(All amounts have been expressed in US Dollars except where otherwise indicated)
Dundee Precious Metals Inc. (TSX:DPM) (TSX:DPM.WT.A) ("DPM" or "the Company")
announces the results of the updated Mineral Reserve and Mineral Resource for
its Chelopech mine in Bulgaria.
Highlights:
-- Life of mine ("LOM") extended from 2023 to 2025
-- Measured tonnes increased 13%, or 2.2 million tonnes ("Mt"), from
September 2011 estimate
-- Pyrite recoveries incorporated into Mineral Reserve estimation
-- LOM assumptions maintain gold price of $1,250 per ounce
-- Pyrite recovery circuit commissioned in Q1 with an annual gold capacity
in pyrite production of up to 80,000 oz of gold; concentrate contracts
in 2014 for 240,000 tonnes and 40,000 oz contained gold
-- First shipment of pyrite concentrate to Xiangguang Copper Co. completed
in March
-- 18 months of stable operation at the 2 million tonnes per year rate,
combined with the newly introduced pyrite recovery circuit, allows
incremental tonnage, recovery and profitability optimization steps in
keeping with DPM's continuous improvement core value
"The addition of a further two years to the LOM of our flagship asset is an
encouraging outcome from our reserve and resource update, which now incorporates
pyrite recovery as a result of our newly constructed capability to treat all
pyrite feeds rather than discard pyrites to tailings," stated Rick Howes,
President and CEO. "We have recently completed our first shipment of pyrite
concentrate and expect to be able to meet our 2014 contractual obligations."
The 2005 metallurgical testwork characterized the hardness and flotation
parameters of each mineralized block, and confirmed that the process flowsheet
currently in operation was optimum for the production of copper/gold
concentrates. An additional test program was completed in 2012, covering current
and future ores, which confirmed the current flowsheet performance for the
copper circuit, and developed the optimum conditions for the future recovery of
pyrite from the current process plant ore feed.
The expanded ore treatment process was completed in early 2012. Further plant
upgrades have been completed since the original expansion, including the
replacement circuit for the second and third cleaners of the copper circuit in
mid-2013, and a new pyrite circuit that commenced operation in the first quarter
of 2014.
Mineral Reserves have been estimated as at December 31, 2013, and are based on,
and inclusive of, Mineral Resources, and include approximately 71,000 tonnes of
broken stocks and stockpiles. Mineral Reserves are reported using a gold
equivalent (Au + Cu(i)2.06) cut-off of 3 g/t and a Net Smelter Return ("NSR")
methodology.
----------------------------------------------------------------------------
MINERAL RESERVES GOLD SILVER COPPER
----------------------------------------------------------------------------
Tons Grade Oz Grade Oz Grade Pounds
M g/t M g/t M % M
----------------------------------------------------------------------------
Proven 10.6 3.30 1.128 9.93 3.395 1.21 284
----------------------------------------------------------------------------
Probable 13.3 3.24 1.384 5.33 2.279 0.82 240
----------------------------------------------------------------------------
Proven and Probable 23.9 3.26 2.512 7.37 5.674 0.99 524
----------------------------------------------------------------------------
Mineral Reserves have been estimated by including a number of technical,
economic and other factors. A change to any of the inputs would therefore have
some effect on the overall results. Concerning mining and metallurgical factors,
it is the belief of CSA Global (UK) Ltd. ("CSA") that sufficient work has been
done by DPM to ensure that these are not likely to have any significant or
material effect on Mineral Reserves. The quality of the ore reserves means that
a high level of mine planning can be instituted and complied with.
Mineral Resources have been classified as Measured, Indicated and Inferred,
following the guidelines specified by the Canadian Institute of Mining,
Metallurgy and Petroleum ("CIM") and adopted for technical reports complying
with National Instrument 43-101 ("NI 43-101"). Mineral Resources have been
estimated as at December 31, 2013, and reported using a gold equivalent (Au +
Cu(i)2.06) cut-off of 3 g/t and a breakeven NSR methodology.
----------------------------------------------------------------------------
MINERAL RESOURCES GOLD SILVER COPPER
----------------------------------------------------------------------------
Tons Grade Oz Grade Oz Grade Pounds
M g/t M g/t M % M
----------------------------------------------------------------------------
Measured 18.6 4.07 2.431 9.72 5.808 1.35 553
----------------------------------------------------------------------------
Indicated 10.2 3.96 1.293 8.39 2.742 1.06 237
----------------------------------------------------------------------------
Measured and
Indicated 28.7 4.03 3.724 9.25 8.550 1.25 791
----------------------------------------------------------------------------
Inferred 8.2 2.71 0.712 11.22 2.952 0.92 166
----------------------------------------------------------------------------
Compared to the September 2011 Mineral Resources estimate, for combined Measured
and Indicated material, the updated estimate for Measured tonnes has increased
by 13% (or 2.2Mt). Inferred material has 15% fewer tonnes with a 12% increase in
copper, 7% increase in gold and 11% increase in silver. The primary reason for
these changes are tonnage losses due to production of 2.5 Mt of ore treated
during the period October 1, 2012 to December 31, 2013, offset by increases in
resources from development drilling success.
It is CSA's opinion that the Mineral Resources estimate has a very low to
negligible risk of being affected by factors such as geological understanding,
data mismanagement, poor estimation methodology or poor classification strategy.
The deposit geology is well understood, has been appropriately modeled in 3D and
has adequate sampling data to support the grade and tonnage estimates. Recent
reconciliation with production has verified the quality of the Mineral Resources
estimate.
Mineral Resources and Reserves are based on the 2014 ore production schedule,
operating costs through to 2013, with current projected metal prices of $1,250
per troy ounce price for gold, $2.75 per pound for copper, and $23 per troy
ounce for silver.
Technical Information
The Mineral Resource and Mineral Reserve estimates and other scientific and
technical information contained in this news release was prepared by CSA Global
(UK) Ltd. ("CSA"), in accordance with Canadian regulatory requirements set out
in National Instrument 43-101 Standards of Disclosure for Mineral Projects, and
has been reviewed and approved by, as it relates to Mineral Resources, Malcolm
Titley BSc, MAIG, Director and Principal Geologist, of CSA, and Julian Bennett,
BSc ARSM FIMMM CEng, Mining Consultant, as it relates to Mineral Reserves. Both
Malcolm Titley and Julian Bennett are independent Qualified Persons ("QP"), as
defined under NI 43-101. The NI 43-101 technical report entitled "NI 43-101
Technical Report, Mineral Resource and Mineral Reserve Update, Chelopech
Project, Chelopech, Bulgaria" dated March 21, 2014, in respect of the Mineral
Resource and Mineral Reserves estimates disclosed herein (the "Technical
Report"), is being filed today on SEDAR at www.sedar.com. Simon Meik, Vice
President, Processing, and Edgar Urbaez, Corporate Director, Technical Services,
both of DPM, who are QPs and not independent of the Company, have also reviewed
and approved the contents of this release.
The Mineral Resource and Mineral Reserve estimates contained herein may be
subject to legal, political, environmental or other risks that could materially
affect the potential development of such Mineral Resources. See the Technical
Report for more information with respect to the key assumptions, parameters,
methods and risks of determination associated with the foregoing Mineral
Resource estimates.
Cautionary note to U.S. Investors concerning estimates of Mineral Resources.
These estimates have been prepared in accordance with the requirements of
Canadian securities laws, which differ from the requirements of U.S. securities
laws. The terms "mineral resource", "measured mineral resource", "indicated
mineral resource" and "inferred mineral resource" are defined in NI 43-101 and
recognized by Canadian securities laws but are not defined terms under the U.S.
Securities and Exchange Commission ("SEC") Guide 7 ("SEC Guide 7") or recognized
under U.S. securities laws. U.S. investors are cautioned not to assume that any
part or all of mineral deposits in these categories will ever be upgraded to
mineral reserves. "Inferred mineral resources" have a great amount of
uncertainty as to their existence, and great uncertainty as to their economic
and legal feasibility. It cannot be assumed that all or any part of an "inferred
mineral resource" will ever by upgraded to a higher category. Under Canadian
securities laws, estimates of "inferred mineral resources" may not form the
basis of feasibility or pre-feasibility studies. U.S. investors are cautioned
not to assume that all or any part of an inferred mineral resource exists or is
economically or legally mineable. Accordingly, these mineral resource estimates
and related information may not be comparable to similar information made public
by U.S. companies subject to the reporting and disclosure requirements under the
U.S. federal securities laws and the rules and regulations thereunder, including
SEC Guide 7.
FORWARD LOOKING STATEMENTS
This news release contains "forward-looking statements" that involve a number of
risks and uncertainties. Forward-looking statements include, but are not limited
to, statements with respect to the future price of gold and silver, the
estimation of mineral reserves and resources, the realization of mineral
estimates, the timing and amount of estimated future production and output,
costs of production, capital expenditures, costs and timing of the development
of new deposits, success of exploration activities, permitting time lines,
currency fluctuations, requirements for additional capital, government
regulation of mining operations, environmental risks, unanticipated reclamation
expenses, title disputes or claims, limitations on insurance coverage and timing
and possible outcome of pending litigation. Often, but not always,
forward-looking statements can be identified by the use of words such as
"plans", "expects", or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or
"believes", or variations of such words and phrases or state that certain
actions, events or results "may", "could", "would", "might" or "will" be taken,
occur or be achieved. Forward-looking statements are based on the opinions and
estimates of management 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. Such factors include, among
others: the actual results of current exploration activities; actual results of
current reclamation activities; conclusions of economic evaluations; changes in
project parameters as plans continue to be refined; future prices of gold,
copper, zinc and
silver; possible variations in ore grade or recovery rates; failure of plant,
equipment or processes to operate as anticipated; accidents, labour disputes and
other risks of the mining industry; delays in obtaining governmental approvals
or financing or in the completion of development or construction activities,
fluctuations in metal prices, as well as those risk factors discussed or
referred to in Management's Discussion and Analysis under the heading "Risks and
Uncertainties" and other documents filed from time to time with the securities
regulatory authorities in all provinces and territories of Canada and available
at www.sedar.com. 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. 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.
DPM is a Canadian based, international gold mining company engaged in the
acquisition, exploration, development, mining and processing of precious metals.
The Company's principal operating assets include the Chelopech operation, which
produces a copper concentrate containing gold and silver, located east of Sofia,
Bulgaria; the Kapan operation, which produces a copper concentrate and a zinc
concentrate both containing gold and silver, located in southern Armenia; and
the Tsumeb smelter, a concentrate processing facility located in Namibia. DPM
also holds interests in a number of developing gold properties located in
Bulgaria, Serbia, and northern Canada, including interests held through its
53.1% owned subsidiary, Avala Resources Ltd., its 45.5% interest in Dunav
Resources Ltd. and its 12.1% interest in Sabina Gold & Silver Corp.
FOR FURTHER INFORMATION PLEASE CONTACT:
Dundee Precious Metals Inc.
Rick Howes
President & Chief Executive Officer
(416) 365-2836
rhowes@dundeeprecious.com
Dundee Precious Metals Inc.
Lori Beak
Senior Vice President, Investor & Regulatory
Affairs and Corporate Secretary
(416) 365-5165
lbeak@dundeeprecious.com
Dundee Precious Metals (TSX:DPM)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Dundee Precious Metals (TSX:DPM)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024
