TORONTO, April 09, 2021 (GLOBE NEWSWIRE) -- Dundee Precious Metals Inc. (TSX: DPM)(“DPM” or “the Company”) announced preliminary production results from both of its mines and smelter for the three months ended March 31, 2021. The Company confirmed that its mining operations are on track to meet previously issued guidance for 2021 and provided updated guidance for its Tsumeb smelter in Namibia.

“The first quarter was a solid start to the year, which included a new record for quarterly gold production at Ada Tepe,” said David Rae, President and CEO. “With the completion of the planned maintenance at the Tsumeb smelter, we resumed full operations at the end of March and expect stronger smelter performance for the balance of the year.”

Production Highlights

Preliminary results for the first quarter are provided in the table below:

Ore processed
Metals contained in
concentrate produced Payable metals in concentrate sold Complex
concentrate smelted
(Kt)Gold (K oz.) Copper (Mlbs) Gold (K oz.) Copper (Mlbs.) (Kt) Q1 202
Chelopech 543.6 36.9 7.2 35.5 7.3 -
Ada Tepe 218.7 33.4 - 33.0 - -
Tsumeb - - - - - 23.0
Consolidated 762.3 70.3 7.2 68.5 7.3 23.0
2021 full-year guidance ( 1) 2,925 – 3,125 271 – 317 34 – 39 243 – 285 31 – 36 200 – 220

(1) As disclosed in Management’s Discussion and Analysis (“MD&A”) for the year ended December 31, 2020, issued on February 11, 2021 and available at www.sedar.com and at www.dundeeprecious.com. Guidance for Tsumeb has been revised to 200 – 220Kt from previously issued guidance for 2021 of 220 – 250 Kt.

Operational Highlights

Ada Tepe continued to deliver impressive performance, achieving a new quarterly record for gold production of approximately 33,400 ounces, which was slightly ahead of expectations. Ada Tepe is on track to achieve its previously issued 2021 guidance.

Chelopech produced approximately 36,900 ounces of gold and 7.2 million pounds of copper in the first quarter, which was slightly lower than forecast due to lower copper grades as well as lower copper and gold recovery performance with certain ore blends. Chelopech remains on track to achieve 2021 guidance.

Complex concentrate smelted was expected to be lower in the first quarter than the remainder of the year, primarily due to the planned Ausmelt furnace shutdown at Tsumeb. During the quarter, Tsumeb processed approximately 23,000 tonnes of complex concentrate, which was slightly below the guidance range of 25,000 to 30,000 tonnes provided in the Company’s news release dated March 3, 2021 and below expectations for the quarter. The Ausmelt maintenance, which was originally planned for 30 days, was extended to 45 days and was combined with additional converter maintenance that was also completed during the first quarter. The longer-than-planned timeline was primarily a result of COVID-19 related safety protocols, travel restrictions and the use of remote commissioning support, as well as a decision to increase the scope of the maintenance work around the Ausmelt lining replacement. The Ausmelt maintenance was completed during the first quarter and full operations resumed at the end of March. As a result of the extended shutdown and additional maintenance activities, DPM has revised its 2021 guidance for Tsumeb to 200,000 to 220,000 tonnes of complex concentrate smelted from the previous range of 220,000 to 250,000 tonnes.

Chelopech Mineral Resource and Mineral Reserve Update

On March 30, 2021, DPM announced a mine life extension and updated Mineral Resource and Mineral Reserve estimate for the Chelopech mine. Chelopech successfully added 3.9 million tonnes (“Mt”) to Mineral Reserves, which more than offset 2020 production depletion of 2.2 Mt for a net addition of 1.7 Mt. Relative to the previous Mineral Reserve estimate, this represents an increase of 10% in tonnage and an increase in metal content of 5% for gold, 13% for silver and 3% for copper. Proven and Probable Mineral Reserves of 1.7 million ounces of gold and 344.4 million pounds of copper support an optimized mine life that extends to 2029 as well as the Company’s previously issued three-year outlook for Chelopech.

In addition, Measured and Indicated Mineral Resources, exclusive of Mineral Reserves, increased by 22%, representing a 3.2 Mt net increase in tonnage and an increase in metal content of 12% for gold and 6% for copper, which further adds to the potential to extend mine life at Chelopech. DPM continues to focus on extending mine life at Chelopech through its in-mine and brownfield exploration programs, with an extensive program planned for 2021 that includes 44,000 metres of in-mine drilling and 38,000 metres of drilling on prospective brownfield targets.

The Mineral Resource and Mineral Reserve estimates for DPM’s Ada Tepe mine in Bulgaria and Timok gold project in Serbia remain unchanged from the estimates previously reported in the news releases dated October 16, 2020 and February 23, 2021, respectively.

Dividend

As previously announced in February 2021, DPM will pay a quarterly dividend of US$0.03 per share on April 15, 2021 to shareholders of record as at 5:00 p.m. Toronto local time on March 31, 2021.

First Quarter 2021 Results

The Company plans to release its first quarter 2021 operating and financial results after market close on Wednesday, May 5, 2021. The news release, MD&A and consolidated condensed interim financial statements will be posted on SEDAR at www.sedar.com and on the Company’s website at www.dundeeprecious.com.

On Thursday, May 6, 2021 at 9 AM EDT, DPM will host a conference call and audio webcast to discuss the results, followed by a question-and-answer session. The call-in numbers and webcast details are as follows:

Date and Time Thursday, May 6, 2021
9AM EDT
Webcast link https://edge.media-server.com/mmc/p/faf5t8yt
Telephone dial-in Toll-free (Canada and US): 1-844-402-0878
International: 1-478-219-0512
Passcode:4438728
Replay
(available for 7 days
following the call) Toll-free (Canada and US): 1-855-859-2056
International: 1-404-537-3406
Passcode:4438728
Virtual Annual Meeting of Shareholders

DPM’s Annual Meeting of Shareholders will be held on Thursday, May 6, 2021 at 4PM EDT. DPM has once again elected to hold the meeting via live audio webcast, in light of the ongoing COVID-19 pandemic. Materials for the meeting, including a user guide for accessing the virtual meeting, are available on our website at:
https://www.dundeeprecious.com/English/Investors/Disclosure-and-Reporting/default.aspx#quarterly-section.

The details for the meeting, including the link to the audio webcast, are as follows:

Date and Time Thursday, May 6, 2021
4PM EDT
Webcast https://web.lumiagm.com/?fromUrl=230058628