Dundee Precious Metals (DPM) has given some interesting updates on its 2018 outlook across its key projects in its full year 2017 results. At Chelopech in Bulgaria, gold contained in concentrate produced is expected to be between 165,000 and 195,000 oz in 2018, slightly below its record production in 2017. “This is largely due to higher than anticipated grades in 2017, and grades returning to expected life of mine levels in 2018. Gold production in the first half of 2018 is expected to be higher than the second half based on the existing mine plans at Chelopech.”
DPM is advancing initiatives at Chelopech to further increase stope intensity and cycle time to optimise production and costs. Mine planning will see a significant change in 2018 as MineRP software is implemented and optimised. DPM is also continuing its process plant optimisation program designed to improve processes, consumables consumption and metal recoveries. Sustaining capital expenditures for Chelopech are expected to be higher than in recent years reflecting approximately $9 million for the elevation of its tailings management facility. This work is expected to be completed in 2019 at a total cost of approximately $12 million.
At Tsumeb in Namibia, complex concentrate smelted in 2018 is expected to be between 220,000 and 250,000 t, an increase of up to 14% over 2017 production levels as the company continues to optimise and ramp-up the facility. A key focus in 2018 will be on achieving increased availability of the oxygen and power plants and a decrease in secondary levels. Volumes of complex concentrate smelted in the first half of 2018 are expected to be lower than the second half due to the timing of the annual maintenance shutdown, which is currently expected to take place during the first half of 2018. Tsumeb is also implementing several initiatives targeting unit cost reductions and productivity improvements. “The company continues to advance its permitting and commercial discussions in connection with the installation of a rotary holding furnace, which would increase capacity up to 370,000 t. The timing of this expansion is subject to timing of anticipated new complex concentrate coming on the market and adequate commercial arrangements being in place to support this expansion.”
Key milestones at the Krumovgrad gold project in Bulgaria in 2018 include the completion of the IMWF earthworks, mechanical, structural, electrical and instrumentation installation and pre-stripping of the mine. “Cold and hot commissioning are on track for the second and third quarters, respectively, followed by first concentrate production and commencement of the ramp-up to full design capacity in the fourth quarter. In addition to the above noted milestones, DPM is focused on operational readiness and deploying its shared services model to maximise the synergies with Chelopech. Fourth quarter gold production of approximately 3,000 oz is expected to occur prior to declaring commercial production, anticipated to occur on or about January 1, 2019.”
Following the discovery of the Korkan West deposit in 2017 in Serbia, DPM will continue to advance exploration of this area in 2018 with the goal of adding more ounces to the existing Timok gold resource. DPM is also conducting metallurgical testing to determine if an improved flowsheet can be developed. If successful, this is expected to lead to an internal scoping study in 2018 followed by a revised preliminary economic assessment.
DPM does not anticipate a material contribution to earnings from MineRP in 2018 given that it is still in a ramp-up phase. DPM also does not anticipate providing additional funding beyond the $2 million remaining undrawn from the $5 million working capital facility provided following the acquisition.
