Dundee Precious Metals (DPM) announces positive pre-feasibility study and encouraging new exploration results for the Timok Gold Project in Serbia.
Positive pre-feasibility study results indicate an internal rate of return of 21% based on a US$1,500 per ounce gold price. The project should also recover 547,000 ounces of gold over an 8-year mine life, with gold production estimated to average 70,000 ounces per year.
The mine's average all-in sustaining cost is approximately US$693 per ounce of gold, while the company estimates its initial capital cost to be US$211 million.
The study assumes a 17-month construction and commissioning period, with start-up of production targeted for the first quarter of 2026.
Based on the results of the pre-feasibility study, the company has received board approval to proceed with a feasibility study which will focus on the oxide portion of the deposit.
This feasibility study is expected to be completed by the first quarter of 2022. In its detailed 2021 guidance, the company included a range of US$11 to US$13 million for growth capital expenditures, and US$2 to US$3 million for evaluation expenditures to reflect the costs of the feasibility study, other studies and related drilling.
Timok contains an additional 1.3 million ounces in indicated mineral resources contained within 32.3 million tonnes at 1.27 grams per tonne.
According to David Rae, President and Chief Executive Officer,
"With additional optimization opportunities to enhance the project and very encouraging exploration results, we believe Timok represents an attractive opportunity to provide organic growth in a region where we have had a presence for many years."
Approximately 14,000 metres of drilling is planned for 2021, including exploration and infill drilling in support of the feasibility study.
Planning for the project will be highly focused on ensuring responsible environmental management, social development, and the operation and closure of Timok in accordance with industry best practices.
Dundee Precious Metals is a Canadian-based international gold mining company with operations and projects located in Bulgaria, Namibia and Serbia.
Dundee Precious Metals (DPM) is down 0.46 percent and is currently trading at C$8.61 per share as of 9:34 am EST.