Dundee Precious Metals Announces Life of Mine Plan with Additional Production and Updated Mineral Resource and Mineral

TORONTO, Jan. 12, 2023 (GLOBE NEWSWIRE) — Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or “the Company”) is pleased to announce an updated Mineral Resource and Mineral Reserve Estimate with additional gold production over the life of mine (“LOM”) for its Ada Tepe gold mine in Bulgaria.

Highlights

• Improved LOM plan, with an estimated increase in recovered gold to concentrate of approximately 66,000 ounces (“K oz.”) and higher average gold grade of 5.2 grams per tonne (“g/t”), compared with 4.6 g/t in the previous 2020 LOM plan.

• Average of approximately 16,500 ounces of additional gold production per year for 2023 through 2026.

• Expected to improve DPM’s previously issued three-year outlook for gold production, which will be updated with the release of the Company’s fourth quarter and year-end 2022 financials on February 16, 2023.

“Since commissioning in 2019, Ada Tepe has continued to outperform our expectations,” said David Rae, President and CEO. “We are confident that Ada Tepe will continue to deliver strong results, supported by this improved life of mine plan.”

Updated Life of Mine Plan

Based on the final pit design, a strategic mine planning study was conducted to optimize net present value of mine cash flows, balanced against other considerations including mine production, process plant throughput rates, stockpiling capacity, and mine life.  

The updated LOM plan maintains production through 2026 and reflects an increase of 66,000 ounces of total gold recovered with a higher LOM gold grade of 5.19 g/t, relative to the same period in the previous 2020 LOM plan. Additionally, it is expected to improve DPM’s previously issued three-year outlook for production, which the Company will update with its fourth quarter and year-end 2022 financial results in February.

The tables below show the current LOM plan, compared to the previous 2020 LOM plan.

Updated Mineral Resource and Mineral Reserves Estimate

To ensure higher confidence geologic modelling for mine planning and scheduling, DPM elected to complete all operational grade control drilling within the remaining LOM pit volume ahead of mining, which was completed in Q1 2022. The updated Mineral Resource and Mineral Reserve estimate for Ada Tepe reflects the results of 290 kilometres of grade control drilling completed since the previous 2020 update. Effectively all of the Mineral Resource estimate has now been converted to the Measured category. This drilling has successfully defined additional mineralization within the northern regions of the deposit, which was previously interpreted as being less extensive, due to the limitations of the wider drilling grid spacings at that time.

The updated Proven and Probable Mineral Reserve comprises of 415,000 contained gold ounces and 250,000 contained silver ounces. Mineral Reserves are estimated based on a Mine Shape Optimizer (“MSO”) diluted block model, used to account for operational mine dilution and expected level of selectivity. The Mineral Reserve statement is shown below and is effective as at December 31, 2022.

Footnotes:

1. Mineral Reserves have been estimated using a gold cut-off of 0.6 g/t for the Upper Zone, and 0.8 g/t for the Wall Zone.
2. Long-term metal prices assumed for the pit optimization were US$1,400/oz. for gold and US$20/oz. for silver. The optimized pit was selected based on a revenue factor of 1.14.
3. Mineral Reserves include mining depletion as of December 31, 2022.
4. Proven ore includes stockpile inventory as of December 31, 2022.

The Upper Zone was modelled using an Indicator Kriging-based approach to define grade shells. Using the Indicator Kriging numeric outputs, a probability threshold was chosen, which was used to constrain volumes within the block model for grade estimation (gold, silver and sulphur) using Ordinary Kriging. The probability threshold was chosen based on benchmarking studies against operational grade control modelling and monthly reconciliation outputs.

Wall Zone and Basement Zone mineralization models were based on sectional interpretation of geological logging data and gold assay data. Grade estimation within these volumes was undertaken using Ordinary Kriging and in-situ dry bulk density was assigned on the basis of oxidation state and lithology.

The block model was classified in accordance with CIM guidelines as Measured, Indicated and Inferred Mineral Resources based on confidence in data, geological and grade continuity, density measurements and estimation quality. Reasonable prospects for eventual economic extraction (“RPEEE”) are supported through a pit optimization constraint applied to Mineral Resources, using a gold price of US$1,600 per ounce. The Mineral Resource statement is shown below and is effective as at December 31, 2022.

Footnote:

1. Figures have been rounded to reflect that this is an estimate.
2. Measured, Indicated and Inferred Mineral Resources have been reported in accordance with National Instrument 43‐101 (“NI 43-101”) and the classification adopted by the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”).
3. Estimates of Measured and Indicated Mineral Resources are reported exclusive of those Mineral Resources modified to produce Mineral Reserves.
4. Mineral Resources may be subject to legal, political, environmental and other risks and uncertainties. See Cautionary Note Regarding Forward-Looking Statements.
5. CSA Global (UK) Ltd. (“CSA Global”) are not aware of any legal, political, environmental or other risk factors that might materially affect the estimate of Mineral Resources.
6. Mineral Resources are based on a gold-cut off grade of 0.6 g/t for the Upper Zone and Overburden and 0.8 g/t for the Wall Zone and Basement mineralization.
7. Mineral Resources are reported above a surface based on a conceptual US$1,600 per ounce gold price pit shell to support assumptions relating to reasonable prospects of eventual economic extraction.  
8. The Mineral Resource is effective as at December 31, 2022.

Exploration

In 2022, exploration activities focused on a resource extension drilling program at Ada Tepe and other satellites in the Khan Krum mine concession area, as well as target delineation campaigns on the Chiirite and Dalbokata Reka exploration licences. Approximately 9,400 metres were drilled over 47 holes during the year.

At Ada Tepe, a dedicated drilling program to test for potential extensions of mineralization to the north and to test for conceptual feeder structures at depth was implemented with 17 holes consisting of 2,686 metres. Results of extensional drilling to the north of the deposit returned a series of narrow intervals of mineralization above the mine cut-off, that may represent incremental extensions of Upper Zone vein swarms. The Company is assessing if follow-up drilling is required in this area.

On the Chiirite exploration licence, the drilling program at the Golden Creek and Cernichino prospects was completed with a total of 3,435 metres over 11 holes during the year. From this program, encouraging results were received from drill hole ZDDD004 on the Cernichino target, which returned 10 metres at 1.98 g/t and 1.21 g/t Ag from 170 metres downhole.¹ This intercept will be followed up in the 2023 exploration drill program, which will also test for structurally controlled, granite hosted mineralization and skarn hosted mineralization targets at Kara-Tepe.

During 2023, DPM will be employing a focused targeting approach to evaluate undercover targets within the Krumovgrad camp….