Dundee Precious Metals Extends Life of Mine Plan to 2032 for the Chelopech Mine in Bulgaria; Provides Mineral Reserve and Mineral Resource Update and Highlights from Exploration Activities (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 2032 for the
Chelopech Mine in Bulgaria; Provides Mineral Reserve and Mineral Resource Update
and Highlights from Exploration Activities
(All monetary figures in this news release are expressed in U.S. dollars unless otherwise stated)
Toronto, November 29, 2023 – Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or “the Company”)
is pleased to provide an interim update to the Mineral Resource and Mineral Reserve estimate and life
of mine (“LOM”) plan for its Chelopech mine in Bulgaria. In 2023, DPM advanced its annual update for
Mineral Reserves and Mineral Resources in order to better align with the Company’s planning and
budgeting cycle.
Highlights
• Mine life extended to 2032: Proven and Probable Mineral Reserves of 1.6 million ounces (“Moz.”)
of gold and 305 million pounds (“Mlbs.”) of copper supports a mine life that now extends to 2032.
DPM successfully added 1% to contained ounces of gold with contained pounds of copper
decreasing by 2% relative to the previous Mineral Reserve estimate.
• Updated LOM plan with improved grades and recoveries : The updated LOM plan adds
approximately 128,000 ounces of recovered gold and 9 Mlbs. of recovered copper between 2024
and 2032. During this period, average LOM gold grade and copper grades increased by 5% and
3% respectively, and recoveries for gold increased by approximately 5%.
• Updated Measured and Indicated and Inferred Mineral Resource: Total Measured and Indicated
Mineral Resources, exclusive of Mineral Reserves, of 1.2 Moz. of gold and 265 Mlbs. of copper add
further potential to extend mine life. Additional Inferred Mineral Resource of 0.274 Moz. of gold and
67 Mlbs. of copper.
• Upside potential with in-mine and brownfield exploration: DPM continues to focus on extending
Chelopech’s mine life through its successful in -mine exploration program and an aggressive
brownfield exploration program. Positive results from drilling at the Sharlo Dere West and Sharlo
Dere prospects, located within the mine concession and proximal to existing Chelopech
underground development, highlight potential for further mine life extensions. Highlights from drilling
include 37.5 metres at 7.34 g/t AuEq, 5.69 g/t Au and 0.98% Cu from 184.5 metres depth (including
27 metres at 9.70 g/t AuEq, 7.58 g/t Au and 1.26% Cu from 193.5 metres) on EXT_555_04.1 DPM
has completed its initial phase of infill drilling with the objective of including a Mineral Resource
estimate for Sharlo Dere within its next Mineral Resource update for the Chelopech mine.
“I am pleased to report that we have continued our consistent track record of extending mine life at
Chelopech,” said David Rae, President and Chief Executive Officer of Dundee Precious Metals.
1 Refer to the Appendix on pages 16 to 20 of this news release for the full results from drilling at the Sharlo Dere and Sharlo
Dere West prospects.
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“Next month will mark the 20 -year anniversary of DPM ’s acquisition of the Chelopech mine. Over this
period, we have transformed the mine into a modern and highly efficient operation, developed a strong
local team and established strong relationships with local stakeholders.
“Chelopech today has a mine life that extends to 2032 based on Mineral Reserves , a strong Mineral
Resource base, compelling exploration prospects and significant opportunities to continue our strong
track record of mine life extensions.”
Updated Mineral Reserve and Resource Estimate
The 2023 Mineral Reser ve and Mineral Resource estimate reflects the results of in -mine drilling and
production depletion as at May 31, 2023.
The updated Proven and Probable Mineral Reserve estimate for Chelopech of 1.6 Moz. of gold and 305
Mlbs. of copper support a nine -year mine life that extends to 203 2, not including potential for further
conversions of existing Mineral Resources and potential additional exploration success. Proven and
Probable Mineral Reserves decreased by 0.6 Mt of ore with contained gold increasing by 22,000 ounces
and contained copper decreasing by 6.3 Mlbs. relative to the previous 2022 Mineral Reserve estimate.
The updated Mineral Reserves estimate is shown below:
Chelopech Proven and Probable Mineral Reserve Estimate
(As at May 31, 2023)
Classification Tonnes
(kt)
Grades Metal Content
Au (g/t) Ag (g/t) Cu (%) Au (Koz.) Ag (Koz.) Cu (Mlbs.)
Proven Stopes 6,346 2.78 7.50 0.83 567 1,531 115.7
Broken stocks 48 3.45 8.53 0.83 5 13 0.9
Stockpiles 17 3.33 6.79 0.78 2 4 0.3
Total Proven 6,412 2.79 7.51 0.83 575 1,548 116.9
Probable Stopes 10,146 2.76 9.34 0.76 902 3,048 169.0
Development 1,082 2.78 8.63 0.81 97 300 19.4
Total Probable 11,228 2.77 9.28 0.76 998 3,348 188.4
Total Proven and Probable 17,639 2.77 8.63 0.79 1,573 4,896 305.3
1. The Mineral Reserves disclosed herein have been estimated in accordance with the CIM Definition Standards for Mineral Resourc es and
Mineral Reserves (the “CIM Definition Standards”, adopted by CIM Council on May 10, 2014).
2. Mineral Reserves have been depleted for mining as of May 31, 2023.
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 delivered 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 average 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 6.9% for unplanned ore loss and 7.4% 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 two 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. Sum of individual table values may not equal due to rounding .
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Measured and Indicated Mineral Resources, exclusive of Mineral Reserves, decreased by 1.0 million
tonnes (“Mt”), 120,000 ounces of gold and 16 Mlbs. of copper relative to the 2022 Mineral Resource
estimate. The decrease was largely a result of conversion to Mineral Reserves, partially offset by new
extensions to Mineral Resources achieved from in-mine drilling as well as a review of estimation
parameters during the update.
The Mineral Resource estimate is shown below and is effective as at May 31, 2023:
Chelopech Mineral Resource Estimate, exclusive of Mineral Reserves
(As at May 31, 2023)
Classification Tonnes Gold Silver Copper
(Mt) Grade (g/t) Moz. Grade (g/t) Moz. Grade (%) Mlbs.
Measured 8.1 2.49 0.649 8.76 2.283 0.85 152
Indicated 7.3 2.28 0.537 10.14 2.387 0.70 113
Total
Measured &
Indicated
15.4 2.39 1.185 9.41 4.669 0.78 265
Inferred 4.3 2.00 0.274 8.90 1.219 0.71 67
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 $5/t.
7. All blocks include a complex NSR (Net Smelter Return) formula. The NSR formula utilises long term metal price, metallurgical recoveries,
payability terms. Treatment charges, refining charges, penalty charges, concentrate transport costs, and royalties. For clarity of understanding
of value, a simplified formula is presented here for the Measured and Indicated Resource where NSR US$/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. Annual
throughput rates have been optimized over the LOM, taking into account recent development rates as
mining extends into areas of the mine located further from existing infrastructure , as well as the grade
profile to maximize value.
Between 2024 and 2032, the updated LOM plan adds approximately 128,000 ounces of additional gold
production and 9 Mlbs of copper, with the average LOM gold and copper grades increasing by 5% and
3%, respectively, relative to the previous LOM 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 30, 2023.
The improved average grade is expected to be achieved by mining the crown pillars from Blocks 103
and 151 from 2025 onwards. During this period, gold recoveries increased by 5% relative to the previous
mine plan as a result of an improved ore blend over the LOM and updated recovery regression models
based on recent plant performance. This is partially offset by a reduction to the mining rate in order to
maintain development rates at 7,500 metres per annum and to optimize sustaining capital required . In
2026, the mining rate is planned to be reduced to 2 million tonnes per annum (“Mtpa”) and to 1.8 Mtpa
from 2027 onwards.
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Current Life of Mine Plan
Unit 2024 2025 2026 2027 2028 2029 2030 2031 2032 Total / Average
Total Ore Processed Mt 2.2 2.2 2.0 1.8 1.8 1.8 1.8 1.8 0.8 16.2
Grade
Au g/t 2.90 2.92 2.92 3.07 2.56 2.75 2.54 2.54 2.02 2.75
Cu % 0.77 0.85 0.93 0.77 0.76 0.81 0.69 0.71 0.74 0.79
Recoveries
Copper Concentrate
Au % 54.3 58.3 53.7 54.1 57.1 62.0 61.3 56.2 56.1 56.9
Cu % 83.7 84.8 83.1 83.1 84.3 85.8 85.6 84.8 85.0 84.4
Pyrite concentrate
Au % 25.8 24.6 24.7 27.9 24.1 21.7 23.3 27.1 22.5 24.9
Production
Total Au K oz. 164 172 148 146 121 134 125 123 38 1,170
Total Cu1 Mlbs. 31 35 34 26 26 28 23 24 10 238
Note: Totals in the table above do not include 2023 production and therefore do not add to the Mineral Reserve estimate, which
reflects from May 2023 onward.
1. Total copper production reflects copper recovered from copper concentrate only. Copper recovered from pyrite concentrate is
not payable.
Previous Life of Mine Plan
Unit 2024 2025 2026 2027 2028 2029 2030 2031 Total / Average
Total Ore Processed Mt 2.2 2.2 2.2 2.2 2.2 2.2 2.2 0.6 16.0
Grade
Au g/t 2.93 2.99 2.76 2.52 2.27 2.89 2.16 1.91 2.62
Cu % 0.72 0.80 0.69 0.84 0.75 0.82 0.74 0.75 0.77
Recoveries
Copper Concentrate
Au % 56.2 55.6 54.4 41.5 55.5 49.5 52.3 48.2 52.1
Cu % 83.4 83.6 85.3 84.2 86.0 84.2 86.6 78.2 84.5
Pyrite concentrate
Au % 24.2 24.4 24.8 25.8 25.8 24.7 26.1 24.8 25.0
Production
Total Au K oz. 167 169 155 120 131 152 120 28 1,041
Total Cu1 Mlbs. 29 32 29 34 32 33 31 8 229
1. Total copper production reflects copper recovered from copper concentrate only. Copper recovered from pyrite concentrate is
not payable.
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Several Optimization Activities Planned for 2024
DPM has several initiatives underway aimed at further optimizing Chelopech’s estimated Mineral
Reserves and Resources, and the life of mine plan, including:
• Recontouring the block model at a lower gold equivalent cut-off grade to align with the latest NSR
cut-off value assumptions, providing further potential to convert Mineral Resource into Mineral
Reserves;
• Enhancing development rates to improve productivity as the mine plan progresses into areas in the
mine located further from infrastructure; and
• Evaluating ore sorting technologies to unlock orebodies currently below existing NSR cut-off values
and minimize ore dilution from structurally controlled orebodies.
Three-Year Outlook
The updated LOM plan 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 period ended September 30, 2023, which is available on the Company’s website
at www.dundeeprecious.com and on SEDAR + at www.sedarplus.ca, 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 three and nine
months ended September 30, 2023, issued on November 7, 2023, available on the Company’s website
at www.dundeeprecious.com and on SEDAR+ at www.sedarplus.ca.
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Further extending mine life through additional in-mine and brownfield exploration
DPM continues to focus on extending Chelopech’s mine life through its successful in-mine exploration
program and an aggressive brownfield exploration program. Priority initiatives include:
• In-mine drilling for Mineral Resource development;
• Infill drilling at the Sharlo Dere prospect within the mine concession to support a Mineral
Resource estimate;
• Converting the Sveta Petka exploration licence to a Commercial Discovery, after which DPM
intends to apply for concession rights in 2024 for the area, which is now designated as
Chelopech North; and
• Completion of an intensive drilling program at the Brevene exploration licence and application
for a Geological Discovery.
In-mine exploration: DPM continues to advance in -mine exploration activities focu sed on extending
Chelopech’s mine life. Priority targets within the Company’s near-term plans include:
• The Target North zone , which is located on the northern flank of the Chelopech mine concession
and is manife sted as an isolated, structurally and lithologically controlled intervals of high -
sulphidation type of mineralization. Several extensional drilling programs are planned for the target,
including testing the northern area of Block 19 for high -grade structurally controlled orebodies
between levels 450 to 500, and drilling to the west of Blo ck 147 to explore for similar bodies at a
depth of levels 200 to 500.
• Extensional drilling south-east from Block 700 is planned to better assess the economic significance
of the Quartz -Barite-Gold-Sulphide (QBGS) zone. This program is a continuation of previous
successful drilling campaigns and will focus on identifying an extension of the mineralized system
to the south-east and at depth.
Sharlo Dere: At the Sharlo Dere prospect, which is located approximately 500 metres northeast of the
eastern-most orebodies of the Chelopech mine and approximately 400 metres from current underground
infrastructure, DPM completed 8,407 metres of infill drilling at a 50-metre by 50 -metre spacing which
was designed to evaluate the continuity of the mineralized zones. The prospect comprises the main
Sharlo Dere zone (SD), as well as the lateral extensions termed the Sharlo Dere East (SDE) and the
Sharlo Dere West-Target 11 zones (SDW).
Results from recent drilling highlight the prospect’s potential for copper-gold mineralization along the
northeastern flank of the mine concession as a continuation of the Chelopech high-sulphidation system
(see Figure 2 and Appendix table 1).
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Recent (2022 until present) significant intercepts from the Sharlo Dere prospects include:
• EX_SD_40 – 11 metres at 3.07 g/t AuEq, 1.85 g/t Au and 0.73% Cu from 303 metres depth and 6
metres at 4.18 g/t AuEq, 3.56 g/t Au and 0.37 % Cu from 327 metres depth
• EX_SD_51 – 14 metres at 3.76 g/t AuEq, 2.59 g/t Au and 0.70% Cu from 250 metres depth
• EX_SD_53 – 8 metres at 14.15 g/t AuEq, 9.34 g/t Au and 2.87% Cu from 610 metres depth
• EX_SDW_02 – 14 metres at 3.07 g/t AuEq, 1.61 g/t Au and 0.87% Cu from 573 metres depth
• EX_SD_51 – 14 metres at 3.76 g/t AuEq, 2.59 g/t Au and 0.70% Cu from 250 metres depth
• EXT11_555_03 – 6.2 metres at 7.54 g/t AuEq, 6.70 g/t Au and 0.50% Cu from 165 metres depth
• EXT11_555_04 – 37.5 metres at 7.34 g/t AuEq, 5.69 g/t Au and 0.98% Cu from 184.5 metres depth
(including 27 metres at 9.70 g/t AuEq, 7.58 g/t Au and 1.26% Cu from 193.5 metres)
See Appendix Table 1 on pages 14 to 18 for full results from drilling.
The Sharlo Dere, Sharlo Dere East and Sharlo Dere West prospects share the same geological
environment and show many similarities with the high -sulphidation style Chelopech copper -gold
mineralization. Mineralization is constrained by east -northeast and west -northwest striking deep
structural feeders and highly permeable sub -vertical phreatomagmatic breccia contacts within the
sedimentary Turonian Unit, that was intruded by a multi-phase dioritic intrusive complex. The distal and
upper part of the phreatomagmatic breccia pipes are represented by strata -bound hydro -magmatic
injections and surge flow deposits accompanied with sub -horizontal mineralized lenses/layers, which
were subsequently tilted according to the synformal basin architecture. A particular characteristic of the
Sharlo Dere area is the better preservation of the shallow syn-sedimentary exhalative sulphide
mineralization and subsequent reworked mineralized clasts in syn- to post-mineral debris flow deposits
(see Figure 3).
DPM has completed its initial phase of infill drilling with the objective of including a Mineral Resource
estimate for Sharlo Dere within the next Mineral Resource estimate update for the Chelopech mine, with
the longer-term goal to potentially convert these Mineral Resources into Mineral Reserves.
Sveta Petka: 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, to allow the Company to apply for concession rights in 2024 for the area which is
now designated as Chelopech North.
Brevene: On the Brevene exploration licence surround ing the Chelopech mine concession, target
delineation and scout drill testing has been completed. The evaluation of Mineral Resource potential is
ongoing, and the data collected will be used to support an application for a Geological Discovery, which
is expected to be submitted before the end of the year.
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Figure 1: Plan view of the Chelopech mining concession, Chelopech North Commercial Discovery and
Brevene exploration licences, indicating target zones for DPM’s 2024 in-mine and brownfield exploration
program as well as the section line (A-A’) shown in Figure 2.