copper

Posts, updates and videos about copper – updated automatically.

Aben Resources, Ltd. President and CEO, Jim Pettit, Joins Everett Jolly on Uptick Newswire’s “Stock Day” Podcast

Uptick Newswire today announced Aben Resources, Ltd. CEO, Jim Pettit’s interview on Uptick Newswire’s Stock Day podcast.

“Since your last visit to our show the Company was trading around $0.09, it is now trading between $0.18 and $0.19 and trading good volume.  Can you tell me about the results of drilling last year?” asked Jolly.

“We drilled about 2,500 meters last year,” said Pettit.  “It turned out to be nine holes.  We hit a pretty significant structure, 21 gram gold, 28 gram silver and 3% copper.  The whole mineralized zone is well over 300 meters, so it is a very broad-based zone that has very high grade cores.”

“The Company’s most recent project is the Forrest Kerr Project in a region in British Columbia called the Golden Triangle,” said Jolly.  “Where they began an 18-hole project.”

To listen to the full interview please click here to the following link: https://upticknewswire.com/featured-interview-ceo-jim-pettit-of-aben-resources-ltd-otcqb-abnaf-2/

About Aben Resources:
Aben Resources is a Canadian gold exploration company developing projects in British  Columbia’s Golden Triangle, the Yukon and Saskatchewan.
Aben Resources has approx. 81.1 million shares issued and outstanding with approx. $3.1 million in its treasury.

For further information on Aben Resources Ltd. (TSX-V:ABN), visit our Company’s web site at www.abenresources.com.
ABEN RESOURCES LTD.
“Jim Pettit”

JAMES G. PETTIT
President & CEO
For further information contact myself or:
Don Myers
Aben Resources Ltd.
Director, Corporate Communications
Telephone: 604-639-3851
Toll Free: 800-567-8181
Facsimile: 604-687-3119
Email: info@abenresources.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This release includes certain statements that may be deemed to be “forward-looking statements”. All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.

About Uptick Newswire and the “Stock Day Podcast”
Uptick Newswire is a private company reaching out to the masses keeping investors and shareholders up to date on company news and bringing transparency to the undervalued, undersold, micro-cap stocks of the market and is the sole producer of the Uptick Network “Stock Day” Podcast. The Uptick Network “Stock Day” Podcast is an extension of Uptick Newswire and has recently launched the Video Interview Studio located in Phoenix, Arizona.

Investors Hangout is a proud sponsor of Stock Day and Uptick Newswire encourages listeners to visit Aben Resources, Ltd. message board on: https://investorshangout.com/

Source: Uptick Newswire

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Great Infographic on Copper

Over at the Visual Capitalist, Jeff Desjardins has a fact filled infographic up on copper. More specifically, the fact that copper demand is going to soar in the face of the need to build grid capacity, power electric cars and generally move towards an all electric future.

Worth the time to take a look

Copper: Driving the Green Energy Revolution

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Copper Crunch?

Over at mining.com there is an intriguing story about a looming copper supply deficit:

“The situation looks even worse when considering that over 200 copper mines currently in operations will reach the end of their productive life before 2035, Sampson said on Monday.

Only if every single copper project currently in development or being studied for feasibility is brought online before then, including most discoveries that have not yet reached the evaluation stage, the market could meet projected demand, the consultant said.”

Read the whole thing

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Grizzly Discoveries Enters LOI to Purchase Cobalt-Copper-Silver Claims in Southeastern British Columbia

Edmonton, Alberta–(Newsfile Corp. – March 27, 2018) – Grizzly Discoveries Inc. (TSXV: GZD) (OTC Pink: GZDIF) (FSE: G6H) (“Grizzly” or the “Company”) is pleased to announce that it has entered into a Letter of Intent (“LOI”) with a private group (the “Vendors”) to purchase the Cobalt-Copper-Silver “Robocop Property”, located within the Fort Steele Mining District in southeastern British Columbia.

The Robocop Property (the “Property”) is located in southeastern British Columbia, approximately 45 kilometres (km) south of Fernie and 70 km southeast of Cranbrook, and is immediately north of the Canada-USA border. The Property is comprised of 5 mineral claims totalling 9,891 acres. The property is located east of Grizzly’s Greenwood Property in southeastern British Columbia.

Areas with significant historic cobalt-copper-silver (Co-Cu-Ag) in soil anomalies have been identified on the Robocop Property. Additionally, historic drilling during the 1990’s (Teck Explorations Ltd.) and early 2000’s (Ruby Red Resources) has yielded grades of up to 0.18% Co, 0.28% Cu, 4.1 parts per million (ppm) Ag over 1 m core length (Pighin, 2009) and 0.134% Co, 1.19% Cu and 33.8 ppm Ag over 1.23 m core length (Thomson, 1990) for individual core samples. The Co-Cu-Ag mineralization is hosted in Sheppard Formation and is classified as Proterozoic sediment hosted mineralization. Grizzly believes that significant potential exists to expand the known extent of the known Co-Cu-Ag mineralization on the Property and further exploration is warranted.

Under the terms of the LOI, Grizzly would acquire a 100% interest in the Robocop Property subject to a 3% net smelter royalty (“NSR”) by issuing to the Vendors 2,000,000 units, with each Unit consisting of one common share of Grizzly and one transferrable share purchase warrant. Each warrant will entitle the holder to acquire one further share of GZD at an exercise price of $0.14 for a period of 3 years from the date of issuance.

The Property carries a 3% NSR and, under the terms of the LOI, Grizzly has the right to purchase up to 2% of the NSR (down to 1% NSR) within two years after the delivery of a positive Feasibility Study for the Property, for the amount of $1,500,000.

Pursuant to signing the LOI, the Company will conduct due diligence and work to enter into a definitive agreement to complete the transaction. The definitive agreement is subject to approvals by the Board of Directors and acceptance by the TSX Venture Exchange.

Brian Testo, CEO of Grizzly, commented, “We have been able to negotiate a favourable purchase of 100% interest in the Robocop Property, which we believe will provide an excellent cobalt exploration opportunity for Grizzly. It is in the same region of BC as our Greenwood Property, where we have excellent relationships with the First Nations, and years of operating experience. We feel that the historic sampling and drill results are very significant, and that this Property has excellent potential for the discovery of a Co-Cu-Ag deposit. Our first step will be to undertake exploration including an airborne survey and drilling leading to an initial resource estimate.”

Click this link for: Signature Video with Grizzly CEO Brian Griz Testo

ABOUT GRIZZLY DISCOVERIES INC.

Grizzly is a diversified Canadian mineral exploration company with its primary listing on the TSX Venture Exchange with 58.7 million shares issued, focused on developing its precious metals properties in southeastern British Columbia, and significant Potash and Diamond assets in Alberta. The Company holds, or has an interest in: over 180,000 acres of precious-base metal and cobalt properties in British Columbia; metallic and industrial mineral permits for potash totalling more than 60,000 acres along the Alberta-Saskatchewan border, and more than 161,000 acres of properties which host diamondiferous kimberlites in the Buffalo Head Hills region of Alberta.

The technical content of this news release and the Company’s technical disclosure has been reviewed and approved by Michael B. Dufresne, M. Sc., P. Geol., P.Geo., who is the Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.

On behalf of the Board,

Grizzly Discoveries Inc.
Brian Testo
President
(780) 693-2242

For further information, please visit our website at www.grizzlydiscoveries.com or contact Investor Relations:

Nancy Massicotte
IR PRO COMMUNICATIONS
 INC.
Tel: 604-507-3377
Toll Free: 1-866-503-3377
Email: ir@grizzlydiscoveries.com
www.irprocommunications.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution concerning forward-looking information

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as “may,” “will,” “should,” “anticipate,” “plan,” “expect,” “believe,” “estimate,” “intend” and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Grizzly in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Grizzly’s actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.

Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Grizzly disclaims any obligation to update or revise any forward-looking information or statements except as may be required by law.

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AbraPlata Announces Issuance of Stock Options

AbraPlata Resource Corp. (“AbraPlata” or the “Company”) (TSX-V:ABRA) (OTCPK:ABBRF) (Frankfurt:1AH) announces that a total of 1,125,000 incentive stock options have been granted to directors, officers, employees and consultants of the Company. The stock options have an exercise price of CAD$0.20 per share and are exercisable for a period of five years from the date of grant. The stock options vest 25% immediately, 25% after six months, 25% after twelve months and 25% after eighteen months.

About AbraPlata

AbraPlata is a junior mining exploration company focused on delivering shareholder returns by unlocking mineral value in Argentina.  The Company’s experienced management team has assembled an outstanding portfolio of gold, silver and copper exploration assets, and is focused on advancing its flagship Diablillos silver-gold property, with an indicated resource of 80.9M oz Ag and 732k oz Au, through the various stages of feasibility.  In addition, AbraPlata owns the highly prospective Cerro Amarillo property with its cluster of five mineralized Cu-(Mo-Au) porphyry intrusions located in a mining camp hosting the behemoth El Teniente, Los Bronces, and Los Pelambres porphyry Cu-Mo deposits. Further exploration work is also planned for the Company’s Samenta porphyry Cu-Mo property, located south of First Quantum’s TacaTaca project, as well as its Aguas Perdidas Au-Ag epithermal property.

ON BEHALF OF THE BOARD
ABRAPLATA RESOURCE CORP.

Willem Fuchter”

Willem Fuchter
President and Chief Executive Officer

For further information concerning this news release, please contact:

Willem Fuchter
President & Chief Executive Officer
AbraPlata Resource Corp.
Tel: +54.11.5258.0920
E-mail: willem@abraplata.com
Rob Bruggeman
Investor Relations
AbraPlata Resource Corp
Tel: +1.416.884.3556
Email: rob@abraplata.com

This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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Infographic: The coming copper shortage

Our friends at Western Copper and Gold have a mountain top of copper and gold in the Yukon. Billions of pounds of copper, millions of ounces of gold. It is a 2 billion CAPEX project which makes sense when copper is selling above $3.50.

They have commissioned Visual Capitalist to make an infographic about the looming copper shortage – and price rise by implication.

Take a minute to look at the infographic.

The only thing that’s missing in this infographic is the projected demand from India and from rapidly industrializing countries like Malaysia, Indonesia and Thailand. Where ever electricity is being brought to industry and the masses there will be a huge demand for copper. For the last two decades, China has dominated demand. That will change as emerging economies electrify.

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Crown Mining Corp. Completes Purchase of Moonlight Property

Crown Mining Corp. (TSXV: CWM) (“Crown” or “the Company”) is pleased to announce that it has exercised its option to acquire and completed the purchase of a 100% undivided right, title and interest in its Moonlight property (the “Property”) located in Plumas County in northeast California, USA.

The option agreement was entered into with Canyon Copper Corp in February 2016 (see press release dated February 29, 2016) providing the Company with the option to acquire the Property at any time on or before the 36-month anniversary of the agreement.  Pursuant to the terms of the agreement, from the date of the agreement until the closing of the acquisition, total cash consideration of $375,000 was paid by the Company to the vendors along with 2,750,000 shares of Crown issued to the vendors. The final payment of $350,000, which is included in the total cash consideration of $375,000, was paid by Crown into escrow on February 26, 2018 pending completion of the recording of the transfer documentation.

The Moonlight property consists of 208 unpatented mining claims covering approximately 4000 acres subject to an underlying 2.5% net smelter returns royalty. All claims have been transferred to Crown and recorded in Crown’s name at the Bureau of Land Management and in the Plumas County records office.

Other Recent News about Crown

Crown just recently released the results of a Preliminary Economic Assessment (“PEA”) prepared by Tetra Tech Inc on March 2, 2018 regarding the Company’s Moonlight Copper Project.

The PEA was prepared pursuant to National Instrument 43-101 standards by independent consultant, Tetra Tech Inc., and the full technical report will be filed on SEDAR within 45 days of this news release.

The full news release can be found on both the company’s website at www.crownminingcorp.com or on www.sedar.com under the Crown Mining Corp. profile.

About Crown Mining Corp.

Crown controls approximately 15 square miles of patented and unpatented federal mining claims in the Light’s Creek Copper District in Plumas County, NE California; essentially, the entire District. The District contains substantial copper (silver) sulfide and copper oxide resources in three deposits — Moonlight, Superior and Engels, as well as several partially tested and untested exploration targets.

The Superior and Engels Mines operated from about 1915-1930 producing over 161 million pounds of copper from over 4 million tons of rock containing 2.2% copper with silver and gold credits. The Moonlight Deposit was discovered and drilled by Placer Amex during the 1960’s.

Further details of the resources on Crown’s property and the parameters used to calculate them can be found in the Technical Report on the Superior Project dated November 7, 2014 filed on Sedar.com. Additional historical resource estimates are also disclosed in these reports.

Mr. George Cole is the Qualified Person pursuant to NI 43-101 responsible for the technical information contained in this news release, and he has reviewed and approved this news release.

For more information please see the Crown website at www.crownminingcorp.com.

For Further Information Contact:

Mr. Stephen Dunn, President, CEO and Director, Crown Mining Corp. (416) 361-2827 or email info@crownminingcorp.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

This press release contains forward-looking statements within the meaning of applicable Canadian and U.S. securities laws and regulations, including statements regarding the future activities of the Company. Forward-looking statements reflect the current beliefs and expectations of management and are identified by the use of words including “will”, “anticipates”, “expected to”, “plans”, “planned” and other similar words. Actual results may differ significantly. The achievement of the results expressed in forward-looking statements is subject to a number of risks, including those described in the Company’s management discussion and analysis as filed with the Canadian securities regulatory authorities which are available at www.sedar.com. Investors are cautioned not to place undue reliance upon forward-looking statements.

This news release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction. The common shares will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.

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Copper with a Low CAPEX: Crown Mining

Whenever a company comes out with a PEA I always look at the CAPEX first. The fact is that, regardless of the size of the resource, the estimated mine life or the internal rate of return, the CAPEX number gives a good first approximation of whether a project is actually feasible.

513 Million dollars is the CAPEX of Crown Mining’s (V.CWM) Moonlight Copper Project located in Plumas County, California. A big number but relatively minimal in the context of copper mine CAPEXs which often run over 1.5 billion and up.

In the release, Crown’s President & CEO, Stephen Dunn stated, “The Company is very encouraged with the results of the PEA as they support the concept that the Moonlight Project can be developed as a profitable mining operation at current copper prices. The current study only focuses on the Moonlight deposit and does not factor in the other two deposits or the several untested exploration targets on our property. Additional exploration success at Moonlight and the inclusion of these other deposits could have a significant influence on the size, value and timing of the overall development plan as we move forward.”

Speaking with Dunn, a bit of the background of the surprisingly low CAPEX emerged. “A lot of the infrastructure is already available at the property,” said Dunn. “Roads, power, water are all in place and those are expensive if you have to build them. The terrain itself is also very favourable and the deposit is right at surface which means that the strip ratio is quite low. That, plus the positive metallurgy that we reported in January, makes for a very economic operation at today’s copper prices. But, from the investor perspective, the word “California” with all of its regulatory and environmental implications is sometimes mentioned as  bit of a drawback. Dunn thinks it shouldn’t be.

“This is a very mining friendly part of the state, said Dunn. “And in California, the county is the lead agency in the permitting process. The election of Trump has also helped on both the regulatory and on the tax front.”

Dunn is not shy about the plan for the property. “This is an option on copper. It makes economic sense at the present price of copper. By doing the PEA we’ve shown that the project makes economic sense and should be looked at.”

“When we have tried to talk to the majors in thepast theyy all wanted better data. With this PEA and new and updated block models and metallurgy, we should be able to attract their attention now.

With a 513 million dollar CAPEX even a smaller producer could take on the Crown Mining Midnight Copper Project. At $3.50 copper it would be attractive economically, but if, as many think it will, copper heads up towards $4.00 the project and the company will look like a screaming deal.

Investors look at the market cap rather than the projected CAPEX and here Dunn has done a very good job avoiding dilution of the Crown Mining shares. Even after the company’s last raise it only has 39 million shares outstanding. Those are trading at $0.25 so the market cap remains under 10 million dollars. The shares are fairly closely held and even a glimmer of interest from an acquiring company could send the shares higher. Much higher.

So could a rise in the price of copper.

But while Crown waits for an offer or a price rise, or both, Dunn is not standing still. “This initial PEA is very conservative. It has a 71 million dollar contingency built into the CAPEX. It does not include gold credits and it treats the oxide as waste. With a small drill program we should be able to substantially improve on the economics of our PEA, so We’ll probably do a revision in a year.”

Simply having the PEA on one of the multiple deposits on the Crown Mining land is an important first step. It underscores where work is needed and where savings can be found. It derisks the project overall. Most importantly, it gives Crown Mining the hard data any acquiring company needs to be able to see.
—–
James West at the Midas Letter made a great video about Crown Mining and copper:

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Crown Mining Corp. Announces PEA Results for the Moonlight Copper Project

Crown Mining Corp. (TSXV: CWM) (“Crown” or “the Company”) is pleased to report strong results of the Preliminary Economic Assessment (PEA) completed by Tetra Tech, regarding the Company’s Moonlight Copper Project located in Plumas County, California, USA.

Highlights of the PEA Include:

  • Pre-tax Net Present Value (NPV): US$ 237M at 8% discount rate
  • Pre-Tax Internal Rate of Return (IRR): 16.4%
  • Pre-tax Payback Period: 4.8 years
  • After-tax NPV of US$179M and after tax IRR of 14.6% for the base case
  • Initial Capital Cost: US$513M, including a contingency provision in the amount of US$71M
  • Plant Processing Rate: 60,000 tons per day (STPD)
  • Average Copper Recovery: 86.0%
  • Copper concentrate Production: Averaging 163,000 tons per year (STPY) with an average grade of 28%
  • Mine Life: 17 years, based on the existing Mineral Resource estimate
  • Projected Direct Employment: 332 employees (163 process and G&A; 169 mining)
  • Life of mine copper production of 1.5 billion pounds

The PEA was prepared under National Instrument 43-101 standards by independent consultant, Tetra Tech, and the full technical report will be filed on SEDAR within 45 days of this news release. The Company also engaged Cameron Resource Consulting, LLC (CRC) for the resource modeling.

Crown’s President & CEO, Stephen Dunn commented: “The Company is very encouraged with the results of the PEA as they support the concept that the Moonlight Project can be developed as a profitable mining operation at current copper prices.”

“The current study only focuses on the Moonlight deposit and does not factor in the other two deposits or the several untested exploration targets on our property. Additional exploration success at Moonlight and the inclusion of these other deposits could have a significant influence on the size, value and timing of the overall development plan as we move forward.”

“We are also very excited with the potential for job opportunities for Plumas County and surrounding regions. The PEA estimates approximately 330 year round jobs will be created during mine operations. This will be an important economic boost for the local communities near our property that currently have limited opportunities for long term employment.”

“With the recent rally in copper prices and given the projected doubling in demand for copper over the next 20 years from the electric-vehicle revolution, renewable energy technologies, population growth and global urbanization, we expect renewed attention on undeveloped copper deposits like our Moonlight-Superior project. We at Crown Mining remain focused on unlocking the full potential of the Moonlight-Superior project and look forward to advancing our project to the development stage.”

Mineral Resource Estimate

The Moonlight Deposit, part of the Moonlight-Superior Project in the historic Lights Creek District of Plumas County, California, is a disseminated copper deposit hosted by the Lights Creek stock of early Jurassic age and intruded metavolcanic rocks. The deposit lies at the northern end of the Sierra Nevada physiographic province at its juncture with the Late-Tertiary-to-Recent Cascade volcanic province to the north and the Basin and Range province immediately to the east. The Lights Creek stock is a roughly circular, tourmaline-rich quartz monzonite intrusive with areal extent of approximately 7sq mi. Copper mineralization, mostly comprising chalcopyrite and bornite or their near-surface oxidation products, is preferentially located in stockwork zones with fractures of multiple orientations, or at the intersection of structures and lithologic contacts.

The Mineral Resource estimate for the Moonlight Copper Project has been prepared for Crown Mining Corp (CM) by CRC with an effective date of December 15, 2017. The Mineral Resource estimate incorporates geologic interpretations and a database compiled from historic drilling campaigns. The resource database comprises 202 drill holes with 11,005 copper assays, 10,555 gold assays and 10,675 silver assays. Of the total, 189 holes are vertical N- and B-sized diamond drill holes drilled by American Exploration Inc. (AMEX) from 1966 — 1970. Sheffield Resources Ltd. (Sheffield) completed 13 angled HQ-sized diamond drill holes in 2005 — 2006, making up the remainder. Many of the historic drill hole collars can be located on the surface; several collar locations were confirmed by CRC as part of the field data verification for this study. CRC performed spot check sampling and assaying of remaining drill core and select mineralized surface exposures. Drill hole logs and assays from the historic drill campaigns were checked by CRC against information contained in the drill hole database used for Mineral Resource estimation. An historic estimate for the deposit was filed in a 43-101 Technical Report on SEDAR in 2007, but is superseded by the Mineral Resource estimate reported here.

Moonlight deposit drill spacing comprises a fairly regular 300 x 300 ft grid aligned with the overall deposit trend. Drill spacing opens up near the bottom of the deposit due to variable drill hole depths. Separate mineralized pods with northwest trend align to form an overall north-northeast deposit trend, discerned as part of exploratory data analysis using contours of copper, gold and silver bench composites. The two trends are sub-parallel to faults mapped on the surface beyond the edges of the deposits. Structural complication by faulting inside the deposit outline does not appear to be major.

Most copper assaying by AMEX was in 10 ft lengths; Sheffield data, composing approximately 15% of the resource database, comprises 6.5 ft (2m) sample lengths and assays for copper, silver and gold. AMEX gold and silver assays were performed on 100 ft composites. Sheffield assay data is supported by laboratory assay certificates, stored drill core and records from its quality control (QA-QC) program. AMEX assay data is only supported by handwritten assays on drill logs and comparable results from a Sheffield twin-hole program. The review of the AMEX data by CRC supports its use for estimation of copper and silver. Approximately 80% of assays are from quartz monzonite, and nearly all of the rest are in relatively low-grade metavolcanic wall-rocks. Less than 10% of the assays are from oxidized rocks. Copper assays were composited for estimation to the proposed bench height (50 ft); gold and silver were composited to 100 ft intervals consistent with the general assay lengths for these metals.

Geologic units interpreted in three dimensions from plans and sections include the principal quartz monzonite stock host, a metavolcanics solid, Tertiary sediment cover, and a late basalt plug. An oxide lower surface was also interpreted from the drill logs to permit removal of oxide material from the mine plan. An outer 0.1% Cu grade shell was constructed by contouring indicator estimate results on sections and reconciling (smoothing) the sectional interpretation on closely-spaced plans. The geologic interpretation was used to domain the deposit based on further statistical analysis, capping and variography. Reliable directional variograms were obtained for copper and omnidirectional variograms for silver. The quartz monzonite was found to contain approximately 90% of mineralization >0.1% Cu.

A block model was constructed with dimensions of 100 x 100 x 50 ft high to cover the Moonlight deposit from the surface to a maximum depth at 4200 ft elevation. Grade estimates were by ordinary kriging methods for copper and silver, and inverse distance methods (ID3) for gold using Micromine software. Gold estimates outside the areas infill-drilled by Sheffield were assigned the mean value of the blocks estimated by Sheffield data. A single specific gravity value was assigned to the block model based on a statistical analysis of measurements collected by Sheffield from drill cores. Mineral Resources estimates were validated graphically, for absence of global and local bias, and for change-of-support. A summary of the estimates for the Moonlight deposit is listed in the Mineral Resource statement below:

Moonlight Mineral Resources as of December 15, 2017 1,2,3,4,5,6,7

Class Tons
(000’s)
Cu
(%)
Au
(opt)
Ag
(opt)
Cu Tons
(000’s)
Au Oz
(000’s)
Ag Oz
(000’s)
Indicated 252,000 0.25 0.0001 0.07 636 18 18,400
Inferred 109,000 0.24 0.0001 0.08 267 9 9,000

 

(1) Mineral Resources are estimated using CIM Best Practices guidelines and 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves.

(2) The Qualified Person for the Mineral Resources is Donald E. Cameron, Registered Geologist, Society of Mining Engineers (SME).

(3) Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

(4) It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

(5) Rounding as required by reporting guidelines may result in apparent differences between tons, grade and contained metal content.

(6) Mineral Resources are reported above a $6.25 net smelter return (NSR) cut-off (NSR=44.08*Cu + .348*31.10348*Ag) and within a conceptual pit shell using copper, gold and silver prices of US$ 3.00/lb, $1275/oz and $17.5/oz, respectively, and preliminary operating costs as of the effective date of this Mineral Resource.

(7) Effective date of Mineral Resource is December 15, 2017.

Moonlight Mineral Resources are moderately sensitive to the selection of the reporting cut-off grade. In comparison with the historical 43-101 Mineral Resource (2007), the current Mineral Resource estimates are based on an updated drill hole database, are supported by a more developed lithologic model and addition of an oxidation model, and use grade caps to reduce metal-at-risk rather than an indicator approach. Classification is based on drill hole spacing, confidence criteria and a pit shell to demonstrate reasonable prospects for economic extraction, whereas in the historical estimate classification was based mainly on estimation pass.

Proposed Mining Plan

Mining will be open pit-only using drill and blast, truck and shovel methods. Mining is planned to be conducted using 50 ft benches with a maximum overall pit slope of 45 degrees. The mine plan developed for the PEA is based on Geovia Whittle™ optimization. Over the mine life 650 million tons will be moved which includes 365 million tons as mill feed and 286 million tons as waste rock and rejected low grade material below cut-off grade.

The mining fleet includes 244 ton trucks, loaded by 29 yd3 diesel hydraulic shovel and 26 yd3 wheel loader. Drill and blast will be done with track mounted drill rigs drilling 10 inch holes. Explosives are planned as down hole service by explosives supplier. Haul roads are designed to be 100 ft wide to allow for two-way traffic at a maximum gradient of 8%.

Strip ratios vary over life of mine ranging from 0.2 to 1.4 with an average of 0.78.

Proposed Processing Plant

The treatment technology proposed for the project is the conventional flotation concentration. The processing plant will consist of crushing and grinding circuits, followed by a flotation process to recover and upgrade copper and silver from the feed material.

The mill feed will be crushed by one 63″ x 89″ or equivalent gyratory crusher to 80% passing approximately 6″. Crushed material will be fed into a stockpile of 55,000-ton live capacity and then be further crushed by three cone crushers (each with an installed power of 1,000 hp, two in operation and one standby) followed by two high pressure grinding rolls (HPGR, each with an installed power of 7,500 hp). The product from the HPGR circuit will be further ground to 80% passing 110 micron by two ball mills (each with an installed power of 25,000 hp). The slurry from the hydrocyclones will feed one bank of rougher flotation cells, each with 10,500 ft3 volume. The rougher concentrate will be reground to 80% passing approximately 50 micron prior to three stages of cleaner flotation by conventional flotation cells. The flotation concentrate will be thickened and filtered and sent to the concentrate stockpile for subsequent shipping to the smelter. The tailings produced will be impounded in a tailings management facility (TMF) located at south of the processing plant.

At this stage of the study, value of gold has not been included in the economic evaluation. Further investigation on gold credits should be conducted during the next phase of the study.

Tetra Tech used the metallurgical test work results and the report provided by Allihies Engineering Inc. in collaboration with Continental Metallurgical Services, for processing plant design. The metallurgical results were disseminated in the January 04, 2018 Press Release titled, “Crown Mining Reports Results from Metallurgical Study”.

Infrastructure

The Project site is currently accessible via the existing network of logging roads, designed for accommodating heavy equipment and vehicles used for logging activities. The power will be drawn from the existing network of transmission lines located in Westwood, CA, which is approximately 10 miles northwest of the project site.

The major buildings on site will include the process plant, primary crushing facility, secondary and tertiary crushing, concentrate storage and loadout, truck shop complex, warehouse, administration, assay laboratory and substation. A connecting network of roads that are required to access the various facilities including the laydown area, the open pit, the process plant, ancillary buildings, the primary crusher, the TMF, and the mining operations staging points will be constructed.

The project is expected to provide direct employment to approximately 330 hourly and staff personnel, which are expected to be from the surrounding communities to provide supports to the project. During the construction phase, the peak work force is expected to reach 450. The project construction will provide additional employment opportunities to the surrounding communities.

Economic Analysis and Sensitivity Analysis

The operating assumptions for the financial model for the project are as follows:

Item Units LOM Total
Life of mine years 17
Annual tons processed (LOM average) ktons 21,469
Total tons mined including waste rock ktons 650,846
Total tons processed ktons 364,967
Total tons concentrate produced (dry mass) ktons 2,763
Copper recovered to concentrate ktons 774
Silver recovered to concentrate koz 19,141
Net revenue from sales US$ millions 4,468
Life of mine operating costs
Mining* US$ millions 856
Processing & tailings management US$ millions 1,740
General and administrative US$ millions 237
Total life of mine operating costs US$ millions 2,832
Life of mine unit operating costs
Mining US$/ton mined 1.32
Mining US$/ton processed 2.35
Processing & tailings management US$/ton processed 4.77
General and administrative US$/ton processed 0.65
Total life of mine operating costs US$/ton processed 7.76
Cash flow
Copper price US$ per lb. 3.15
Pre-tax operating cash flow US$ millions 851
Pre-tax net present value at 8% US$ millions 237
Pre-tax internal rate of return % 16.4
Post-tax operating cash flow US$ millions 708
Post-tax net present value at 8% US$ millions 179
Post-tax Internal rate of return % 14.6

 

*Includes pre-production mining cost.

The initial and sustaining capital costs are presented as follows:

Capital costs
Initial capital costs US$ millions 513
Mining equipment leasing costs (life of mine)* US$ millions 148
Life of mine sustaining costs US$ millions 97
Reclamation costs US$ millions 60
Total US$ millions 818

 

* Includes pre-production leasing cost.

Breakdown of the initial capital cost is as below:

Item US$ million
Site Development 40.4
Mining (excludes leased equipment) 15.6
Process 185.3
Tailings & Waste Rock Management 12.2
Utilities 7.7
Buildings 59.8
Plant Mobile Equipment & Misc. 3.9
Indirect Construction Costs 104.9
Owner’s Costs 12.4
Contingency 70.7
Total 512.9

 

A sensitivity analysis was performed, to test the impact of changes to copper price included in the economic model, with the following results:

Cu Price Ag Price Pre-tax NPV Pre-tax IRR Post-tax NPV Post-tax IRR
US $/lb. US $/oz US $ Million % US $ Million %
3.00 18.00 132 12.9 91 11.5
3.15 18.00 237 16.4 179 14.6
3.25 18.00 307 18.6 236 16.6
3.50 18.00 482 23.9 376 21.1
4.00 18.00 832 33.5 653 29.4

 

Environmental Assessment

Baseline data availability for the Moonlight Project is not robust, however, the surface water sampling that has been done shows that water quality criteria are not exceeded in the main stems of the major drainages receiving runoff from developed or undeveloped portions of the property. Acid base accounting of waste rock and tailings from existing impacts and recent drilling shows that acid generation will not be a significant issue and that metals leaching is low. This supports the water quality results. No other baseline data have been collected for the project.

Permitting will take place under federal and state regulatory regimes as property ownership is both private and federally managed. For this, environmental impact assessments are mandated and will need to assess the full range of anticipated impacts from mining, transportation and waste disposal. Significant additional baseline data collection for this process will be required. California law includes a requirement for backfilling of open pits with available material. This will need to be considered in reclamation planning and bonding.

Qualified Persons

The technical disclosures in this press release have been reviewed and approved by Mr. George Cole of Crown Mining Corp., together with the following independent qualified persons;

• Donald Cameron, Reg. Geologist, SME, consultant, CRC, responsible for Mineral Resource estimate.

• Mark Horan, P.Eng., consultant, Tetra Tech, responsible for mine planning and economic analysis.

• Dr. John Huang, P.Eng., consultant, Tetra Tech, responsible for process.

• Hassan Ghaffari, P.Eng. , consultant, Tetra Tech, responsible for metallurgy, infrastructure and cost estimation.

Cautionary Notes

Please note that the PEA is preliminary in nature, that it includes 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, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

About Crown Mining Corp.

Crown controls approximately 15 square miles of patented and unpatented federal mining claims in the Light’s Creek Copper District in Plumas County, NE California; essentially, the entire District. The District contains substantial copper (silver) sulfide and copper oxide resources in three deposits — Moonlight, Superior and Engels, as well as several partially tested and untested exploration targets.

The Superior and Engels Mines operated from about 1915-1930 producing over 161 million pounds of copper from over 4 million tons of rock containing 2.2% copper with silver and gold credits. The Moonlight Deposit was discovered and drilled by Placer Amex during the 1960’s.

Other than the Moonlight Mineral Resource mentioned above, the Superior and Engels deposits host the following National Instrument 43-101 (“NI 43-101”) Mineral Resources, estimated using ordinary kriging and reported at a cutoff grade of 0.20% copper:

Superior and Engels Mineral Resources as of November 15, 2013*

Deposit Tons
(000’s)
Cu
(%)
Cu Tons
(000’s)
Superior (Inferred) 59,500 0.41 244
Engels — oxide (Inferred) 2,800 1.05 29

 

*Re-stated in Imperial units

Further details of these resources and the parameters used to calculate them can be found in the Technical Report on the Superior Project dated November 7, 2014 filed on Sedar.com. Additional historical resource estimates are also disclosed in these reports.

Mr. George Cole is the Qualified Person pursuant to NI 43-101 responsible for the technical information contained in this news release, and he has reviewed and approved this news release.

For more information please see the Crown website at www.crownminingcorp.com.

For Further Information Contact:

Mr. Stephen Dunn, President, CEO and Director, Crown Mining Corporation (416) 361-2827 or email info@crownminingcorp.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

This press release contains forward-looking statements within the meaning of applicable Canadian and U.S. securities laws and regulations, including statements regarding the future activities of the Company. Forward-looking statements reflect the current beliefs and expectations of management and are identified by the use of words including “will”, “anticipates”, “expected to”, “plans”, “planned” and other similar words. Actual results may differ significantly. The achievement of the results expressed in forward-looking statements is subject to a number of risks, including those described in the Company’s management discussion and analysis as filed with the Canadian securities regulatory authorities which are available at www.sedar.com. Investors are cautioned not to place undue reliance upon forward-looking statements.

This news release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction. The common shares will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.

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Dundee Precious Metals announces 2017 Fourth Quarter and Annual Results and 2018 Guidance

Annual Financial and Operating Highlights:                           

  • Metals production – Produced record gold production of 197,684 ounces and outperformed 2017 guidance. Copper production of 35.8 million pounds was in line with guidance;
  • Smelter – Smelted 219,252 tonnes of complex concentrate in line with 2017 guidance and generated positive cash flow in 2017;
  • Near term growth opportunities – Krumovgrad construction forecast to be completed below budget and remains on track to produce first concentrate in the fourth quarter of 2018;
  • Cash flow – Generated $110 million in cash flow from operating activities and free cash flow(1) of $46 million; and
  • Financial position – Ended 2017 with approximately $281 million of cash resources, including long-term revolving credit facility.

TORONTO, Feb. 15, 2018 (GLOBE NEWSWIRE) — Dundee Precious Metals Inc. (“DPM” or the “Company”) (TSX:DPM) today reported a fourth quarter net loss attributable to common shareholders from continuing operations of $1.4 million ($0.01 per share) compared to a net loss of $107.5 million ($0.67 per share) for the same period in 2016. Net earnings attributable to common shareholders from continuing operations in 2017 were $0.2 million ($nil per share) compared to a net loss attributable to common shareholders from continuing operations of $150.0 million ($1.00 per share) in 2016.

Net (loss) earnings attributable to common shareholders from continuing operations for the fourth quarter and twelve months of 2017 and 2016 were impacted by net after-tax losses of $4.8 million (2016 – $113.1 million) and $16.5 million (2016 – $127.6 million), respectively, related to several items not reflective of the Company’s underlying operating performance, including impairment charges taken in 2016, and unrealized losses and gains on commodity price and foreign exchange hedges, each of which are excluded from adjusted net earnings (loss).

Adjusted net earnings(1) during the fourth quarter of 2017 were $3.4 million ($0.02 per share) compared to $5.7 million ($0.04 per share) in the corresponding period in 2016. This decrease was due primarily to higher treatment charges for Chelopech, partially offset by higher volumes of payable metals in concentrate sold, lower depreciation and higher realized metal prices.

For 2017, adjusted net earnings were $16.7 million ($0.09 per share) compared to an adjusted net loss of $22.4 million ($0.15 per share) in 2016. The improved earnings were due primarily to higher volumes of payable gold in concentrate sold, higher volumes of complex concentrate smelted and higher realized metal prices, partially offset by higher treatment charges and operating expenses.

“2017 was a very strong year,” said Rick Howes, President and CEO. “Chelopech delivered record gold production and outperformed guidance, while Tsumeb continued to demonstrate improvements in operating stability and performance and generated positive cash flow during the year. With first production from our low cost Krumovgrad gold project expected in the fourth quarter of 2018, we are fast approaching a new phase of growth that is expected to deliver a significant increase in gold production and operating cash flows. Together with our strong balance sheet and available capital resources, we are well positioned for 2018 and beyond.”

Adjusted EBITDA

Adjusted EBITDA(1) during the fourth quarter and twelve months of 2017 was $21.8 million and $92.1 million, respectively, compared to $30.2 million and $73.0 million in the corresponding periods in 2016. Adjusted EBITDA was impacted by the same factors affecting adjusted net earnings (loss), except for depreciation, interest and income taxes, which are excluded from adjusted EBITDA.

Production

In the fourth quarter of 2017, gold contained in concentrate produced increased by 12% to 49,390 ounces, copper production increased by 7% to 9.5 million pounds and silver production increased by 6% to 53,920 ounces, in each case, relative to the corresponding period in 2016. The increase in gold production was due primarily to higher than anticipated gold grades and higher recoveries. The increase in gold recoveries was due primarily to ore mineralogy and the benefits of various initiatives with a specific focus on improving recoveries. The increase in copper production was due primarily to higher planned copper grades, consistent with the 2017 mine plan.

In 2017, gold contained in concentrate produced increased by 19% to 197,684 ounces, copper production decreased by 7% to 35.8 million pounds and silver production decreased by 9% to 206,767 ounces, in each case, relative to 2016. The increase in gold production was due primarily to higher gold recoveries and higher than anticipated grades. The decreases in copper and silver production were due primarily to lower grades, consistent with the 2017 mine plan.

Complex concentrate smelted during the fourth quarter of 2017 of 58,983 tonnes was 4% or 2,287 tonnes lower than the corresponding period in 2016 due primarily to reduced availability of the high pressure oxygen plant and a higher incidence of seasonal power outages, which impacted smelter operations during the quarter.

A total of 219,252 tonnes of complex concentrate was smelted during 2017, which was 9% or 18,980 tonnes higher than 2016 due primarily to a continued focus on operational excellence, increased availability of Tsumeb’s main plants and the introduction of a matte holding furnace, partially offset by reduced availability of the high pressure oxygen plant.

Deliveries

In the fourth quarter of 2017, payable gold in concentrate sold increased by 31% to 48,906 ounces, payable copper increased by 13% to 10.0 million pounds and payable silver increased by 58% to 59,785 ounces, in each case, relative to the corresponding period in 2016. The increases in payable gold and copper were due primarily to higher production and the timing of concentrate deliveries.

In 2017, payable gold in concentrate sold increased by 23% to 171,969 ounces, payable copper decreased by 5% to 34.4 million pounds and payable silver increased by 14% to 182,721 ounces, in each case, relative to 2016, consistent with underlying production.

Cost Measures

In the fourth quarter of 2017, cost of sales of $68.5 million was comparable to the corresponding period in 2016 due primarily to lower depreciation offset by a weaker U.S. dollar relative to the Euro and higher copper concentrate deliveries. Cost of sales in the fourth quarter of 2017 excluded certain realized gains aggregating $2.0 million (2016 – $1.2 million) on foreign exchange hedges, which were recorded in other expense (income) in the consolidated statements of earnings (loss).

Cost of sales in 2017 of $267.1 million was $9.1 million higher than 2016 due primarily to higher operating expenses at Tsumeb related to higher throughput and electricity, contractor and labour rates, higher cost per tonne copper concentrate sold as a result of lower copper grades and a weaker U.S. dollar relative to the Euro and ZAR, partially offset by lower depreciation. Cost of sales in 2017 excluded certain realized gains aggregating $6.7 million (2016 – $3.7 million) on foreign exchange hedges, which were recorded in other expense (income) in the consolidated statements of earnings (loss).

All-in sustaining cost per ounce of gold(1) in the fourth quarter of 2017 of $802 was $190 higher than the corresponding period in 2016. This increase was due primarily to higher treatment charges and transportation costs for Chelopech, higher allocated general and administrative expenses and a weaker U.S. dollar relative to the Euro, partially offset by higher volumes of payable gold in concentrate sold, and higher by-product credits as a result of higher realized copper prices and higher volumes of payable copper in concentrate sold. The increase in treatment charges was due primarily to increased deliveries of copper concentrate to Tsumeb relative to the corresponding period in 2016 and favourable treatment charge adjustments in the fourth quarter of 2016 relating to provisionally invoiced concentrate sales from prior periods.

All-in sustaining cost per ounce of gold in 2017 of $729 was $18 lower than 2016. This decrease was due primarily to higher volumes of payable gold in concentrate sold, partially offset by higher treatment charges and transportation costs for Chelopech, higher cost per tonne copper concentrate sold as a result of lower copper grades, higher allocated general and administrative expenses and a weaker U.S. dollar relative to the Euro.

Cash cost per tonne of complex concentrate smelted, net of by-product credits(1), during the fourth quarter of 2017 of $406 was 10% or $37 higher than the corresponding period in 2016 due primarily to lower volumes of complex concentrate smelted and higher electricity, contractor and labour rates.

Cash cost per tonne of complex concentrate smelted, net of by-product credits, during 2017 of $458 was 4% or $18 higher than 2016 due primarily to higher electricity, contractor and labour rates, partially offset by higher volumes of complex concentrate smelted and higher by-product credits as a result of increased acid deliveries.

Cash provided from operating activities

Cash provided from operating activities in the fourth quarter of 2017 was $29.1 million compared to $15.7 million in the corresponding period in 2016. This increase was due primarily to a favourable change in non-cash working capital, partially offset by higher general and administrative expenses.

Cash provided from operating activities in 2017 was $109.9 million compared to $84.1 million in 2016. This increase was due primarily to a favourable change in non-cash working capital and improved results from Chelopech and Tsumeb reflecting increased volumes at both operations and higher realized metal prices. These favourable variances were partially offset by the receipt of $50.0 million from the prepaid forward gold sale in 2016.

Cash provided from operating activities, before changes in non-cash working capital(1), during the fourth quarter and twelve months of 2017 was $20.3 million and $89.9 million, respectively, compared to $24.8 million and $122.1 million in the corresponding periods in 2016. The year over year decrease was due solely to the receipt of $50.0 million from the prepaid forward gold sale in 2016 as results from Chelopech and Tsumeb were up from 2016 reflecting increased volumes at both operations and higher realized metal prices.

Free Cash Flow

Free cash flow in the fourth quarter of 2017 was $14.6 million compared to $11.1 million in the corresponding period in 2016. This increase was due primarily to lower term debt repayments following DPM’s decision to prepay the final $8.1 million instalment of its Term Loans in the second quarter of 2017, partially offset by higher general and administrative expenses.

Free cash flow in 2017 was $46.2 million compared to $74.9 million in 2016. This decrease was due solely to the receipt of $50.0 million from the prepaid forward gold sale in 2016 as results from Chelopech and Tsumeb were up from 2016 reflecting increased volumes at both operations and higher realized metal prices.

Capital Expenditures

Capital expenditures during the fourth quarter and twelve months of 2017 were $28.7 million and $96.0 million, respectively, compared to $14.1 million and $50.9 million in the corresponding periods in 2016.

Growth capital expenditures(1) during the fourth quarter and twelve months of 2017 were $24.2 million and $75.2 million, respectively, compared to $9.6 million and $29.6 million in the corresponding periods in 2016. These increases were due primarily to the construction of the Krumovgrad gold project, which started in the fourth quarter of 2016. Sustaining capital expenditures(1) during the fourth quarter and twelve months of 2017 were $4.5 million and $20.8 million, respectively, compared to $4.5 million and $21.3 million in the corresponding periods in 2016.

Exploration

Exploration continues to focus on brownfield exploration at Chelopech and Krumovgrad as well as the advanced Timok gold project in Serbia. At Chelopech, systematic underground drilling of the Southeast Breccia Pipe Zone (“SEBPZ”) is in progress while surface drilling is centered on the Krasta target area located approximately one kilometre northeast of the mine. At both the SEBPZ and the Krasta target area, widely spaced drill holes have found broad zones of high sulphidation epithermal alteration with numerous intervals of weak copper gold mineralization. At Krumovgrad, preparations are underway for drilling at Surnak and Kuklitsa, two target areas within the concession, and on nearby exploration licenses.

At the Timok gold project, Phase 2 drilling around the Korkan West discovery has defined gold mineralization over a strike length of over 200 metres. Mineralized intervals are generally oxidized and are close to surface. Metallurgical test work of oxide and transitional ore from Bigar Hill, Korkan and Korkan West is being conducted at the SGS Lakefield laboratory.

Krumovgrad Project

At Krumovgrad, earthworks relating to the construction of the integrated mine waste facility (“IMWF”) and installation of major equipment foundations continued in the fourth quarter of 2017 and are expected to be completed in the first quarter of 2018. The structural/mechanical/piping contractor mobilized to site during the quarter and commenced with steel erection and equipment installation. The electrical and instrumentation contractor was selected and will mobilize to site in the first quarter of 2018. All major contracts have now been awarded and rates locked in for the balance of the project, with a final estimated cost of $166 million, 7% lower than the original budget of $178 million. As at December 31, 2017, the project was approximately 51% complete and remains on track for first concentrate production in the fourth quarter of 2018.

Acquisition of MineRP

On October 25, 2017, the Company completed the acquisition of MineRP Holdings Proprietary Limited, through MineRP Holdings Inc. (“MineRP”), and combination with its Terrative Digital Solutions Division, creating a technology provider in the mining industry for digital innovation with operations in Canada, South Africa, Australia and Chile. As a result of this transaction, the Company owns a 78% investment in MineRP. Total cash paid by the Company for the acquisition of MineRP was $20.0 million, including $8.1 million that was used to repay all outstanding debt and certain other liabilities. DPM also agreed to provide MineRP with up to $5.0 million of additional financing to support its working capital and growth initiatives, of which $3.0 million has been advanced as at December 31, 2017.

Financial Position

As at December 31, 2017, DPM had cash of $28.8 million, a 10% interest in Sabina valued at $48.4 million and $252.0 million of undrawn capacity under its committed long-term revolving credit facility.

(1) Adjusted net earnings (loss), adjusted basic earnings (loss) per share, adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”), all-in sustaining cost per ounce of gold, cash cost per tonne of complex concentrate smelted, net of by-product credits, cash provided from operating activities, before changes in non-cash working capital, free cash flow, and growth and sustaining capital expenditures have no standardized meaning under International Financial Reporting Standards (“IFRS”). Presenting these measures from period to period helps management and investors evaluate earnings and cash flow trends more readily in comparison with results from prior periods. Refer to the “Non-GAAP Financial Measures” section of the Management’s Discussion and Analysis for the three and twelve months ended December 31, 2017 (the “MD&A”) for further discussion of these items, including reconciliations to IFRS measures.

Key Financial and Operational Highlights

$ millions, except where noted
Ended December 31,
Three Months Twelve Months
2017 2016 2017 2016
Revenue(1) 94.9 82.1 348.7 279.5
Cost of sales(1) 68.5 69.0 267.1 258.0
Impairment charges(1),(5) 115.2 126.3
Earnings (loss) before income taxes(1)   0.2 (106.2 ) 4.8 (146.9 )
Net (loss) earnings attributable to common shareholders(1) (1.4 ) (107.5 ) 0.2 (150.0 )
Basic (loss) earnings per share(1) (0.01 ) (0.67 ) 0.00 (1.00 )
Adjusted EBITDA(1),(2) 21.8 30.2 92.1 73.0
Adjusted net earnings (loss)(1),(2) 3.4 5.7 16.7 (22.4 )
Adjusted basic earnings (loss) per share(1),(2) 0.02 0.04 0.09 (0.15 )
Cash provided from operating activities(1) 29.1 15.7 109.9 84.1
Cash provided from operating activities, before changes in non-cash working capital(1),(2) 20.3 24.8 89.9 122.1
Free cash flow(1),(2) 14.6 11.1 46.2 74.9
Metals contained in copper and pyrite concentrate produced(1):
Gold (ounces)(3) 49,390 43,964 197,684 165,665
Copper (‘000s pounds) 9,451 8,817 35,773 38,459
Silver (ounces) 53,920 51,035 206,767 227,673
Complex concentrate smelted at Tsumeb (tonnes) 58,983 61,270 219,252 200,272
Payable metals in copper and pyrite concentrate sold(1):
Gold (ounces)(4)
48,906 37,259 171,969 139,324
  Copper (‘000s pounds) 9,927 8,786 34,367 36,074
  Silver (ounces) 59,785 37,940 182,721 160,537
All-in sustaining cost per ounce of gold(2) 802 612 729 747
Cash cost per tonne of complex concentrate smelted at Tsumeb, net of by-product credits(2) 406 369 458 440
(1) Information relates to continuing operations and excludes results from Kapan, which was sold in April 2016.
(2)  Adjusted EBITDA; adjusted net earnings (loss); adjusted basic earnings (loss) per share; cash provided from operating activities, before changes in non-cash working capital; free cash flow; all-in sustaining cost per ounce of gold; and cash cost per tonne of complex concentrate smelted, net of by-product credits are not defined measures under IFRS. Refer to the “Non-GAAP Financial Measures” section of the MD&A for reconciliations to IFRS measures.
(3) Includes gold contained in pyrite concentrate produced in the fourth quarter and twelve months of 2017 of 12,938 ounces and 56,449 ounces, respectively, compared to 12,387 ounces and 47,237 ounces for the corresponding periods in 2016.
(4) Includes payable gold in pyrite concentrate sold in the fourth quarter and twelve months of 2017 of 10,783 ounces and 35,714 ounces, respectively, compared to 8,140 ounces and 31,380 ounces for the corresponding periods in 2016.
(5) Impairment charges in the fourth quarter and twelve months of 2016 included $107.0 million related to the write-down of Tsumeb’s carrying value to its net recoverable amount. Further details can be found in the MD&A under the section “Review of Consolidated Results”. 

DPM’s audited consolidated financial statements for the years ended December 31, 2017 and 2016 and MD&A for the three and twelve months ended December 31, 2017, are posted on the Company’s website at www.dundeeprecious.com and have been filed on SEDAR at www.sedar.com.

2018 Guidance

Overall Outlook and Strategy

For 2018, DPM will continue to focus on increasing the profitability of its business by optimizing existing assets, achieving first gold production in the fourth quarter at the Krumovgrad gold project, which is expected to generate significant growth in gold production and cash flows, and maintaining its balance sheet strength. DPM is also pursuing growth opportunities within its existing portfolio of assets through exploration programs in Bulgaria, near Chelopech and Krumovgrad, and in Serbia, near the Timok gold project as well as through disciplined identification of investments in potential new opportunities.

The Company’s guidance for 2018 is set out in the following table:

$ millions, unless otherwise indicated Chelopech Tsumeb Consolidated
Ore milled (‘000s tonnes) 2,100 – 2,200 2,100 – 2,200
Cash cost per tonne of ore processed(3),(4) 37 – 40 37 – 40
Metals contained in concentrate produced(1),(2)
  Gold (‘000s ounces) 165 – 195 165 – 195
  Copper (million pounds) 33.7 – 40.4 33.7 – 40.4
Payable metals in concentrate sold(1)
  Gold (‘000s ounces) 140 – 170 140 – 170
  Copper (million pounds) 31.0 – 37.0 31.0 – 37.0
All-in sustaining cost per ounce of gold(3),(4),(5) 640 – 855
Complex concentrate smelted (‘000s tonnes) 220 – 250 220 – 250
Cash cost per tonne of complex concentrate
smelted, net of by-product credits(3),(4)
440 – 500 440 – 500
Corporate general and administrative expenses(3),(6) 20 – 24
Exploration expenses(3) 10 – 15
Sustaining capital expenditures(3),(4) 17 – 21 12 – 18 29 – 39
(1) Gold produced includes gold in pyrite concentrate produced of 47,000 to 55,000 ounces and payable gold sold includes payable gold in pyrite concentrate sold of 30,000 to 35,000 ounces.
(2) Metals contained in concentrate produced are prior to deductions associated with smelter terms.
(3) Based on Euro/US$ exchange rate of 1.23, US$/ZAR exchange rate of 12.75 and copper price of $2.75 per pound, where applicable.
(4) Cash cost per tonne of ore processed, all-in sustaining cost per ounce of gold and cash cost per tonne of complex concentrate smelted, net of by-product credits, and sustaining capital expenditures have no standardized meaning under IFRS. Refer to the “Non-GAAP Financial Measures” section of the MD&A for reconciliations to IFRS.
(5) Includes the treatment charges, transportation and other selling costs related to the sale of pyrite concentrate, and payable gold in pyrite concentrate sold. All-in sustaining cost per ounce of gold, excluding payable gold in pyrite concentrate sold and related costs, is expected to be between $630 and $870 in 2018.
(6)  Excludes mark-to-market adjustments on share-based compensation and MineRP’s general and administrative expenses.

The 2018 guidance provided above is not expected to occur evenly throughout the year. The estimated metals contained in concentrate produced, payable metals in concentrate sold and volumes of complex concentrate smelted are expected to vary from quarter to quarter depending on the areas being mined, the timing of concentrate deliveries and planned outages. The rate of capital expenditures is also expected to vary from quarter to quarter based on the schedule for, and execution of, each capital project.   

Chelopech

Gold contained in concentrate produced is expected to be between 165,000 and 195,000 ounces in 2018, slightly below our record production in 2017. This is largely due to higher than anticipated grades in 2017, and grades returning to expected life of mine levels in 2018. Gold production in the first half of 2018 is expected to be higher than the second half based on the existing mine plans at Chelopech. DPM is advancing initiatives to further increase stope intensity and cycle time to optimize production and costs. Mine planning will see a significant change in 2018 as MineRP software is implemented and optimized. DPM is also continuing its process plant optimization program designed to improve processes, consumables consumption and metal recoveries.

Sustaining capital expenditures for Chelopech are expected to be higher than in recent years reflecting approximately $9 million for the elevation of its tailings management facility. This work is expected to be completed in 2019 at a total cost of approximately $12 million.

Tsumeb

Complex concentrate smelted in 2018 is expected to be between 220,000 and 250,000 tonnes, an increase of up to 14% over 2017 production levels as the Company continues to optimize and ramp-up the facility. A key focus in 2018 will be on achieving increased availability of the oxygen and power plants and a decrease in secondary levels. Volumes of complex concentrate smelted in the first half of 2018 are expected to be lower than the second half due to the timing of the annual maintenance shutdown, which is currently expected to take place during the first half of 2018. Tsumeb is also implementing several initiatives targeting unit cost reductions and productivity improvements.

The Company continues to advance its permitting and commercial discussions in connection with the installation of a rotary holding furnace, which would increase capacity up to 370,000 tonnes. The timing of this expansion is subject to timing of anticipated new complex concentrate coming on the market and adequate commercial arrangements being in place to support this expansion.

Krumovgrad

Key milestones at the Krumovgrad gold project in 2018 include the completion of the IMWF earthworks, mechanical, structural, electrical and instrumentation installation and pre-stripping of the mine. Cold and hot commissioning are on track for the second and third quarters, respectively, followed by first concentrate production and commencement of the ramp-up to full design capacity in the fourth quarter. In addition to the above noted milestones, DPM is focused on operational readiness and deploying its shared services model to maximize the synergies with Chelopech. Fourth quarter gold production of approximately 3,000 ounces is expected to occur prior to declaring commercial production, anticipated to occur on or about January 1, 2019, and, as a result, is excluded from the above 2018 guidance.

As at December 31, 2017, approximately $79 million has been incurred and with an additional $83 million to $89 million forecast for 2018, the aggregate cost of the project is expected to be between $162 million and $168 million, compared to the original estimate of $178 million.

Serbia

Following the discovery of the Korkan West deposit in 2017, DPM will continue to advance exploration of this area in 2018 with the goal of adding more ounces to the existing Timok gold resource. DPM is also conducting metallurgical testing to determine if an improved flowsheet can be developed. If successful, this is expected to lead to an internal scoping study in 2018 followed by a revised preliminary economic assessment.

MineRP

DPM does not anticipate a material contribution to earnings from MineRP in 2018 given that it is still in a ramp-up phase. DPM also does not anticipate providing additional funding beyond the $2 million remaining undrawn from the $5 million working capital facility provided following the acquisition.

Growth capital

The Company’s total growth capital expenditures are expected to range between $92 million and $100 million, which primarily relate to the completion of the Krumovgrad gold project. The balance of $9 million to $11 million of additional growth capital includes $2 million of resource development drilling at Chelopech, as well as $7 million to $9 million of margin improvement projects at Chelopech and Tsumeb.

Growth and Exploration

Given DPM’s strong financial position and expected surplus cash flow generation commencing in 2019, DPM is strongly positioned to grow the business beyond its existing operating and development assets and is actively identifying opportunities to grow its business in a disciplined manner.

The exploration budget for 2018 increased to approximately $14 million from $9 million in 2017. The increased budget will fund major drilling programs at Chelopech, consisting of 10,000 metres of underground drilling on the SEBPZ and 5,000 metres of surface drilling on the Krasta target, to follow up on 2017 drilling. Drill programs at Krumovgrad include grid drilling at Surnak and Kuklitsa that are within the concession and scout drilling on nearby exploration licenses. A further 11,500 metres is planned for exploration and resource drilling at the Timok gold project in Serbia. The remaining exploration budget will be deployed primarily to other greenfield projects in Bulgaria, Serbia and the Malartic project in Quebec.

Qualified Person

The technical information in this press release, with respect to the Company’s material mineral projects, has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) of the Canadian Securities Administrators and the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral Resources and Mineral Reserves, and has been reviewed and approved by Richard Gosse, M.Sc. (Mineral Exploration), Senior Vice President, Exploration of DPM, who is a Qualified Person as defined under NI 43-101, and not independent of the Company.

2017 Fourth Quarter and Annual Results and 2018 Guidance Call and Webcast

The Company will hold a call and webcast to discuss its 2017 fourth quarter and annual results and its 2018 guidance on Friday, February 16, 2018 at 9:00 a.m. (E.S.T.). The call will be hosted by Rick Howes, President and Chief Executive Officer, who will be joined by Hume Kyle, Executive Vice President and Chief Financial Officer, together with other members of the executive management team. The call will be accessible via a live webcast and by telephone.

2017 Fourth Quarter and Annual Results and 2018 Guidance Call and Webcast (Listen/View only)

Date: Friday, February 16, 2017
Time: 9:00 am EST
Webcast: https://edge.media-server.com/m6/p/3zjeoax2
Canada and USA Toll Free: 1-844-264-2104
Outside Canada or USA: 1-270-823-1169
Replay: 1-855-859-2056
Replay Passcode: 3669639

About Dundee Precious Metals

Dundee Precious Metals Inc. is a Canadian based, international gold mining company engaged in the acquisition of mineral properties, exploration, development, mining and processing of precious metals. The Company’s operating assets include the Chelopech operation, which produces a copper concentrate containing gold and silver and a pyrite concentrate containing gold, located east of Sofia, Bulgaria; and the Tsumeb smelter, a complex copper concentrate processing facility located in Namibia. DPM also holds interests in a number of developing gold and exploration properties located in Bulgaria, including the Krumovgrad gold project, which started construction in the fourth quarter of 2016 and is expected to commence production in the fourth quarter of 2018, Canada, Serbia and Armenia, and its 10.2% interest in Sabina Gold & Silver Corp.

Cautionary Note Regarding Forward Looking Statements

This press release contains “forward looking statements” that involve a number of risks and uncertainties. Forward looking statements include, but are not limited to, statements with respect to the estimated capital costs, operating costs and other project economics with respect to Krumovgrad; timing of development, permitting, construction, commissioning activities and commencement of production in respect of Krumovgrad; timing of further optimization work at Tsumeb and potential benefits of the rotary furnace installation; price of gold, copper, silver and acid; toll rates; metals exposure and stockpile interest deductions; potential financial benefits from its investment in MineRP; the estimation of Mineral Reserves and Mineral Resources and the realization of such mineral estimates; timing and amount of estimated future production and output, life of mine, costs of production, cash costs and other cost measures, capital expenditures, and timing of the development of new deposits; results of economic studies; success of exploration activities; success of permitting activities; permitting time lines; currency fluctuations; requirements for additional capital; government regulation of mining and smelting operations; environmental risks; reclamation expenses; potential or anticipated outcome of title disputes or claims; and timing and possible outcome of pending litigation. Often, but not always, forward looking statements can be identified by the use of words such as “plans”, “expects”, or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “outlook”, “intends”, “anticipates”, or “does not anticipate”, or “believes”, or variations of such words and phrases or that state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward looking statements are based on the opinions and estimates of management as of the date such statements are made and they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any other future results, performance or achievements expressed or implied by the forward looking statements. Such factors include, among others: the uncertainties with respect to the actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations and economic studies; changes in project parameters as plans continue to be refined; possible variations in ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; uncertainties inherent with conducting business in foreign jurisdictions where corruption, civil unrest, political instability and uncertainties with the rule of law may impact the Company’s activities; fluctuations in metal and acid prices, toll rates and foreign exchange rates; unanticipated title disputes; claims or litigation; limitation on insurance coverage; cyber-attacks; failure to realize projected financial results from MineRP; risks relating to operating a technology business reliant on the ownership, protection and ongoing development of key intellectual properties; as well as those risk factors discussed or referred to in the Company’s MD&A under the heading “Risks and Uncertainties” and under the heading “Cautionary Note Regarding Forward Looking Statements” which include further details on material assumptions used to develop such forward looking statements and material risk factors that could cause actual results to differ materially from forward looking statements, and other documents (including without limitation the Company’s most recent Annual Information Form) filed from time to time with the securities regulatory authorities in all provinces and territories of Canada and available on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended.  There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Unless required by securities laws, the Company undertakes no obligation to update forward looking statements if circumstances or management’s estimates or opinions should change. Accordingly, readers are cautioned not to place undue reliance on forward looking statements.

For further information please contact:

DUNDEE PRECIOUS METALS INC.

Rick Howes
President and Chief Executive Officer
Tel: (416) 365-2836
rhowes@dundeeprecious.com

Hume Kyle
Executive Vice President and Chief Financial Officer
Tel: (416) 365-5091
hkyle@dundeeprecious.com

Janet Reid
Manager, Investor Relations
Tel: (416) 365-2549
jreid@dundeeprecious.com

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