TORONTO, ONTARIO–(Marketwired – Nov. 19, 2015) – Dundee Precious Metals Inc. (TSX:DPM) (TSX:DPM.WT.A) (“DPM” or “the Company”) announces a further positive development in the Krumovgrad gold project (the “Project”) permitting process.
On July 7, 2014, the Krumovgrad Municipal Council (“Council”) approved the terms of reference submitted by the Company for preparation of a detailed development plan (“DDP”) for the land the Project is sited on and voted to allow DPM to proceed with preparation of the DDP. In August 2014, the draft of the DDP was submitted to the Municipality for public announcement and to the relevant authorities for coordination and preliminary approval. Today, DPM is pleased to report that the final DDP has been approved and announced by the Krumovgrad Mayor. With the appeal process having expired on November 19th 2015, the DDP is now fully in force.
“This is a critical step in the construction permitting process as it is a prerequisite to allowing construction of the Project to proceed” said Rick Howes, President and CEO.
With the final DDP in force, the next step in the approvals process is for the Executive Forestry Agency to approve the final re-designation of the land from forestry land to industrial land, which will then allow the Company to initiate the land purchase process.
The Company is targeting land re-designation and purchase in the first half of 2016, the issuing of a construction permit by the end of the second quarter of 2016, and commencement of construction in the second half of 2016.
About the Krumovgrad Gold Project
The proposed mine site is located approximately three kilometres south of the town of Krumovgrad in southeastern Bulgaria. The project plan contemplates the construction of an open pit mining operation comprised of a process plant which will employ conventional crushing, grinding and flotation processing for gold extraction and the disposal of thickened tailings together the mine rock waste in an integrated mine waste facility. The plant is designed to treat up to 840,000 tonnes of ore containing 85,700 ounces of gold per annum over an eight year mine life. The capital cost to complete the construction of the mine and associated facilities, excluding sunk costs, is currently estimated at $164.1 million (stated in 2013 U.S. dollars). An update to the capital cost estimate was initiated in early 2015, and is planned to be completed by the end of the first quarter of 2016.
About Dundee Precious Metals
Dundee Precious Metals Inc. 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 the Krumovgrad project and interests held through its 50.1% owned subsidiary, Avala Resources Ltd., and its 12.0% interest in Sabina Gold & Silver Corp.
Cautionary Note Regarding Forward Looking Statements
This press 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, copper, zinc and silver, the estimation of mineral reserves and resources, the realization of such mineral estimates, the timing and amount of estimated future production and output, life of mine, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, success of permitting activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, the potential or anticipated outcome of title disputes or claims 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 that 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, uncertainties inherent with conducting business in foreign jurisdictions where corruption, civil unrest, political instability and uncertainties with the rule of law may impact the Company’s activities; fluctuations in metal prices; unanticipated title disputes; claims or litigation; limitation on insurance coverage; as well as those risk factors discussed or referred to in the Company’s MD&A under the heading “Risks and Uncertainties” and under the heading “Cautionary Note Regarding Forward-Looking Statements” which include further details on material assumptions used to develop such forward-looking statements and material risk factors that could cause actual results to differ materially from forward-looking statements, and other documents (including without limitation the Company’s 2014 AIF) filed from time to time with the securities regulatory authorities in all provinces and territories of Canada and available on SEDAR at www.sedar.com. 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.
President and Chief Executive Officer
Dundee Precious Metals Inc.
Senior Vice President, Governance, and Corporate Secretary