TORONTO, March 14, 2019 – Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or the “Company”) is pleased to announce that it has achieved first gold concentrate production from its Krumovgrad open pit gold mine.
“After many years of hard work and cooperation with local stakeholders, we are extremely excited to announce that we have reached this pivotal milestone for our Company, with first gold concentrate production at the Krumovgrad gold mine in southern Bulgaria,” stated Rick Howes, President and CEO. “With commercial production expected in the second quarter of this year, this is the beginning of a new chapter for DPM, which will deliver significant growth in gold production and free cash flow. We would also like to acknowledge the hard work and congratulate the team on the achievement of this key milestone.”
Following cold commissioning of the processing plant facilities, 650 tonnes of ore was processed through the crushing, grinding and rougher flotation circuits at a rate of approximately 100 tonnes per hour, producing the first concentrate from the Ada Tepe deposit. In the coming weeks the focus will be on beginning the ramp-up and optimization of the processing plant to achieve the design throughput of 105 tonnes per hour and the design gold recovery of 85%.
The forecast capital cost remains at US$164 to US$166 million, compared with the original estimate of US$178 million. As at February 28, 2019 construction of the project was 97% complete with US$147 million incurred.
Gold contained in concentrate at Krumovgrad is expected to be between 55,000 and 75,000 ounces in 2019 (refer to the DPM 2019 guidance press release entitled “Dundee Precious Metals Announces 2018 Fourth Quarter and Annual Results and 2019 Guidance” dated February 12, 2019 found on the Company website at www.dundeeprecious.com and filed on SEDAR at www.sedar.com). There is significant operating flexibility during ramp-up given the various grades of stockpiled mined ore at Krumovgrad. Based on the Mineral Reserves for the Krumovgrad gold project (refer to the technical report entitled “Revised NI 43-101 Technical Report, Ada Tepe Deposit, Krumovgrad Project, Bulgaria” dated November 7, 2017 and filed on SEDAR at www.sedar.com), Krumovgrad will produce on average 100,000 ounces of gold contained in concentrate per year for the first five years of production, with a life of mine average of approximately 85,000 ounces at a US$404 per ounce cash cost.
The Mineral Resource and Mineral Reserve estimates for the Krumovgrad project and other scientific and technical information which support this press release were 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 were reviewed and approved by, as relates to Mineral Resources, Galen White, BSc (Hons) FAusIMM FGS, Director and Principal Consultant of CSA, and Julian Bennett, BSc ARSM FIMMM CEng, as relates to Mineral Reserves. Both Galen White and Julian Bennett are independent Qualified Persons (“QP”), as defined under NI 43-101. The NI 43-101 technical report (the “Krumovgrad Technical Report”) entitled “Revised NI 43-101 Technical Report, Ada Tepe Deposit, Krumovgrad Project, Bulgaria” originally dated March 21, 2014 and re-issued November 7, 2017, in respect of the study for the construction and operation of its Krumovgrad gold project disclosed herein, was filed November 7, 2017 on SEDAR at www.sedar.com.
SOURCE: DUNDEE PRECIOUS METALS
DATE: MARCH 14, 2019