Dundee Precious Metals Receives First Contact from Namibian Government on Tsumeb Smelter Audit
April 30 2012 - 8:10AM
Marketwired
Dundee Precious Metals Inc. (TSX:DPM)(TSX:DPM.WT)(TSX:DPM.WT.A)
("DPM" or the "Company") has announced that, following completion
of the government's report on the environmental, health and safety
audit (the "Report") it commissioned, the Namibian Minister of
Environment and Tourism ("MET") has issued a letter to the Company
relating to the operation of its Tsumeb smelter, owned and operated
by its subsidiary, Namibia Custom Smelters (Pty) Limited ("NCS").
The Company has not yet had an opportunity to review the Report or
discuss the findings with the MET.
Effective May 1, 2012, the MET has instructed NCS to reduce feed
to the smelter by approximately half until the projects designed to
capture fugitive emissions have been completed. These projects,
which form part of NCS' Project 2012 currently underway, will be
completed in the second half of the year. The Company is seeking
further clarification on the levels the government has outlined,
following which it will develop a plan to manage production and
related emissions that will have the least impact on the Company
and the community during this period. In the interim, NCS will work
to bring forward the particular components of Project 2012 that
specifically address fugitive emissions and also proceed with its
scheduled one-month shutdown of the ausmelt furnace in mid-May for
annual re-bricking.
In addition, the Minister has advised NCS to advance the
installation of the sulphuric acid plant from 2014 to 2013. On its
own initiative, NCS has started work on expediting the acid plant
and determined that the fastest schedule possible, from the start
of engineering to construction completion, is 26 months. The
Company is currently contacting the MET to develop a mutually
acceptable schedule within which to complete the plant.
The Minister's letter also contains additional instructions with
respect to the occupational health of its workers and the
environment which will be addressed in the coming months.
"The health of our workers and care for the environment are
extremely important to us as evidenced by the strong relationship
we have built with our employees and their representatives. We have
spent over US$40 million on the smelter in the two years we have
owned it and are aware of the challenges that continue to exist
there," said Jonathan Goodman, President and CEO of DPM. "We are
pleased to see the government's endorsement of our plan to address
the remaining issues and look forward to working with them to bring
the smelter up to global environmental standards."
Further information will be provided as soon as it is
available.
Dundee Precious Metals Inc. is a well-financed, Canadian based,
international gold mining company engaged in the acquisition,
exploration, development, mining and processing of precious metals.
The Company's principal operating assets include the Chelopech
operation, which produces a gold, copper and silver concentrate,
located east of Sofia, Bulgaria; the Kapan operation, which
produces gold, copper, zinc and silver concentrate, located in
southern Armenia; and the Tsumeb smelter, a concentrate processing
facility located in Namibia. DPM also holds interests in a number
of developing gold properties located in Bulgaria, Serbia, and
northern Canada, including interests held through its 51.4% owned
subsidiary, Avala Resources Ltd., its 47.3% interest in Dunav
Resources Ltd. and its 11.5% interest in Sabina Gold & Silver
Corp.
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.
Contacts: Dundee Precious Metals Inc. Jonathan Goodman President
& Chief Executive Officer (416)
365-2408jgoodman@dundeeprecious.com Dundee Precious Metals Inc.
Lori Beak Senior Vice President, Investor & Regulatory Affairs
and Corporate Secretary (416) 365-5165lbeak@dundeeprecious.com
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