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Dundee delivers robust PFS for its gold project in Serbia

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(Kitco News) - Dundee Precious Metals (TSX: DPM) announced Tuesday the results of a pre-feasibility study (“PFS”) for its Timok gold project in Serbia.

According to the company’s statement, the PFS is focused on the development of the oxide and transitional portions of the project and confirms Timok’s potential as an attractive organic growth opportunity within the company’s portfolio.

The highlights of PFS include an after-tax NPV (5%) of $135 million and internal rate of return of 21% (based on a $1,500 per ounce gold price assumption), with life of mine average all-in sustaining costs of $693 per ounce.

The company plans to recover 547,000 gold ounces over an 8-year mine life, with annual gold production estimated to average approximately 80,000 ounces in years 1 to 6, and approximately 70,000 ounces per year over the life of mine.

Based on the results of the PFS, the company has received Board approval to proceed with a feasibility study.

“The Timok project continues to advance as a potential future growth opportunity for DPM,” said President and CEO David Rae. “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.”

Dundee Precious Metals is a Canadian-based international gold mining company with operations and projects located in Bulgaria, Namibia and Serbia.

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