DPM adds 20% more gold-silver to extend Bulgaria mine

DPM Metals (TSX: DPM) says a resource update for its Chelopech gold-copper mine in Bulgaria has added four years to the property’s operational life.Chelopech is now projected to have a mine life of 10 years, up from six previously, DPM said late Thursday in a statement. Measured and indicated resources jumped 20% to 15.3 million tonnes, with total reserves now pegged at 1.6 million oz. gold, 6.23 million oz. silver and 308 million lb. copper.The resource update “underscores DPM’s track record of mine life extensions at Chelopech with ongoing upside potential” from several near-mine areas, Scotia Capital mining analyst Eric Winmill said Friday in a note.Chelopech now holds 15.3 million measured and indicated tonnes grading 2.18 grams per tonne gold, 9.19 grams silver and 0.64% copper, DPM said. This translates into contained metal of 1.07 million oz. gold, 4.52 million oz. silver and 216 million lb. copper.It also has 9.1 million inferred tonnes grading 1.96 grams gold, 9.38 grams silver and 0.57% copper for contained metal of 573,000 oz. gold, 2.74 million oz. silver and 114 million lb. copper. All figures were accurate as of May 31.Reserve replacementThe updated reserve is expected to sustain annual production of about 160,000 gold-equivalent ounces.It incorporates the Sharlo Dere prospect, updated model and design parameters as well as updated cut-off calculation assumptions. Reserve changes were primarily driven by higher metal price assumptions, with DPM now factoring in $2,300 per oz. gold instead of $1,500 previously.The updated reserve “is a strong indication of Chelopech’s track record of replacing mineral reserves and we believe there is potential to continue this trend going forward,” CEO David Rae said in the statement.New zoneResource estimates don’t include the Wedge Zone Deep discovery, which is located on the property’s northern flank and about 300 metres below existing reserves and current mine infrastructure. An update on drilling results from this zone is expected in the second quarter, DPM said.In the meantime, DPM is scheduled to release a three-year production outlook Feb. 10 along with its fourth-quarter results.DPM shares rose 2.6% to C$48.94 Friday morning in Toronto, giving the company a market value of about C$10.9 billion ($8 billion).Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com