DPM Metals (TSX: DPM) has extended the mine life of their flagship asset. The extension follows an update to the mineral resource and reserve estimate for the Chelopech mine in Bulgaria following extensive exploration.
Chelopech has seen the life of mine extended to 2036, resulting in a remaining life of mine of ten years. Production is expected to average approximately 160,000 gold equivalent ounces over the new ten year life of mine.
The new mine plan is expected to see average production drop from in excess of 200,000 ounces a year to approximately 170,000 ounces a year for a two year period. From 2030 onward, production is expected to fall from a high of 154,000 ounces of gold to 41,000 ounces annually by 2036.
Prior to the update, production was to drop off in 2029, before reaching 111,000 ounces of annual production in its final year of operation, which was set for 2032.
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“Our updated Mineral Reserve estimate, which extends Chelopech’s mine life to 10 years, 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,” commented David Rae, CEO of DPM Metals.
The mine life extension follows the discovery of the Wedge Zone Deep, and further exploration at the Sharlo Dere prospect. Chelopech notably saw proven and probable mineral reserve increase by 6.9 million tonnes, resulting in the addition of 174,000 ounces of contained gold and 28 million pounds of contained copper. Total proven and probable reserves stands at 1.6 million ounces of gold and 308 million pounds of copper following the latest update.
Measured and indicated resources meanwhile increased by a net 2.6 million tonnes. Contained metal in the two categories on a combined basis amounts to 1,072,000 ounces of gold and 216 million pounds of copper. A further 573,000 ounces of gold and 114 million pounds of copper exist within the inferred category.
DPM Metals last traded at $47.37 on the TSX.
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