Dundee Precious Metals Announces Discovery of Significant High-Grade Deposit at Čoka Rakita; Results Include Drill Intercept of 40 metres at 63.6 g/t Au and 0.11% Cu
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Dundee Precious Metals Announces Discovery of Significant High-Grade Deposit
at Čoka Rakita; Results Include Drill Intercept of 40 metres at 63.6 g/t Au and 0.11% Cu
Toronto, January 16, 2023 – Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or “the Company”) is
pleased to announce the discovery of a high-grade deposit at the Čoka Rakita exploration prospect in
eastern Serbia and report exceptional results from recent drilling. Čoka Rakita is located three
kilometres southeast of the Company’s Timok gold project and is 100% owned by DPM (see Figure 1).
Highlights
• Exceptional new high-grade intercepts, including:
▪ RADDMET01 – 40 metres at 63.46 g/t Au and 0.11 % Cu from 517 metres depth (including one
metre grading 2,140 g/t Au from 548 to 549 metres)
▪ RIDD001 – 71 metres at 3.46 g/t Au and 0.16% Cu from 454 metres depth
▪ RIDD004 – 65 metres at 13.40 g/t Au from 511 metres including 38 metres at 19.43 g/t Au from
537 metres depth
• Expands on positive results from previously drilled holes, which include:
▪ RADD013 – 36 metres at 4.41 g/t Au, including 6 metres at 11.44 g/t Au and 5 metres at 10.66
g/t Au, from 567 metres depth
▪ RADD020 – 26 metres at 7.52 g/t Au, including 6 metres at 24.94 g/t Au, from 533 metres depth
• Large defined footprint, deposit remains open: Shallow-dipping tabular body between 250 and
450 metres below surface, drilled over an area measuring 500 metres long, 250 metres wide and up
to 80 metres thick, which remains open in multiple directions (see Figures 2, 3 and 4).
• Significant additional exploration potential: Approximately 40,000 metres of infill, extensional and
target delineation drilling is planned for 2023, with a focus on further evaluating the deposit geometry,
grade continuity and mineral resource potential.
• Encouraging metallurgical results: Preliminary metallurgical test results indicate that the
mineralized material is amenable to conventional flotation and produces a clean gold concentrate,
achieving total combined (flotation and tails leach) gold recoveries of greater than 93%. Test work to
potentially improve overall gold recovery using a combined gravity and flotation circuit is planned for
2023.
• Interactive VRIFY 3D Model: Visit https://vrify.com/decks/12554 to view an interactive 3D model
highlighting these results.
“We are excited to announce these exceptional results from recent drilling completed at the Čoka Rakita
prospect in Serbia. Drilling has defined a large high -grade footprint that remains open in multiple
directions, which we believe provides additional upside potential,” said David Rae, President and Chief
Executive Office of Dundee Precious Metals.
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“The discovery of a high -grade deposit in close proximity to our Timok gold project is an exciting
development for the overall property package. Our activities in Serbia will now focus on exploration at
Čoka Rakita as we continue to assess the mineral resource potential of this new discovery.”
Čoka Rakita Drilling Program
As previously disclosed, exploration activities at the Čoka Rakita prospect resumed in the fourth quarter
of 2022 following receipt of a newly granted exploration licence. In this most recent drill program, DPM
drilled 8,750 metres and completed ten holes, with five additional holes currently ongoing. This program
was designed to follow -up on positive results returned from holes drilled prior to the expiry of the
previous exploration licence.1
Table 1: Significant new drill intercepts from the Čoka Rakita prospect
HOLEID EAST NORTH RL AZ DIP
FROM TO LENGTH AuEq Au Cu
(m) (m) (m) (g/t) (g/t) (%)
RADD021 572994 4895775 913 275 -55 331 337 6 1.59 1.43 0.12
RADD027 573485 4895816 885 263 -70 1118 1123 5 2.66 0.86 1.33
RADDMET001 573174 4895948 907 260 -48 446 454 8 1.57 1.50 0.05
and 492 498 6 1.46 1.18 0.21
and 517 557 40 63.60 63.46 0.11
including 521 551 30 84.20 84.05 0.11
and 658 668 10 2.71 2.51 0.15
RADDMET002 572902 4896041 912 247 -50 70 75.3 5.3 2.14 2.08 0.04
and 84 89 5 2.40 2.36 0.03
and 101 117 16 2.36 2.34 0.02
and 133 163 30 1.15 1.12 0.02
RIDD001 572989 4896010 915 292 -67 454 525 71 3.67 3.46 0.16
including 455 462 7 6.05 5.61 0.33
RIDD002 572971 4896089 903 290 -54 715 728 13 1.84 0.42 1.89
RIDD003 573198 4895770 940 273 -59 577 588 11 2.26 2.04 0.17
RIDD004 573176 4895949 907 262 -54 423 428 5 2.27 2.24 0.02
and 478 496 18 1.35 0.97 0.29
and 511 576 65 13.50 13.40 0.05
including 515 524 9 11.06 11.05 0.00
including 537 575 38 19.54 19.43 0.08
1) Coordinates are in UTM Zone 34 North WGS84 datum.
2) Intervals are reported at a cut-off grade of 1 g/t AuEq using 5 metres minimum length and 5 metres maximum internal dilution.
Higher grade ‘Including’ intervals are reported at a cut -off grade of 5 g/t AuEq using 5 metres minimum length and 3 metres
dilution.
3) The AuEq calculation is based on the following formula: Au g/t + 1.35 x Cu %, based on a gold price of $1,400/oz and a copper
price of $2.75/lb; and assumes metallurgical recoveries of 90% for gold and 90% for copper within the equivalency calculation.
4) No upper cuts have been applied.
5) Based on the current understanding of the geometry of the mineralized body, true widths are considered to be 90% or more
of the reported downhole interval.
1 Refer to the news release dated February 11, 2021, and the Management’s Discussion and Analysis for the period ended
March 31, 2021, both of which are available on our website at www.dundeeprecious.com.
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Some previously disclosed intercepts, which were drilled prior to 2022, have been updated following the
receipt of screen fire assay results. These updated results are presented in Table 2 , along with other
significant intercepts from pre-2022 drilling at Čoka Rakita.
Table 2: Significant previously reported drill intercepts from the Čoka Rakita prospect
HOLEID EAST NORTH RL AZ DIP
FROM TO LENGTH AuEq Au Cu
(m) (m) (m) (g/t) (g/t) (%)
RADD001 572785 4896010 889 134 -60 91 131 40 2.47 2.45 0.01
RADD004 572812 4895892 872 64 -60 44 51 7 1.90 1.89 0.00
RADD006 572901 4896033 916 244 -50 87 135 48 1.88 1.86 0.02
and 144 150 6 1.75 1.74 0.00
and 164 173 9 1.08 1.07 0.01
RADD010 573116 4895821 930 261 -57 196 202 6 2.48 2.46 0.01
and 496 507 11 2.91 2.88 0.02
and 514 535 21 2.61 2.48 0.10
and 574 579 5 2.43 2.18 0.19
RADD012 572990 4896008 917 273 -56 417 433 16 1.21 0.59 0.47
RADD013 573199 4895771 940 255 -60 567 603 36 4.42 4.41 0.01
including 569 575 6 11.46 11.44 0.02
including 581 586 5 10.68 10.66 0.02
RADD014 573254 4895880 926 276 -54 508 525 17 1.24 1.18 0.04
and 600 620 20 3.95 3.86 0.07
RADD015 572968 4896087 902 277 -55 455 464 9 1.03 0.34 0.51
RADD016 573042 4895851 918 275 -54 25 37 12 1.39 1.37 0.02
and 393 418 25 3.07 2.95 0.10
and 427 451 24 1.19 0.69 0.37
RADD020 573168 4895951 907 290 -53 533 559 26 7.63 7.52 0.08
including 550 556 6 25.07 24.94 0.10
1) Coordinates are in UTM Zone 34 North WGS84 datum.
2) Intervals are reported at a cut-off grade of 1 g/t AuEq using 5 metres minimum length and 5 metres maximum internal dilution.
Higher grade ‘Including’ intervals are reported at a cut -off grade of 5 g/t AuEq using 5 metres minimum length and 3 metres
dilution.
3) The AuEq calculation is based on the following formula: Au g/t + 1.35 x Cu %, based on a gold price of $1,400/oz and a copper
price of $2.75/lb; and assumes metallurgical recoveries of 90% for gold and 90% for copper within the equivalency calculation.
4) No upper cuts have been applied.
5) Based on the current understanding of the geometry of the mineralized body, true widths are considered to be 90% or more
of the reported downhole interval.
Geology of Čoka Rakita
The Čoka Rakit a prospect is located three kilometres southeast of the Bigar Hill sediment -hosted
deposit and forms part of the of the Timok Magmatic Complex (TMC) in eastern Serbia. The surface
footprint of the target, which was delineated by a combination of soil geoch emistry, alteration mapping
and geophysical signatures, extends more than 1,000 metres by 500 metres (see Figure 1).
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The latest phase of drilling has defined a manto -like zone of shallow -dipping gold -rich skarn
mineralization located within the contact zone of a carbonaceous sedimentary package and fertile diorite
intrusives. The high-grade mineralization starts at roughly 250 metres below surface and has been
drilled over an area measuring 500 metres long, 250 metres wide and up to 80 metres thick, and remains
open in multiple directions (see Figures 2, 3 and 4).
Three principal mineralization environments have been identified at Čoka Rakita:
1. Porphyry gold-copper mineralization:
o At shallow levels: structurally controlled and hosted by epiclastic rocks and volcanics; and
o At deeper levels: disseminated in syn-mineral diorites , often overlapped with endoskarn
formation on the contacts.
2. High-grade manto-like retrograde exoskarn gold -copper mineralization, hosted by carbonaceous
sandstones and located on the hanging wall of the mineralized porphyry. This is the most prospective
exploration target , providing the best exploration results in terms of assay grades and geologic
continuity.
3. Strata-bound conglomerate-hosted copper-gold-polymetallic mineralization , located at depth and
situated on the footwall of the mineralized porphyry.
Metallurgical Test Work Results
Metallurgical testing was completed on five composite samples from the Čoka Rakita prospect. Three
composites were drawn from the retrograde exoskarn formation, while the other composites represented
the upper epiclastic-hosted porphyry mineralization and the lower porphyry endoskarn mineralization.
The strata-bound conglomerate-hosted copper-gold-polymetallic formation has not yet been tested.
Preliminary metallurgical test results indicate that the retrograde skarn mineralization is amenable to
conventional flotation and has the potential to produce a clean gold concentrate, achieving overall gold
recoveries of greater than 93%.
Owing to the significant amount of coarse gold present in the retrograde exoskarn, gravity concentration
tests on those three composites demonstrated gold recoveries ranging from 51% to 64%. Flotation and
leach tests have not yet been performed on the gravity tails.
Rougher/scavenger and cleaner flotation tests for the same three composites showed gold recoveries
ranging from 74% to 81% into the cleaner flotation concentrate. Cleaner flotation tests indicated that a
clean, saleable gold concentrate could be produced from all the rougher concentrates. With leaching of
the flotation tails, total gold recoveries of 93% to 97% are achievable from the retrograde e xoskarn
mineralization.
Whole ore leach testing of the three exoskarn composites achieved gold recoveries ranging from 88%
to 93%, confirming the non-refractory nature of the mineralization. Metallurgical test results from all five
composites are summarized in Table 3.
Further testing to study combined gravity, flotation and leach recovery methods is planned for 2023.
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Table 3. Summary of metallurgical test program results
Mineralization Type Sample ID
Head
Assay
(g/t Au)
Recovery (%)
Gravity
Concentrate
Whole
Ore
Leach
Rougher
Flotation
Cleaner
Flotation
Flotation
Tailings
Leach
Combined
Flotation +
Tails Leach
Retrograde exoskarn Met Ra P01 2.68 50.73 88.27 75.13 73.71 73.15 92.94
Retrograde exoskarn Met Ra P03 3.91 57.18 88.70 75.84 73.52 74.77 93.32
Retrograde exoskarn Met Ra P05 18.54 63.63 93.01 82.28 81.26 82.32 96.69
Porphyry endoskarn Met Ra P02 0.55 40.45 87.97 79.53 77.21 76.68 94.69
Shallow epiclastic porphyry Met Ra P04 2.36 40.45 81.72 55.22 51.31 79.69 90.11
1) Metallurgical testing performed by Wardell Armstrong International (WAI).
2) All presented results based on samples with P80 particle size of 75 µm.
2023 Exploration Plans
Based on the results of a recent ground gravity survey, additional drilling is planned to test the full extent
of the Čoka Rakita gold-rich skarn target, which continues to show potential for growth. Plans include
extending holes from the current phase of drilling at depth to delineate the extents of deeper strata -
bound conglomerate -hosted copper -gold mineralization. Approximately 40,000 metres of infill ,
extensional and target delineation drilling is planned at Čoka Rakita in 2023 , with the primary focus of
further assessing the overall deposit geometry, grade continuity and mineral resource potential . This
includes infilling the current footprint on a 60m x 60m dril ling grid over the high -grade gold-rich skarn
target zone, as well as closer spaced drilling (20m x 20m) to assess the short -range continuity of the
mineralization.
Additionally, 10,000 metres of drilling is planned at the adjacent Umka exploration licence , which is
located to the south of Čoka Rakita and shares a similar geological environment. This work is intended
to follow-up on ground gravity surveys completed in 2022 and will involve integration of all other available
data in order to delineate additional undercover high-grade skarn targets.
Timok Gold Project
As indicated in the third quarter of 2022, given the p otential of this new high -grade discovery on the
advancement of the overall property package, the Company now expects to focus on further exploration
at Čoka Rakita in 2023. As a result, the Company is pausing further work on the Timok feasibility study.
As previously reported, the Timok gold project has a Probable Mineral Reserve estimate of 662,000
ounces of gold contained within 19.2 million tonnes at a grade of 1.07 g/t and an additional Indicated
Mineral Resource estimate of 1.3 million ounces of gold contained within 32.3 million tonnes at a grade
of 1.27 g/t.2 The above Mineral Reserve and Mineral Resource does not incorporate any drilling at Čoka
Rakita, which will be assessed as a separate high-grade deposit.
2 For more information regarding the Mineral Reserve and Mineral Resource estimate for the Timok gold project, refer to the
technical report “NI 43-101 Timok Project Pre-Feasibility Study, Zagubica, Serbia,” dated March 30, 2021, available on our
website at www.dundeeprecious.com and SEDAR at www.sedar.com.
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Figure 1. Overview map with project location.
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Figure 2. Tilted slice looking down along high-grade skarn mineralization.
1) Intercepts shown above for RADD023 and RIDD002 are not included in Tables 1 and 2, and start at 399 metres downhole
and 493 metres downhole, respectively. They have been included in Figure 2 to highlight how the high-grade exoskarn
pinches out near the margins of the lower grade endoskarn mineralization.
2) No upper cuts have been applied.
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Figure 3. Long-section through Čoka Rakita looking east, displaying drilling intercepts,
geology and exploration targets.