SYS-CON MEDIA Authors: Kevin Benedict, Gilad Parann-Nissany

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Dundee Precious Metals Extends Mine Life at Chelopech With Updated Mineral Reserve and Resource Estimate

TORONTO, ONTARIO -- (Marketwired) -- 03/31/14 -- (All amounts have been expressed in US Dollars except where otherwise indicated)

Dundee Precious Metals Inc. (TSX: DPM) (TSX: DPM.WT.A) ("DPM" or "the Company") announces the results of the updated Mineral Reserve and Mineral Resource for its Chelopech mine in Bulgaria.

Highlights:


--  Life of mine ("LOM") extended from 2023 to 2025
--  Measured tonnes increased 13%, or 2.2 million tonnes ("Mt"), from
    September 2011 estimate
--  Pyrite recoveries incorporated into Mineral Reserve estimation
--  LOM assumptions maintain gold price of $1,250 per ounce
--  Pyrite recovery circuit commissioned in Q1 with an annual gold capacity
    in pyrite production of up to 80,000 oz of gold; concentrate contracts
    in 2014 for 240,000 tonnes and 40,000 oz contained gold
--  First shipment of pyrite concentrate to Xiangguang Copper Co. completed
    in March
--  18 months of stable operation at the 2 million tonnes per year rate,
    combined with the newly introduced pyrite recovery circuit, allows
    incremental tonnage, recovery and profitability optimization steps in
    keeping with DPM's continuous improvement core value

"The addition of a further two years to the LOM of our flagship asset is an encouraging outcome from our reserve and resource update, which now incorporates pyrite recovery as a result of our newly constructed capability to treat all pyrite feeds rather than discard pyrites to tailings," stated Rick Howes, President and CEO. "We have recently completed our first shipment of pyrite concentrate and expect to be able to meet our 2014 contractual obligations."

The 2005 metallurgical testwork characterized the hardness and flotation parameters of each mineralized block, and confirmed that the process flowsheet currently in operation was optimum for the production of copper/gold concentrates. An additional test program was completed in 2012, covering current and future ores, which confirmed the current flowsheet performance for the copper circuit, and developed the optimum conditions for the future recovery of pyrite from the current process plant ore feed.

The expanded ore treatment process was completed in early 2012. Further plant upgrades have been completed since the original expansion, including the replacement circuit for the second and third cleaners of the copper circuit in mid-2013, and a new pyrite circuit that commenced operation in the first quarter of 2014.

Mineral Reserves have been estimated as at December 31, 2013, and are based on, and inclusive of, Mineral Resources, and include approximately 71,000 tonnes of broken stocks and stockpiles. Mineral Reserves are reported using a gold equivalent (Au + Cu(i)2.06) cut-off of 3 g/t and a Net Smelter Return ("NSR") methodology.


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MINERAL RESERVES                   GOLD           SILVER          COPPER
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                        Tons   Grade      Oz   Grade      Oz   Grade  Pounds
                           M     g/t       M     g/t       M       %       M
----------------------------------------------------------------------------
Proven                  10.6    3.30   1.128    9.93   3.395    1.21     284
----------------------------------------------------------------------------
Probable                13.3    3.24   1.384    5.33   2.279    0.82     240
----------------------------------------------------------------------------
Proven and Probable     23.9    3.26   2.512    7.37   5.674    0.99     524
----------------------------------------------------------------------------

Mineral Reserves have been estimated by including a number of technical, economic and other factors. A change to any of the inputs would therefore have some effect on the overall results. Concerning mining and metallurgical factors, it is the belief of CSA Global (UK) Ltd. ("CSA") that sufficient work has been done by DPM to ensure that these are not likely to have any significant or material effect on Mineral Reserves. The quality of the ore reserves means that a high level of mine planning can be instituted and complied with.

Mineral Resources have been classified as Measured, Indicated and Inferred, following the guidelines specified by the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") and adopted for technical reports complying with National Instrument 43-101 ("NI 43-101"). Mineral Resources have been estimated as at December 31, 2013, and reported using a gold equivalent (Au + Cu(i)2.06) cut-off of 3 g/t and a breakeven NSR methodology.


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MINERAL RESOURCES                  GOLD           SILVER          COPPER
----------------------------------------------------------------------------
                        Tons   Grade      Oz   Grade      Oz   Grade  Pounds
                           M     g/t       M     g/t       M       %       M
----------------------------------------------------------------------------
Measured                18.6    4.07   2.431    9.72   5.808    1.35     553
----------------------------------------------------------------------------
Indicated               10.2    3.96   1.293    8.39   2.742    1.06     237
----------------------------------------------------------------------------
Measured and
 Indicated              28.7    4.03   3.724    9.25   8.550    1.25     791
----------------------------------------------------------------------------
Inferred                 8.2    2.71   0.712   11.22   2.952    0.92     166
----------------------------------------------------------------------------

Compared to the September 2011 Mineral Resources estimate, for combined Measured and Indicated material, the updated estimate for Measured tonnes has increased by 13% (or 2.2Mt). Inferred material has 15% fewer tonnes with a 12% increase in copper, 7% increase in gold and 11% increase in silver. The primary reason for these changes are tonnage losses due to production of 2.5 Mt of ore treated during the period October 1, 2012 to December 31, 2013, offset by increases in resources from development drilling success.

It is CSA's opinion that the Mineral Resources estimate has a very low to negligible risk of being affected by factors such as geological understanding, data mismanagement, poor estimation methodology or poor classification strategy. The deposit geology is well understood, has been appropriately modeled in 3D and has adequate sampling data to support the grade and tonnage estimates. Recent reconciliation with production has verified the quality of the Mineral Resources estimate.

Mineral Resources and Reserves are based on the 2014 ore production schedule, operating costs through to 2013, with current projected metal prices of $1,250 per troy ounce price for gold, $2.75 per pound for copper, and $23 per troy ounce for silver.

Technical Information

The Mineral Resource and Mineral Reserve estimates and other scientific and technical information contained in this news release was 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 has been reviewed and approved by, as it relates to Mineral Resources, Malcolm Titley BSc, MAIG, Director and Principal Geologist, of CSA, and Julian Bennett, BSc ARSM FIMMM CEng, Mining Consultant, as it relates to Mineral Reserves. Both Malcolm Titley and Julian Bennett are independent Qualified Persons ("QP"), as defined under NI 43-101. The NI 43-101 technical report entitled "NI 43-101 Technical Report, Mineral Resource and Mineral Reserve Update, Chelopech Project, Chelopech, Bulgaria" dated March 21, 2014, in respect of the Mineral Resource and Mineral Reserves estimates disclosed herein (the "Technical Report"), is being filed today on SEDAR at www.sedar.com. Simon Meik, Vice President, Processing, and Edgar Urbaez, Corporate Director, Technical Services, both of DPM, who are QPs and not independent of the Company, have also reviewed and approved the contents of this release.

The Mineral Resource and Mineral Reserve estimates contained herein may be subject to legal, political, environmental or other risks that could materially affect the potential development of such Mineral Resources. See the Technical Report for more information with respect to the key assumptions, parameters, methods and risks of determination associated with the foregoing Mineral Resource estimates.

Cautionary note to U.S. Investors concerning estimates of Mineral Resources. These estimates have been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of U.S. securities laws. The terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are defined in NI 43-101 and recognized by Canadian securities laws but are not defined terms under the U.S. Securities and Exchange Commission ("SEC") Guide 7 ("SEC Guide 7") or recognized under U.S. securities laws. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be upgraded to mineral reserves. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever by upgraded to a higher category. Under Canadian securities laws, estimates of "inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies. U.S. investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Accordingly, these mineral resource estimates and related information may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the U.S. federal securities laws and the rules and regulations thereunder, including SEC Guide 7.

FORWARD LOOKING STATEMENTS

This news release contains "forward-looking statements" that involve a number of risks and uncertainties. Forward-looking statements include, but are not limited to, statements with respect to the future price of gold and silver, the estimation of mineral reserves and resources, the realization of mineral estimates, the timing and amount of estimated future production and output, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements are based on the opinions and estimates of management 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. Such factors include, among others: the actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold, copper, zinc and

silver; 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 mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, fluctuations in metal prices, as well as those risk factors discussed or referred to in Management's Discussion and Analysis under the heading "Risks and Uncertainties" and other documents filed from time to time with the securities regulatory authorities in all provinces and territories of Canada and available at www.sedar.com. 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. Unless required by securities laws, the Company undertakes no obligation to update forward-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.

DPM is a Canadian based, international gold mining company engaged in the acquisition, exploration, development, mining and processing of precious metals. The Company's principal operating assets include the Chelopech operation, which produces a copper concentrate containing gold and silver, located east of Sofia, Bulgaria; the Kapan operation, which produces a copper concentrate and a zinc concentrate both containing gold and silver, located in southern Armenia; and the Tsumeb smelter, a concentrate processing facility located in Namibia. DPM also holds interests in a number of developing gold properties located in Bulgaria, Serbia, and northern Canada, including interests held through its 53.1% owned subsidiary, Avala Resources Ltd., its 45.5% interest in Dunav Resources Ltd. and its 12.1% interest in Sabina Gold & Silver Corp.

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