Dundee Precious Metals Upbeat About On Timok Project After PEA
(Kitco News) - A preliminary economic assessment shows that Dundee Precious Metals Inc.’s (TSX: DPM) Timok project in Serbia could result in average gold production of 75,000 ounces a year, all-in sustaining costs of $717 an ounce and have a mine life of nine years, the company reported late Monday.
The report showed peak annual gold production of approximately 132,000 ounces, with initial capital costs of $136 million.
The PEA is based on the updated mineral resource estimate completed in September and provides a base case, considering primarily oxide and transitional material types, upon which the project can be optimized.
“This PEA provides a solid foundation for the Timok gold project,” said Rick Howes, president and chief executive officer. “With further optimization, Timok has the potential to provide significant accretive organic growth for relatively low initial capital in a region where we have had a presence for many years. DPM discovered Timok in 2008 and the team has advanced the project while developing strong relations with local communities and the government.”
The PEA was prepared by CSA Global Consultants Canada Ltd. The PEA is preliminary in nature and includes some inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, the company added.