26.8 C
Supported byspot_img

Dundee Gold Production Beats Estimates In Bulgaria

Member of Europium Groupspot_img
Supported byspot_img

Dundee Precious Metals Inc.  on Friday April 13 announced its mine and smelter production results for the three months ended March 31, 2018.

Highlights included better than expected production from the Chelopech Mine which is located in central-western Bulgaria approximately 70 km east of Sofia, the national capital on the southern flank of the Balkan Range.

The deposit is situated in the northern part of the Panagyurishte mining district where a number of copper-bearing massive sulphide and porphyry copper deposits are located.

Supported by

First quarter 2018 production of 57,300 ounces of gold and 9.3 million pounds of copper beat Scotiabank estimates by 20% and 3% respectively.

“The production beat is attributable to higher than expected grades during the quarter as well as a 5% beat on throughput,” said Scotiabank in an investment newsletter.

Concentrate shipments lagged for the quarter but are expected to increase over the coming quarters. At the Tsumeb smelter in Namibia, the 54,100 tonnes smelted came in below Scotiabank’s 61,900 tonne estimate and below the company’s budget but is expected to increase over the coming quarters.

Chelopech mine concentrates are shipped to the Tsumeb smelter in Namibia because the Bulgarian government degreed that concentrates could no longer be treated at the nearby MDK-Pirdop copper smelter. This was due to the high arsenic content.

Smelting rates in the first quarter were impacted due to the need to replace the furnace roof, off-gas repairs, and adverse summer weather conditions.

The annual maintenance shutdown has been deferred from March to May 2018 due to improved refractory performance in the Ausmelt furnace. The oxygen plant performance was much improved relative to the previous quarters and other optimization efforts continue.

“We had another strong quarter at Chelopech and continue to make good progress on smelter optimizing initiatives,” said Dundee President and CEO Rick Howes. “We remain on budget with construction at our Krumovgrad gold project [also in Bulgaria] with production of first concentrate on track for the fourth quarter of 2018,” he said.

Earthworks for the integrate mine waste facility have been completed. Installation of major foundations and structural steel work progressed on plan in the first quarter of 2018.

The forecast capital cost remains at $162 million to $168 million, compared with the original estimate of $178 million.

Ore milled and metals production at Chelopech and concentrate smelted at Tsumeb in the first quarter of 2018 are tracking in line with the company’s guidance, Dundee said in a press release Friday.

Meanwhile, Dundee said its first quarter 2018 operating and financial results are expected to be released after the close of trading on Wednesday, May 2, 2018.

On Friday, Dundee shares rose 2.5% or $0.08 to $3.31. The shares are trading in a 52-week range of $3.38 and $2.13.

Supported byElevatePR Digital

Related News

Rio Tinto challenges Serbian government with arbitration notice on Jadar project

Background of the dispute: Jadar project and environmental protests The British-Serbian activist group Earth Thrive has reported that Rio Tinto has officially notified the Serbian...

There is no technology that guarantees the safe processing of lithium in the form it exists in Serbia

The Rio Tinto lithium mining project has never been conclusively dismissed, just paused, waiting for the dust to settle before being reintroduced with even...

“Jadar” will not pollute river streams

As the discussion about the "Jadar" project has reignited in recent days, the public in Serbia remains confused by the extremely contradictory narratives about...

Serbia’s lithium mining revival: Implications for EU membership and geopolitics

Serbia is aiming to position itself as a significant supplier of lithium in Europe, reviving a contentious mining project that was previously abandoned due...
Supported by
Supported by
Supported by
error: Content is protected !!