-line with its
strategy to ensure that DPM delivers value for all of its
stakeholders. DPM’s shares are traded on the Toronto Stock Exchange
(symbol: DPM).
For further information please contact:
David RaePresident and Chief Executive OfficerTel:
(416) 365-5092drae@dundeeprecious.com |
Jennifer CameronDirector, Investor RelationsTel:
(416) 219-6177jcameron@dundeeprecious.com |
Cautionary Note Regarding
Forward-Looking Statements
This news release contains “forward looking
statements” or “forward looking information” (collectively,
“Forward Looking Statements”) that involve a number of risks and
uncertainties. Forward Looking Statements are statements that are
not historical facts and are generally, but not always, identified
by the use of forward looking terminology such as “plans”,
“expects”, “is expected”, “budget”, “scheduled”, “estimates”,
“forecasts”, “outlook”, “intends”, “anticipates”, “believes”, or
variations of such words and phrases or that state that certain
actions, events or results “may”, “could”, “would”, “might” or
“will” be taken, occur or be achieved, or the negative of any of
these terms or similar expressions. The Forward Looking Statements
in this news release relate to, among other things; the price of
gold, silver, and other commodities; mine life (LOM); production
forecasts; the estimation of Mineral Reserves and Mineral Resources
and the realization of such mineral estimates; information
contained in the life of main plan and increases in contained and
recovered gold ounces table; expected improved recoveries and
expected improvements to the three-year outlook provided by the
Company for Ada Tepe. Forward Looking Statements are based on
certain key assumptions and the opinions and estimates of
management and the Qualified Persons, as of the date such
statements are made, and they involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any other future results, performance or
achievements expressed or implied by the Forward Looking
Statements. In addition to factors already discussed in this news
release, such factors include, among others, risks relating to the
Company’s business generally and the impact of COVID-19, including,
changes to the Company’s supply chain; product shortages; delivery
and shipping issues; closures and/or failure of plant, equipment or
processes to operate as anticipated; employees and contractors
becoming infected with COVID-19; lost work hours; labour force
shortages; fluctuations in metal and acid prices, toll rates and
foreign exchange rates; inflation and risks of recession; possible
variations in ore grade and recovery rates; uncertainties inherent
to the conclusions of economic evaluations; economic studies and
mine plans; changes in project parameters, including schedule and
budget, as plans continue to be refined; uncertainties with respect
to actual results of current exploration activities; uncertainties
inherent with conducting business in foreign jurisdictions where
corruption, civil unrest, political instability and uncertainties
with the rule of law may impact the Company’s activities;
limitation on insurance coverage; accidents, labour disputes and
other risks of the mining industry; geopolitical uncertainties
related to the war in Ukraine and economic sanctions against Russia
and Russian persons which may impact supply chains; delays in
obtaining governmental approvals or financing; actual results of
current and planned reclamation activities; opposition by social
and non-government organizations to mining projects and smelting
operations; unanticipated title disputes; claims or litigation;
cyber attacks and other cybersecurity risks; as well as those risk
factors discussed or referred to in any other documents (including
without limitation the Company’s most recent Annual Information
Form and the technical report entitled “NI 43-101 Technical Report
– Mineral Resource and Mineral Reserve Update – Ada Tepe Mine,
Krumovgrad, Bulgaria” dated November 20, 2020) filed from time to
time with the securities regulatory authorities in all provinces
and territories of Canada and available on SEDAR at www.sedar.com.
The reader has been cautioned that the foregoing list is not
exhaustive of all factors which may have been used. Although the
Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from
those described in Forward Looking Statements, there may be other
factors that cause actions, events or results not to be
anticipated, estimated or intended. There can be no assurance that
Forward Looking Statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. The Company’s Forward Looking
Statements reflect current expectations regarding future events and
speak only as of the date hereof. Unless required by securities
laws, the Company undertakes no obligation to update Forward
Looking Statements if circumstances or management’s estimates or
opinions should change. Accordingly, readers are cautioned not to
place undue reliance on Forward Looking Statements.
1 For more information regarding the Company’s
exploration results for Ada Tepe, refer to the Management’s
Discussion and Analysis for the period ended September 30, 2022,
issued November 10, 2022, which is available on the Company’s
website at www.dundeeprecious.com and SEDAR at
www.sedar.com.
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