Dundee Precious Metals Announces Mine Life Extension and Update to Mineral Resource and Mineral Reserve Estimates for the Chelopech Mine – Yahoo…

Figure 1

Key target areas for Chelopech in-mine extensional and exploration drilling in 2021.

Key target areas for Chelopech brownfield exploration activities in 2021.

TORONTO, March 30, 2021 (GLOBE NEWSWIRE) -- Dundee Precious Metals Inc. (TSX: DPM) (DPM or the Company) is pleased to announce a mine life extension and updated Mineral Resource and Mineral Reserve estimate for the Chelopech mine in Bulgaria. The Mineral Resource and Mineral Reserve estimates for DPMs Ada Tepe mine in Bulgaria and Timok gold project in Serbia remain unchanged from the estimates previously reported in the news releases dated October 16, 2020 and February 23, 2021, respectively.

Highlights

10% net addition to Mineral Reserves: Successfully added 3.9 million tonnes (Mt) to Mineral Reserves, which more than offset 2020 production depletion of 2.2 Mt for a net addition of 1.7 Mt. Relative to the previous Mineral Reserve estimate, this represents an increase of 10% in tonnage and an increase in metal content of 5% for gold, 13% for silver and 3% for copper;

Mine life extended to 2029: Proven and Probable Mineral Reserves of 1.7 million ounces (Moz.) of gold and 344.4 million pounds (Mlbs.) of copper supports an optimized mine life that extends to 2029 as well as the Companys previously issued three-year outlook for Chelopech;

22% increase to Measured and Indicated Mineral Resources: Measured and Indicated Mineral Resources, exclusive of Mineral Reserves, increased 22%, representing a 3.2 Mt net increase in tonnage and an increase in metal content of 12% for gold and 6% for copper, further adding to the potential to extend mine life, if such Mineral Resources are converted to Mineral Reserves;

Additional potential with in-mine and brownfield exploration: Significant drilling program planned for 2021, including 44,000 metres of in-mine drilling and 38,000 metres of drilling on prospective brownfield targets.

We continued our strong track record of extending mine life at our Chelopech mine in 2020, with net additions to our Mineral Reserves and Mineral Resources compared with 2019 estimates, said David Rae, President and Chief Executive Officer of Dundee Precious Metals. With Mineral Reserves that now extend to 2029, an updated Mineral Resource base and increased in-mine and brownfield exploration drilling, we believe there is strong potential for this trend to continue at Chelopech.

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Updated Mineral Resource and Mineral Reserve Estimate

The updated Mineral Resource and Mineral Reserve estimate for the Chelopech mine reflects the conversion of Mineral Resources to Mineral Reserves, as well as a strategic mine plan optimization process that was completed in Q3 2020. The strategic optimization process included an analysis of multiple mine schedules at various cut-off values (CoV), with the primary objectives focused on optimizing net present value and the life of mine (LOM). Of the overall increase to Mineral Reserves, approximately 20 to 25% was added as a result of the conversion of new Mineral Resources generated by in-mine drilling activities, with the balance of the increase resulting from the optimization of the CoV and other design parameters.

Total Proven and Probable Mineral Reserves at Chelopech of 1.7 Moz. of gold and 344.4 Mlbs. of copper support an eight-year mine life that extends to 2029, prior to any further conversions from existing Mineral Resources or additional exploration success.

The Mineral Reserves statement is shown below and is effective as of December 31, 2020.

Chelopech Proven and Probable Mineral Reserve Estimate(As at December 31, 2020)

Classification

Tonnes

Gold

Silver

Copper

(Mt)

Grade (g/t)

K oz.

Grade (g/t)

K oz.

Grade (%)

Mlbs.

Proven

7.8

2.71

681

7.23

1,818

0.84

145.5

Probable

10.8

3.03

1,046

8.09

2,797

0.84

198.9

Total

18.6

2.89

1,727

7.73

4,615

0.84

344.4

Footnotes:

The Mineral Reserves disclosed herein have been estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum CIM Definition Standards for Mineral Resources and Mineral Reserves (CIM, 2014)

Mineral Reserves are based on a profitability indicator that considers, among other things, metal price, metallurgical recoveries, treatment charges and market forecast.

Mineral Reserves are based on a cut-off value of $10 per tonne.

Long-term metal price assumed for the evaluation of Mineral Reserves and Mineral Resources are $1,400 per ounce for gold, $17.50 per ounce for silver, and $2.75 per pound for copper.

Mineral Reserves account for mining dilution and ore loss.

Mineral Reserves reflect depletion for mining as at December 31, 2020.

Measured and Indicated Mineral Resources, exclusive of Mineral Reserves, increased to 17.4 Mt. Approximately 30 to 35% of the increase is attributable to additions of new Mineral Resources through extensional drilling, with the balance resulting from the optimization of CoV assumptions.

The Mineral Resource statement is shown below and is effective as of December 31, 2020.

Chelopech Mineral Resource Estimate, exclusive of Mineral Reserves(As at December 31, 2020)

Classification

Tonnes

Gold

Silver

Copper

(Mt)

Grade (g/t)

K oz.

Grade (g/t)

K oz.

Grade (%)

Mlbs.

Measured

10.9

2.74

956

8.26

2,887

0.88

210

Indicated

6.5

2.44

512

9.45

1,978

0.73

105

Total Measured & Indicated

17.4

2.63

1,467

8.71

4,864

0.82

315

Inferred

1.7

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Dundee Precious Metals Announces Mine Life Extension and Update to Mineral Resource and Mineral Reserve Estimates for the Chelopech Mine - Yahoo...