Dundee Precious Metals Announces the Restart of its Armenian Gold-Silver-Copper-Zinc Operations
March 31 2009 - 7:50PM
Marketwired
Dundee Precious Metals Inc. (TSX: DPM)(TSX: DPM.WT)(TSX: DPM.WT.A)
("DPM" or the "Company") is pleased to announce the recommencement
of operations at its gold-silver-copper-zinc facility in Kapan,
Armenia.
In response to the very positive regulatory and operational
advances made by Deno Gold Mining Company CJSC in the period
leading up to and the five month period (ended March 2009) during
which it was on temporary care and maintenance, DPM has elected to
restart operations at its Armenian facilities.
"The strength of leadership and depth of experience at Deno Gold
have been evident over the last five months and were a contributing
factor in the decision to restart operations", said Jonathan
Goodman, President and CEO.
Advances made by Deno Gold include (i) the finalization of its
agreement with the Armenian government on the extension of its
Shahumyan mine license and other critical aspects of its License
Agreement, (ii) increased mine productivity and associated
economies of scale related to improved mining methodology, (iii)
higher ore grades alongside improved dilution control, (iv)
improved metal recovery rates, and (v) lower unit operating costs
(in part, due to the devaluation of the Armenian Dram).
Mining operations will recommence on April 1, 2009 at an
annualized rate of 360,000 tonnes of ore, with the balance of the
facilities to follow shortly thereafter. At current metal prices,
Deno Gold is still expected to incur a financial loss on its
operations however, the benefits of a restart, including the
minimization of losses, significantly outweigh the costs of
maintaining the operation on temporary care and maintenance.
FORWARD LOOKING STATEMENTS
This news release may contain certain information that
constitutes forward-looking statements. Forward-looking statements
are frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate" and other similar
words, or statements that certain events or conditions "may" or
"will" occur. Forward-looking statements are based on the opinions
and estimates of management at the date the statements are made,
and are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
These factors include the inherent risks involved in the
exploration and development of mineral properties, the
uncertainties involved in interpreting drilling results and other
geological data, fluctuating metal prices and other factors
described above and in the Company's most recent annual information
form under the heading "Risk Factors" which has been filed
electronically by means of the Canadian Securities Administrators'
website located at www.sedar.com. The Company disclaims any
obligation to update or revise any forward-looking statements if
circumstances or management's estimates or opinions should change.
The reader is cautioned not to place undue reliance on
forward-looking statements.
Dundee Precious Metals Inc. is a Canadian based, international
mining company engaged in the acquisition, exploration, development
and mining of precious metals. DPM owns the Chelopech Mine, a
producing gold/copper mine, and the Krumovgrad Gold Project, a
mining development project, both located in Bulgaria, and is
engaged in mineral exploration activities in Serbia. In addition,
Dundee Precious owns the Back River gold exploration project in
Nunavut, Canada and a 95% interest in the Kapan Mine in
Armenia.
Contacts: Dundee Precious Metals Inc. Jonathan Goodman President
& Chief Executive Officer (416) 365-2408
jgoodman@dundeeprecious.com Dundee Precious Metals Inc. Lori Beak
Vice President, Investor Relations and Corporate Secretary (416)
365-5165 lbeak@dundeeprecious.com
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