Dundee Precious Metals Extends Life of Mine Plan to 2031 for the Chelopech Mine in Bulgaria and Provides Updated Mineral Resource and Mineral Reserve Estimate (All monetary figures in this news release are expressed in U.S. dollars
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Dundee Precious Metals Extends Life of Mine Plan to 2031 for the Chelopech Mine in
Bulgaria and Provides Updated Mineral Resource and Mineral Reserve Estimate
(All monetary figures in this news release are expressed in U.S. dollars unless otherwise stated)
Toronto, March 30, 2023 – Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or “the Company”) is
pleased to provide an updated Mineral Resource and Mineral Reserve estimate for the Chelopech mine
in Bulgaria.
Highlights
• Mine life extended to 2031: Proven and Probable Mineral Reserves of 1.6 million ounces (“Moz.”)
of gold and 312 million pounds (“Mlbs.”) of copper supports a mine life that now extends to 2031. In
2022, DPM successfully added approximately 1.1 million tonnes (“Mt”) to Mineral Reserves,
replacing about half of its 2022 production depletion of 2.1 Mt.
• Growth of Measured and Indicated Mineral Resourc e base : Total Measured and Indicated
Mineral Resources, exclusive of Mineral Reserves, of 1.3 Moz. of gold and 281 Mlbs. of copper add
further potential to extend mine life.
• Additional potential with in-mine and brownfield exploration: Significant drilling program
planned for 202 3, including 4 4,000 metres of in -mine drilling for Mineral Resource development,
and 50,000 metres of brownfield drilling, focused on infill drilling at the Sharlo Dere prospe ct and
conceptual targets on the mine concession and Brevene exploration licence.
“The updated Mineral Reserve estimate demonstrates our consistent track record of replacing Mineral
Reserves at Chelopech,” said David Rae, President and Chief Executive Officer of Dundee Precious
Metals.
“With mining now expected to extend into 2031, a strong Mineral Resource base and increased in-mine
and brownfield exploration drilling, we believe there is strong potential for this trend to continu e at
Chelopech.”
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Updated Mineral Reserve and Resource Estimate
The 2022 Mineral Resource and Mineral Reserve estimate is based on a net smelter return (“NSR”)
equation that informs a profitability indicator that considers, among other things, metal price,
metallurgical recoveries, treatment charges and market forecasts.
The updated Proven and Probable Mineral Reserves at Chelopech of 1.55 Moz. of gold and 311.5 Mlbs.
of copper support a nine-year mine life that extends to 2031, excluding expected further conversions of
existing Mineral Resources and potential additional exploration success.
The updated Mineral Reserves estimate is shown below and is effective as of December 31, 2022:
Chelopech Proven and Probable Mineral Reserve Estimate
(As at December 31, 2022)
Ore Type
Reserve
Classification
Tonnes
(Mt)
Grades Metal Content
Au (g/t) Ag (g/t) Cu (%) Au (Moz.) Ag (Moz.) Cu (Mlbs.)
General Proven 8.1 2.47 6.8 0.78 0.65 1.77 140.1
Probable 9.5 2.70 8.1 0.81 0.82 2.48 168.8
Block 700 Probable 0.1 4.13 113.1 0.03 0.02 0.47 0.1
Block 152 Probable 0.5 4.04 4.3 0.23 0.06 0.07 2.5
All Proven 8.1 2.47 6.8 0.78 0.65 1.77 140.1
Probable 10.1 2.78 9.3 0.77 0.90 3.01 171.4
Total 18.2 2.64 8.2 0.77 1.55 4.78 311.5
Footnotes:
1. The Mineral Reserves disclosed herein have been estimated in accordance with the CIM Definition Standards for Mineral Resources a nd
Mineral Reserves (the “CIM Definition Standards”, adopted by CIM Council on May 10, 2014).
2. Mineral Reserves have been depleted for mining as of December 31, 2022.
3. The Inferred Mineral Resources do not contribute to the financial performance of the project and are treated in the same way as waste.
4. The reference point at which the Mineral Reserves are defined is where the ore is deli vered to the crusher.
5. Long term metal prices assumed for the evaluation of the Mineral Reserves are $1, 500/oz. for gold, $17.00/oz . for silver, and $ 3.25/lb. for
copper.
6. Mineral Reserves are based on a net smelter return-less-costs cut-off value of $0/t. The total cost applied was $55/t which is a sum of operational
costs of approximately $50/t and sustaining capital of $5/t.
7. All blocks include a complex NSR formula that differs for the three ore types within the Mineral Reserve and Mineral Resource. The NSR formula
utilizes long-term metal price s, metallurgical recoveries, payability terms , treatment charges, refining charges, penalty charges (deleterious
arsenic), concentrate transport costs, and royalties. For clarity of understanding of ore value, a simplified formula is pres ented here that
correlates to the complex formula for the averag e head grade . The simplified formula for general ore which comprises 97% of the Mineral
Reserve is NSR $/t = 26.091 x Cu% + 0.196 x Ag_g//t + 30.773 x Au_g/t.
8. Mineral Reserves account for unplanned mining dilution and ore loss that varies by orebody dimension and experience per mining block area ,
which on average were 8.1% for unplanned ore loss and 7.3% for unplanned dilution.
9. Mineral Reserves account for planned mining dilution and mining recovery through stope optimi zation and stope design. The stopes are
optimized to maximize net cash flow within the constraints of dilution and orebody extractable geometry. The planned dilution and recovery
depend on geotechnical, mineralization continuity controls and ore zone dimensions.
10. All stopes have been verified that they are profitable after considering the cost of capital development.
11. There is no known likely value of mining, metallurgical, infrastructure, permitting or other relevant factors that could materially affect the estimate.
The final one and a half years of operation occurs after the expiry of the mining concession contract. It is the opinion of DPM that the mining
permit will be extended.
12. The Proven Mineral Reserve includes broken stocks of 58 kt at 2.54 g/t Au, 5.4 g/t Ag and 0.64% Cu as well as stockpiles of 5 kt at 3.74 g/t Au,
5.0 g/t Ag and 0.75% Cu.
13. Sum of individual table values may not equal due to rounding .
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A three-dimensional block model using 10 metres (E) x 10 metres (N) x 10 metres (RL) cell dimensions
was created. This model honours wireframe volumes and was based on geological interpretations of
the mineralization. Grade estimation of economic elements of interest, namely copper, gold and silver
were completed, with the addition of potentially deleterious elements (sulphur and arsenic) using
ordinary kriging. Block tonnage was estimated from the material in-situ dry bulk density values by using
ordinary kriging where adequate density samples were available, and from the positive relationship to
sulphur grade where density sampling was limited.
The Mineral Resource estimate has been depleted by all mining and development work completed as
of December 31, 202 2 and is reported using a NSR calculation based on assumed long-term metal
prices, current operating costs and metal revenue to meet the “reasonable prospects for eventual
economic extraction” criteria.
Measured and Indicated Mineral Resources , exclusive of Mineral Reserves , increased by 2.7Mt
compared with 202 1, as a result of changes to NSR parameters, grade estimation and interpretation ,
partly offset by conversion to Mineral Reserves.
The Mineral Resource estimate is shown below and is effective as at December 31, 2022:
Chelopech Mineral Resource Estimate, exclusive of Mineral Reserves
(As at December 31, 2022)
Classification Tonnes Gold Silver Copper
(Mt) Grade (g/t) Moz. Grade (g/t) Moz. Grade (%) Mlbs.
Measured 8.5 2.54 0.695 8.57 2.344 0.83 156
Indicated 7.9 2.39 0.609 10.06 2.566 0.71 125
Total
Measured &
Indicated
16.4 2.47 1.303 9.29 4.909 0.78 281
Inferred 4.4 1.93 0.276 8.57 1.225 0.70 69
Footnotes:
1. The Mineral Resources disclosed herein have been estimated in accordance with the CIM Definition Standards for Mineral Resources and
Mineral Reserves (CIM, 2014).
2. Tonnages are rounded to the nearest 0.1 million tonnes to reflect that this is an estimate.
3. Metal content is rounded to the nearest 1 thousand ounces or 1 million pounds to reflect that this is an estimate.
4. The Mineral Resources are reported exclusive of Mineral Reserves.
5. Metal prices assumed for the evaluation of the Mineral Resources are $1,700 /oz. for gold, $17.00/oz. for silver, and $3.75/lb. for copper.
6. Mineral Resources are based on a NSR less costs cut-off value of US$0/t in support of reasonable prospects of eventual economic
extraction. The total cost applied was approximately $55/t which is a sum of operational costs of approximately $50/t and sustaining capital of
approximately $5/t.
7. All blocks include a complex NSR (Net Smelter Return) formula that differs for the three ore types. The NSR formula utilises long term metal
price, metallurgical recoveries, payability terms. treatment charges, refining charges, penalty charges, concentrate transport costs, and
royalties. For clarity of understanding of ore value, a simplified formula is presented here for the Measured and Indicated Resource where
NSR US$/t = 33.870 x Cu % + 0.171 x Ag g/t + 37.937 x Au g/t.
Life of Mine Plan
The table below shows the updated LOM plan, reflecting the updated Mineral Reserve estimate. The
updated LOM plan adds approximately 24,000 oz. of gold production and 9 Mlbs. of copper production
between 202 3 and 203 1, relative to the previous mine plan outlined in the news release “ Dundee
Precious Metals Provides Updated Mineral Resource and Mineral Reserve Estimates for the Chelopech
Mine in Bulgaria” dated March 31, 2022.
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The tables below show the current LOM plan compared to the previous 2022 LOM plan.
Current 2023 Life of Mine Plan
Unit Total /
Average 2023 2024 2025 2026 2027 2028 2029 2030 2031
Total Ore Processed Mt 18.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 0.6
Grade
Au g/t 2.64 2.84 2.93 2.99 2.76 2.52 2.27 2.89 2.16 1.91
Cu % 0.77 0.84 0.72 0.80 0.69 0.84 0.75 0.82 0.74 0.75
Recoveries –
Copper Concentrate
Au % 52.6 55.8 56.2 55.6 54.4 41.5 55.5 49.6 52.2 48.2
Cu % 84.4 83.5 83.4 83.6 85.3 84.2 86.0 84.2 86.6 78.2
Recoveries – Pyrite
concentrate
Au % 24.9 24.1 24.2 24.4 24.8 25.8 25.8 24.7 26.1 24.8
Total Au Production K oz. 1,202 160 167 169 155 120 131 152 120 28
Total Cu Production Mlbs. 289 37 32 36 32 38 34 37 34 9
Previous 2022 Life of Mine Plan
Unit Total /
Average 2023 2024 2025 2026 2027 2028 2029 2030
Total Ore Processed Mt 17.1 2.2 2.2 2.2 2.2 2.2 2.2 2.2 1.71
Grade
Au g/t 2.69 2.73 2.94 2.94 2.63 2.71 2.56 2.53 2.47
Cu % 0.80 0.90 0.82 0.78 0.76 0.74 0.81 0.91 0.62
Recoveries –
Copper Concentrate
Au % 54.4 55.8 57.8 58.3 55.6 56.5 50.9 55.3 40.4
Cu % 84.9 84.0 84.3 85.5 84.7 84.8 85.3 87.2 82.6
Recoveries – Pyrite
concentrate
Au % 25.0 25.3 25.0 24.8 25.1 24.1 25.6 25.9 24.2
Total Au Production K oz. 1,177 157 172 173 150 155 138 145 88
Total Cu Production Mlbs. 280 37 33 32 31 30 34 39 19
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Three-Year Outlook
The updated Mineral Reserve estimate is in-line with the Company’s previously issued 202 3 guidance
and three-year outlook for Chelopech, as shown below.
2022
Results
2023
Guidance
2024
Outlook
2025
Outlook
Metals contained in concentrate produced
Gold (K oz.)
Copper (Mlbs.)
179
31
150 – 170
30 – 35
160 – 180
29 – 34
160 – 185
29 – 34
Cost of sales per tonne of ore processed(1)
($/t) 63 N/A N/A N/A
Cash cost per tonne of ore processed(1)
($/t) 50 53 – 58 N/A N/A
Sustaining capital expenditures
($ millions) $24 20 – 24 14 – 18 12 – 15
1. Cost of sales per tonne of ore processed represents Chelopech cost of sales divided by the volume of ore processed. Cash cost per tonne of ore
processed is a non-GAAP ratio and has no standardized meaning under International Financial Reporting Standards (“ IFRS”) and may not be
comparable to similar measures presented by other companies. Refer to the “Non-GAAP Financial Measures” section contained in the Company’s
Management’s Discussion and Analysis (the “MD&A”) for the year ended December 31, 2022 commencing at page 44, which is available on the
Company’s website at www.dundeeprecious.com and on SEDAR at www.sedar.com, for a detailed description and reconciliation of this measure
to the most directly comparable measure under IFRS.
For more information regarding the Company’s 202 3 guidance and three -year outlook, including key
assumptions, qualifications and risks associated thereto, refer to the MD&A for the year ended
December 31, 202 2, issued on February 1 6, 202 3, available on the Company’s website at
www.dundeeprecious.com and on SEDAR at www.sedar.com.
Further extending mine life through additional in-mine and brownfield exploration
DPM continues to aggressively focus on extending Chelopech’s mine life through its successful in-mine
exploration program and a growing brownfield exploration program, which for 2023 includes:
• Approximately 44,000 metres of in -mine drilling for Mineral Resource development with
particular focus on the upper levels of Blocks 103, 150, 151 and 153, Target 11 and Target 147
zones (see Figure 1).
• Approximately 50,000 metres of brownfield exploration, aiming to test conceptual targets on the
Brevene exploration licence, which surrounds the Sveta Petka exploration licence, as well as in
the Chelopech mine concession (see Figure 1).
The brownfield exploration program is designed to follow-up on conceptual targets on the mine
concession, including testing for deeper and lateral extensions of the Ch elopech deposit, as well as
targets on the Brevene exploration licence.
A focused infill drilling program is planned at Sharlo Dere, which is located on the east flank of the mine.
The planned drilling will be used to potentially support the inclusion of this prospect within subsequent
Mineral Resource estimates for the Chelopech mine. Additionally, extensional drilling will test the Target
11 and Sharlo Dere Deeps targets, both of which are under-explored and demonstrate strong potential
to host additional mineral resources.
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In March 2023, the Company filed a Commercial Discovery application with the Bulgarian authorities for
the Sveta Petka exploration licence, which includes the Wedge, West Shaft, Krasta and Petrovden
prospects. The Sveta Petka exploration licence is expected to be registered as a Commercial Discovery
by the end of 2023 and subsequent to that, the Company intends to apply for concession rights in 2024.
In line with DPM’s 2023 guidance, the Company has budgeted between $5 million to $6 million on in -
mine exploration activities at Chelopech, and $5 million to $6 million for brownfields exploration
activities.
Figure 1: Plan view of the Chelopech mining concession and Sveta Petka and Brevene exploration
licences, indicating target zones for DPM’s 2023 in-mine and brownfield exploration program.
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Technical Information
The Mineral Resource and Mineral Reserve estimates for the Chelopech mine and other scientific and
technical information which supports this news release was prepared by DPM with review and guidance
at various stages provided by CSA Global (UK) Ltd. (“CSA Global”) . The Qualified Persons (“QP”) are
satisfied as to the appropriateness and quality of the technical work completed and accept responsibility
for the disclosure, in accordance with Canadian regulatory requirements set out in National Instrument
43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). The QP for the Mineral Resource
estimate is Galen White, BSc, FAusIMM, Partner and Principal Consultant of CSA Global (UK) Limited,
and the QP for the Mineral Reserve estimate is Andrew Sharp, B.Eng. (Mining), P.Eng. (BC), FAusIMM,
Associate Principal Mining Engineer of CSA Global. Both Galen White and Andrew Sharp are Qualified
Persons as defined under NI 43-101, and are independent of the Company.
Ross Overall, Corporate Mineral Resource Manager, of the Company, who is a QP, as d efined under
NI 43-101, has reviewed and approved the contents of this news release.
About Dundee Precious Metals Inc.
Dundee Precious Metals Inc. is a Canadian -based international gold mining company with operations
and projects located in Bulgaria, Namibia, Ecuador and Serbia. The Company’s purpose is to unlock
resources and generate value to thrive and growth together. This overall purpose is supported by a
foundation of core values, which guides how the Company conducts its business and i nforms a set of
complementary strategic pillars and objectives related to ESG, innovation, optimizing our existing
portfolio, and growth. The Company’s resources are allocated in -line with its strategy to ensure that
DPM delivers value for all of its stakeholders. DPM’s shares are traded on the Toronto Stock Exchange
(symbol: DPM).
For further information please contact:
David Rae
President and Chief Executive Officer
Tel: (416) 365-5092
Jennifer Cameron
Director, Investor Relations
Tel: (416) 219-6177
Cautionary Note Regarding Forward-Looking Statements
This news release contains “forward looking statements” or “forward looking information” (collectively,
“Forward Looking Statements”) that involve a number of risks and uncertainties. Forward Looking
Statements are statements that are not historical facts and are generally, but not always, identified by
the use of forward looking terminology such as “plans”, “expects”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “outlook”, “intends”, “anticipates”, “believes”, or variations of such words and
phrases or that state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be
taken, occur or be achieved, or the negative of any of these terms or similar expressions . The Forward
Looking Statements in this news release relate to, among other things; the estimation of Mineral
Reserves and Mineral Resources and the realization of such mineral estimates; the LOM; production,
processing and recoveries forecasts; financial metrics, including those set out in the three-year outlook
provided by the Company; success of exploration activities, the price of gold, copper, and silver, and
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other commodities; and successful registration of the Sveta Petka exploration licence as a Commercial
Discovery. Forward Looking Statements are based on certain key assumptions and the opinions and
estimates of management and the QPs, 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. In addition to
factors already discussed in this news release, such factors include, among others, risks relating to the
Company’s business, including possible variations in ore grade and recovery rates; uncertainties
inherent to the conclusions of economic evaluations and economic studies ; changes in project
parameters, including schedule and budget, as plans continue to be refined; uncertainties with respect
to actual results of current exploration activities; uncertainties and risks inherent to developing and
commissioning new mines into production, which may be subject to unforeseen delays; uncertainties
inherent to the estimation of Mineral Reserves and Mineral Resources, which may not be fully realized;
uncertainties inherent with conducting business in foreign jurisdictions where corr uption, civil unrest,
political instability and uncertainties with the rule of law may impact the Company’s activities; the impact
of the conflict in the Ukraine and COVID-19, including resulting changes to the Company’s supply chain
and costs of supplies; product shortages; delivery and shipping issues; closures and/or failure of plant,
equipment or processes to operate as anticipated; employees and contractors become infected with
COVID-19 or being affected by the war; lost work hours; labour force shorta ges; fluctuations in metal
and acid prices, toll rates and foreign exchange rates; limitation on insurance coverage; accidents,
labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or
financing or in the comple tion of development or construction activities; actual results of current and
planned reclamation activities; opposition by social and non -government organizations to mining
projects and smelting operations; unanticipated title disputes; claims or litigation; cyber attacks and other
cybersecurity risks; as well as those risk factors discussed or referred to in any other documents
(including without limitation the Chelopech Technical Report and the Company’s most recent Annual
Information Form) filed from ti me 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 is 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 cau se
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 stat ements. 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 Forward Looking
Statements if cir cumstances or management’s estimates or opinions should change. Accordingly,
readers are cautioned not to place undue reliance on Forward Looking Statements.