The golden asset Dundee Precious Metals

THE GOLDEN ASSET THE GOLDEN ASSET

Dundee Precious Metals is a Canada-based, international gold mining company engaged in the acquisition, exploration, development, mining and processing of precious metals. Its flagship asset is Chelopech, a gold, copper and silver mine in Bulgaria

The Chelopech underground gold-copper mine has a strong track record of delivering sound, consistent operational performance. Chelopech is a centre of excellence for innovation and the company continues to optimise performance through its focus on opportunities with the potential to enhance revenue and reduce costs.

The Chelopech mine is located in central-western Bulgaria, approximately 70 kilometres east of Sofia, the national capital, on the southern flank of the Balkan Ranges. The mining licence covers an area of 266 hectares, including the Chelopech mining operation itself and the surrounding area.

Dundee Precious Metals owns the land where the facilities are located and operates under a concession agreement that was granted by the Bulgarian government in 1999 for a period of 30 years. Proven and probable mineral reserves at Chelopech are currently over 45 tonnes of gold and over 150,000 tonnes of copper, supporting an eight-year mine life.

High-quality, low-cost asset

The mine began operations in 1954, then as part of several stateowned enterprises. Dundee Precious Metals (DPM) acquired the Chelopech mining operations in 2003 and since then has invested considerable amounts to transform it into a high-quality, optimised mine that generates strong operating results while meeting international standards for worker safety, environmental protection, and sustainable development.

Today the Chelopech mine is an industry-leader in Bulgaria. Chelopech has good infrastructure due to its proximity to major roads, power lines, communication facilities, water sources and the town of Pirdop. The principal rail and road links between Sofia and the country’s largest port Bourgas, located on the Black Sea, pass through the village of Chelopech.

The mine is recognised as a leader in digital innovation with 100% reliable wi-fi coverage at 600 metres below ground and real-time data transfer systems. The commissioning of the first deep learning autonomous drone in an underground environment in 2019 established the Chelopech mine as a technological leader in the global mining industry. Environmentally responsible operation

The company has developed a comprehensive programme to ensure the protection of water, air, soil, biodiversity, and to reduce its use of energy. Investment and improved management have resulted in large-scale innovations in production and significant benefits to the environment.

Reduction of greenhouse gas emissions, the use of renewable energy sources and improving energy efficiency as well as effective management of mining waste are all important topics for the company. The process efficiencies and improved management systems introduced since 2004 have substantially reduced DPM’s environmental impact and its carbon footprint.

In 2004, the company embarked on a project to reclaim land affected by historical mining, to restore the land as far as possible to its original natural condition. Indigenous tree and shrub species have been planted, to reclaim the habitats of several animal species. Since then, a total of 22.3 hectares of land has been reclaimed and more than 150,000 trees and shrubs have been planted.

Updated mineral reserve

Over the last year, activities in the mine progressed as planned and in March 2022, Dundee Precious Metals announced a life of mine (LOM) extension to 2030 and an update to mineral resource and mineral reserve estimates of 10%.

The updated LOM plan reflects changes relative to the previous mine plan that include improved metallurgical recoveries, concentrate terms and a reduction in the cut-off value, which maximises net present value. Production increased by approximately 8 tonnes of gold and 21,300 tonnes of copper between 2022 and 2031, reflecting higher recoveries for gold and copper.

The updated mineral reserve estimate is in line with the Company’s previously issued 2021 guidance and three-year outlook for Chelopech, with the all-in sustaining cost per ounce of gold sold for 2023 and 2024 expected to trend toward the lower end of the range as increased volumes of Chelopech concentrate are processed by third-party smelters.

Improved potential

A significant drilling programme is planned for 2022, including 44,000 metres of in-mine drilling and 50,000 metres of brownfield drilling to support a commercial discovery application.

“The optimised life of mine plan at Chelopech results in higher gold and copper production and allows us to extend the mine’s life to 2030,” said David Rae, President and Chief Executive Officer of Dundee Precious Metals.

“Our updated mineral reserve estimate is an indication of Chelopech’s consistent track record of replacing mineral reserves, and we believe there is strong potential to continue this trend going forward.”

He affirmed that DPM will continue to focus on extending Chelopech’s mine life through its successful in-mine exploration programme and a growing brownfield exploration programme, which for 2022 includes in-mine drilling for mineral resource development as well as brownfield exploration in other near-mine targets in the mining concession area. n