Dundee Precious Metals Achieves Another Major Milestone with Commercial Production at Its Krumovgrad Project
DUNDEE PRECIOUS METALS ACHIEVES ANOTHER MAJOR MILESTONE WITH
COMMERCIAL PRODUCTION AT ITS KRUMOVGRAD PROJECT
Toronto, Ontario, June 17, 2019 – Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or the
“Company”) is pleased to announce that it has achieved commercial production at its Krumovgrad
project. With the achievement of this milestone and the transition to an operating mine , going
forward DPM will refer to the operation as Ada Tepe, as it is known locally in Bulgaria.
“Commercial production at Ada Tepe marks the beginning of a new chapter for DPM, delivering
significant growth in gold production and free cash flow,” stated Rick Howes, President and CEO.
“I would like to congratulate all of our employees for achieving this key milestone safely and under
budget as well as our local stakeholders for their many years of cooperation and support for this
project.”
DPM announced first concentrate production on March 14, 2019 and achieved commercial
production on June 8, 2019 by exceeding an average of 60% of design throughput capacity and
recovery over a period of 30 consecutive days. During this period, the plant has demonstrated it
can achieve close to 100% of throughput design capacity and in June, recoveries have continued
to ramp-up beyond the commercial production threshold level. Ramp-up to full design capacity is
progressing well and is expected to occur in the third quarter of 2019.
The forecast capital cost remains at $164 to $166 million, compared with the original estimate of
$178 million. As at May 31, 2019, construction of the project was 99.9% complete. Aggregate
cash outlays for the project were $152 million with the remaining outlays related primarily to
holdbacks.
Gold contained in concentrate at Ada Tepe is expected to be between 55,000 and 75,000 ounces
in 2019 (refer to the DPM First Quarter Report dated March 31, 2019 found on the Company
website at www.dundeeprecious.com and filed on SEDAR at www.sedar.com), producing 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 $404 per ounce cash
cost (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).
Technical Information
The Mineral Resource and Mineral Reserve estimates for Ada Tepe and other scientific and
technical information which support this press release w ere 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 “ Ada Tepe 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
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operation of Ada Tepe disclosed herein, was filed November 7, 2017 on SEDAR at
www.sedar.com.
Ross Overall, Corporate Senior Resource Geologist of DPM, who is a QP and not independent
of the Company, has reviewed and approved the contents of this release.
About Dundee Precious Metals
Dundee Precious Metals Inc. is a Canadian based, international gold mining company engaged
in the acquisition of mineral properties, exploration, development, mining and processing of
precious metals. The Company's operating assets include the Chelopech op eration, which
produces a gold-copper concentrate containing gold, copper and silver and a pyrite concentrate
containing gold, located east of Sofia, Bulgaria; the Ada Tepe operation, which produces a gold
concentrate containing gold and silver, located in southern Bulgaria; and the Tsumeb smelter, a
complex copper concentrate processing facility located in Namibia. DPM also holds interests in a
number of developing gold and exploration properties located in Canada and Serbia, and its
10.3% interest in Sabina Gold & Silver Corp.
Cautionary Note Regarding Forward Looking Statements
Certain statements and other information included in this press release and our other disclosure
documents constitute “forward looking statements” or “forward looking informatio n” within the
meaning of applicable securities legislation, which we refer to collectively hereinafter as “Forward
Looking Statements”. Forward Looking Statements are statements that are not historical facts
and are generally, but not always, identified b y the use of forward looking terminology such as
“plans”, “expects”, or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”,
“forecasts”, “outlook”, “intends”, “anticipates”, or “does not anticipate”, or “believes”, or variations
of such words and phrases or that state that certa in actions, events or results “may”, “could”,
“would”, “might” or “will” be taken, occur or be achieved. The Forward looking statements in this
press release relate to, among other things: certain statements with respect to the estimated
capital costs, key project operating costs and financial metrics and other project economics with
respect to Ada Tepe ; the timing of the completion of construction, commissioning activities,
commencement of production and the receipt of the operating permit in respect of Ada Tepe;
price of gold, copper and silver; the estimation of Mineral Reserves and Mineral Resources and
the realization of such mineral estimates; the timing and amount of estimated future production
and output, life of mine, costs of production, cash costs and other cost measures, capital
expenditures, rates of return at Ada Tepe and other deposits and timing of the development of
new deposits; results of economic studies; success of permitting activities, permitting time lines;
currency fluctuations; requi rements for additional capital; government regulation of mining and
smelting operations; and environmental risks. Forward Looking Statements are based on certain
key assumptions and the opinions and estimates of management and Qualified Persons (in the
case of technical and scientific information), 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 d ifferent from any other
future results, performance or achievements expressed or implied by the Forward Looking
Statements. In addition to factors already discussed in this document, such factors include,
among others: conclusions of economic evaluations a nd economic studies; changes in project
parameters as plans continue to be refined; 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 mi ning industry; uncertainties and risks inherent to developing and
commissioning new mines into production, such as Ada Tepe , which may be subject to
unforeseen delays, costs or other issues; 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; social and non -governmental organizations
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(“NGO”) opposition to mining projects; fluctuations in metal and acid prices, toll rates and foreign
exchange rates; unanticipated title disputes; claims or litigation; limitation on insurance coverage;
cyber-attacks; differences in U.S. and Canadian practices for reporting Mineral Reserves and
Mineral Resources; lack of suitable infrastructure or damage to existing infrastructure; delays in
obtaining or failure to obtain government permits, or non-compliance with permits; as well as those
risk factors discussed or referred to in any other documents (including without limitation t he
Company’s most recent Annual Information Form) 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 i s 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 Forwar d 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.
For further information, please contact:
DUNDEE PRECIOUS METALS INC.
Rick Howes
President and
Chief Executive Officer
Tel: (416) 365-2836
Janet Reid
Manager, Investor Relations
Tel: (416) 365-2549