Dundee Precious extends Chelopech mine life by one year

Nearly 20 years after buying the Chelopech gold-copper mine in Bulgaria, Dundee Precious Metals (TSX: DPM) announced an updated resource estimate that stretches the mine life slightly to 2032 from 2031.

“The mine life extension to 2032, coupled with the slight increases in gold and copper grades, slightly bolsters the asset’s outlook,” Raj Ray, a mining analyst at BMO Capital Markets, said in a note to clients. In response, the bank has adjusted its model to account for these enhancements and continues to see the potential for additional extensions to the orebody. “Our ‘outperform’ rating and a target price of $14 per share remain unchanged.”

The mine now holds 17.7 million tonnes of proven and probable reserves, grading 2.77 grams gold per tonne and 0.79% copper for 1.6 million oz. gold and 305.3 million lb. copper. The company reports the measured and indicated resources stand at 15.4 million tonnes grading 2.39 grams for 1.2 million oz. of metal and a copper grade of 0.78% for 265 million lb. of metal. Specifically, the indicated resource comprises 4.3 million tonnes at 2 grams gold per tonne and a copper grade at 0.71%.

Dundee Precious expects the Chelopech mine to recover 128,000 oz. gold and 9 million lb. copper yearly between 2024 and 2032, reflecting a 5% increase in gold grade and a 3% increase in copper grade from previous estimates.

In 2022, the Chelopech mine’s output reached 179,100 oz. gold and 30.8 million lb. copper from processing 2.1 million tonnes of ore, underlining the operation’s strong performance.

“We take pride in our consistent success in extending the mine’s life at Chelopech,” Dundee president and CEO, David Rae, said in a press release. During the company’s involvement at Chelopech, it has “transformed it into a model of modern efficiency, built a strong local team, and forged solid ties with our community stakeholders,” Rae said.