Updated Mineral Resource And Mineral Reserve Estimate For Ada Tepe Gold Mine
TORONTO - Dundee Precious Metals Inc. reported an updated Mineral Resource and Mineral Reserve Estimate and improved life of mine (LOM) plan for its Ada Tepe gold mine in Bulgaria.
Highlights: Total Proven and Probable Mineral Reserves of 4.26 million tonnes (“Mt”) at 4.8 grams per tonne (“g/t”) of gold and 3.0 g/t of silver for 658 thousand ounces of gold and 414 thousand ounces (“K oz.”) of silver, respectively; Optimized LOM plan with a higher grade and recovered gold ounce profile, compared to the original 2014 LOM plan; Improved estimate based on detailed reconciliation data; and Supports previously issued 2020 guidance and three-year outlook for Ada Tepe.
“We are very pleased with the updated Mineral Reserves and the optimized mine plan for Ada Tepe,” said David Rae, President and CEO. “We are proud of our operating team at Ada Tepe, which has continued to exceed our expectations since the start of operations last year. The optimized mine plan further supports Ada Tepe’s potential to drive strong operating results within our portfolio.”
The Mineral Resource and Mineral Reserve update for the Ada Tepe mine was initiated to account for detailed reconciliation studies conducted since the start-up of operations, grade control drilling, and mining depletion to July 31, 2020. A technical report for the Ada Tepe mine, prepared in accordance with NI 43-101, will be filed under the Company’s profile on SEDAR. The previous Mineral Resource estimate, effective at December 31, 2013, employed a multiple indicator kriging (“MIK”) approach for the Upper Zone Resource domain.
The current estimate was undertaken using mineralization volumes created using a single Indicator Kriged contour (“IK”), followed by Ordinary Kriged (“OK”) block estimates. This approach, which uses information gathered during mining to align with operational grade control estimation procedures, is more suitable for detailed mine planning and reconciliation studies. The new model has resulted in a higher grade Mineral Resource inventory for the Upper Zone relative to the previous Mineral Resource Estimate, with lower tonnage and more gold ounces (not accounting for depletion). This change in approach and the resultant grade-tonnage relationship is well-supported by detailed reconciliation studies that have been conducted from the start of operations.
The updated Mineral Resource estimate also includes approximately 91,000 meters of close-spaced grade control drilling within the LOM pit design and detailed in-pit mapping, which was used to prepare 3D geologic interpretations. Grade control reverse circulation drilling, completed on a 5 meter by 5 meter spacing, has identified additional mineralization within the Upper Zone, which has been captured within the updated models.
Mineral Reserves were constrained within a pit design, based on a selected pit scenario derived from a Whittle pit optimization study. Relative to the previous 2014 Reserve pit design, the strip ratio increased slightly due to the changes in the estimation approach. However, the new design incorporates additional geotechnical recommendations, which has offset much of the additional waste.
Based on the final pit design, a strategic mine planning study was conducted to optimize net present value of mine cash flows, balanced against operational constraints that include mine production, process plant throughput rates, stockpiling capacity and mine life. The chosen optimal scenario maintains production until 2026 and assumes a plant throughput of approximately 750 thousand tonnes per annum. This scenario generated an improved and optimized recovered gold ounce profile when compared with the previous 2014 LOM plan.license
On the Ada Tepe mine concession, approximately 8,000 meters of drilling are planned at the Surnak prospect and two other satellite deposits for the fourth quarter of 2020, with the goal of establishing Mineral Resources and extending Ada Tepe’s mine life. Additional exploration activities in 2020 have focused on target delineation and resource definition drilling of epithermal veins on the Chiirite license, located approximately 25 kilometers north-east of Ada Tepe, with approximately 6,000 meters of drilling completed this year.
For 2021, DPM is planning approximately 32,000 meters of drilling at Ada Tepe, with a focus on delineation of additional resources within the mine license and advancing other prospective targets on regional licences.