Dundee Precious Metals Inc. (TSX: DPM) ("DPM" or "the Company") has discovered a new zone of high grade copper and gold mineralization at its Chelopech mine in Bulgaria. The new zone, called Zone 153, is located near existing infrastructure in the upper levels of the mine's Western Area. This zone was discovered as part of the ongoing 'Upper Levels' resource development drill program.
Assays from the first two drill holes in Zone 153 include the following significant intercepts:
- 84.0 metres at 13.58 g/t Au and 2.87% Cu from drill hole EXT150_440_06, including 46.5m at 22.09 g/t Au and 4.26% Cu.
- 16.8 metres at 6.60 g/t Au and 1.86% Cu from drill hole EXT150_440_02, including 6.7m at 13.50 g/t Au and 3.73 % Cu.
True widths are interpreted to be 70% to 85% of intercept lengths. Details are shown in Table 1. Assay results from two other drill holes, EXT150_440_07 and EXT150_440_08, drilled along strike and down dip of hole EXT150_440_06, respectively, are expected during the first week of January 2017.
"We are pleased to announce the discovery of a new high grade zone at Chelopech. This is significant because of the potential to add high grade resources accessible near our existing development," said Rick Howes, President and CEO. "Further work will be required to determine the full extent of this new zone and to assess the impact it will have on the Chelopech life of mine plan. This discovery illustrates the continued success of our in-mine exploration program and the potential that still exists to enhance and extend the life of the Chelopech mine."
Newly discovered Zone 153
Zone 153 is located approximately 150m east of Block 150, 170m north of Block 103 and 250m above Block 152 (see Figures 1 to 3). The zone is open to the northeast, above and for approximately 100m below the 440 level. It is hosted within a broad silica-envelope alteration zone, defined between the 230 and 560 levels which is considered to have high potential for hosting further mineralization.
Zone 153 represents a Cu-Au±Ag high sulphidation type of epithermal mineralization, comprising semi-massive to massive stockwork vein and hydrothermal breccia zones of chalcopyrite, Cu-As-Sb sulfosalts (enargite, tennantite and tetrahedrite) and gold-rich pyrite that is typical of mineralization in the upper levels at Chelopech. The mineralization in Zone 153 is hosted by a breccia which is interpreted to be diatreme-related and may be the upper continuation of the gold-rich Block 152.
Table 1. Significant intercepts are from the 'Zone 153' discovery holes and are reported at a gold equivalent ("AuEq") cut-off grade of 3g/t.
| HOLE ID | EAST | NORTH | RL | AZ | DIP | FROM | TO | Est. True Width (m) | Au (g/t) | Cu (%) | AuEq (g/t) | ||||||||
| EXT150_440_02 | 5762 | 29211.8 | 442 | 359.2 | 0.9 | 159.0 | 175.8 | 13.5 | 6.60 | 1.86 | 10.44 | ||||||||
| Including | 159.0 | 165.7 | 5.4 | 13.50 | 3.73 | 21.19 | |||||||||||||
| EXT150_440_02 | 5762 | 29211.8 | 442 | 359.2 | 0.9 | 192.0 | 210.0 | 14.8 | 2.01 | 0.51 | 3.05 | ||||||||
| EXT150_440_06 | 5762 | 29211.9 | 442 | 6.6 | -0.5 | 150.0 | 234.0 | 62.5 | 13.58 | 2.87 | 19.49 | ||||||||
| Including | 180.0 | 226.5 | 34.6 | 22.09 | 4.26 | 30.86 |
| 1. | AuEq calculation is based on the following formula: Au g/t + 2.06xCu%. |
| 2. | Significant intercepts have been calculated with a maximum internal dilution of 4.5 metres. |
| 3. | All holes reported are drilled with NQ diamond core. |
| 4. | Coordinates are in mine-grid. |
| 5. | No upper cuts applied. |
Upper Levels Resource Development Drilling Program
DPM initiated the 'Upper Levels' resource development drilling program in mid-2015, to delineate and upgrade resources in proximity to the historically mined areas within the Chelopech mine, above the 390 level. The grades from material in this section of the mine are typically higher grade and are relatively more copper-rich than the average resource grade and were identified as an attractive target for drilling.
The discovery of Zone 153 is the result of drilling on the 440 level that is targeting mineralization outside of the current Chelopech Mineral Resource inventory. Zone 153 was missed by historical exploration drill holes that were mostly vertical and drilled on a 100m x 100m grid. In addition sampling data from a historic development, located 40m below the Zone 153 intercepts, has never been located. As a consequence, Zone 153 trend remains largely untested.
Currently, an initial drilling program has been completed in the Zone 153 area on a 40m x 40m spacing and with limited closer spaced holes, on the eastern flank at a 25m x 25m spacing. Mineralization was observed in drill hole EXT150_440_08 between 162.0m and 183.0m while drill hole EXT150_440_07 is currently in progress and has not reached the interpreted outline of Zone 153. Assays are pending for these two holes.
The Company has immediate plans to continue in-fill drilling from the same drilling location during Q1 2017 and starting in Q2 2017, to test higher elevations of Zone 153 using a second drill rig located on the 505 level. In total, 6000m of drilling has been budgeted to achieve this goal.
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 continuing 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, Serbia, and northern Canada, including the permitted-for-construction Krumovgrad gold project, which is expected to commence production in the fourth quarter of 2018, and its 10.7% interest in Sabina Gold & Silver Corp.
Source: Dundee Precious Metals
