CHELOPECH MINE BULGARIA March 2017 | Chelopech Forward looking - - PowerPoint PPT Presentation

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CHELOPECH MINE BULGARIA March 2017 | Chelopech Forward looking - - PowerPoint PPT Presentation

GENERAL PRESENTATION CHELOPECH MINE BULGARIA March 2017 | Chelopech Forward looking statements This presentation contains forward -looking information or "forward-looking statements" that involve a number of risks and


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March 2017 | Chelopech

GENERAL PRESENTATION CHELOPECH MINE BULGARIA

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Forward looking statements

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This presentation contains “forward-looking information” or "forward-looking statements" that involve a number of risks and uncertainties. Forward-looking information and forward-looking statements include, but are not limited to, statements with respect to the future prices of gold and other metals, the estimation of mineral reserves and resources, the realization of mineral estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage 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”, “intends”, “anticipates”, or “does not anticipate”, or “believes”, or variations of such words and phrases or 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 actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold; 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, fluctuations in metal prices, as well as those risk factors discussed or referred to in this news release under and in the Company’s annual information form under the heading "Risk Factors" and other documents filed from time to time with the securities regulatory authorities in all provinces and territories

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Canada and available 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. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements.
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Mission and vision

Mission: We structure and finance, explore, develop and operate our mining assets. We deliver excellence in sustainability and return value to all our stakeholders. Vision: A growing precious metals focused mining company that develops great assets and people.

Dundee Precious Metals Inc.

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Dundee Precious Metals Chelopech

Our Mission: We are an innovative mining company, producing mineral concentrates. Our Vision: To be a world class company; producing efficiently, reliably and safely, with care for people and the environment

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CHELOPECH MINE BULGARIA Overview

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Safety – four key concepts

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Felt Leadership Zero Tolerance Zero Harm Safe Production

Leading by example, walking the talk, demonstrating care and visibility in the workplace. Not accepting unsafe conditions

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acts. No exceptions to following legislation and company policies, rules and procedures. Enforcing the rules. Preventing accidents, incidents, property damage and loss to people and to the business. One without the other is not a viable or successful business.

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Safety model

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Line Ownership Employee Involvement Comprehensive Safety Systems Regular Auditing

  • f Safety

Systems Leadership Safe Employee Behaviors Safe Equipment & Workplace Safe Results

Leadership is the most important part and drives the rest.

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OHS statistics Q4 2016

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29 25 20 9 5 4 1 2 2 1 3 4 7 11 8 5 7 1 3 2 1 1 0,00 0,096 1,19 0,00 0,48 0,0 0,5 1,0 1,5 2,0 2,5 3,0 5 10 15 20 25 30 35

2011 2012 2013 2014 2015 2016 Q2' 15 Q3' 15 Q4' 15 Q1' 16 Q2' 16 Q3' 16 Q4' 16 2016 YTD

LTI (FR) and TRI (FR) number of LTIs / MTIs MTIs LTIs LTIs (FR) TRIs (FR)

Benchmark: Canada, per 200,000 man hours (Ontario all mines: 0.9)

Year Number of personnel 2011 1 052 2012 1 008 2013 951 2014 938 2015 979 2016 914

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Golden rules

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Kachulka dam Chavdar village Chelopech village North site South site Road to Sofia Rail way

CHELOPECH MINE

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N W E S

Tailings management facility

  • The Mining License covers an area
  • f 266 hectares and includes the

DPM Chelopech operation and its immediate surroundings.

  • The Company owns the land upon

which the facilities are constructed.

  • The operation was acquired by

Dundee Precious Metals in 2003.

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Chelopech mine overview

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405

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Chelopech long section

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Zapad shaft Kapitalna shaft Iztok shaft Sever shaft

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Chelopech gold/copper mine

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The mine produces approximately 120,000 ounces of gold and 18,000 tonnes of copper per annum in a high arsenic concentrate grading approximately 16.5% copper and approximately 30 g/t gold. Following commissioning of the pyrite recovery circuit in March 2014 the operation produces pyrite concentrate grading approximately 6.5 g/t gold – approximately 50,000 ounces of gold. Since acquisition mine and mill production increased almost 4 times to 2,200,000 tones per year.

500000 1000000 1500000 2000000 2500000 624,310 911,179 920,150 906,070 911,381 980,928 1,000,781 1,353,733 1,819,687 2,032,002 2,076,112 2,052,138 2,212,340 tons

Ore processed

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Mine expansion

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  • Installation
  • f

an underground crushing/ore handling system

  • Upgrade
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the mine ventilation system to allow for increased utilization of mobile equipment

  • Upgrades

to Process Plant installation

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SAG mill, additional flotation capacity, upgrade of tailings facility and water recovery

  • Construction of Paste Fill Plant and

underground reticulation system

  • Run-of-Mine

pad crushed

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stockpile and mill feed system

Upgrades to existing site infrastructure and process facilities to meet the increased production targets of 2 mtpa, broadly defined by:

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Production capacity enhancements

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  • Mining Method 2004 -2005
  • Nadejda Decline 2007
  • Paste fill plant 2010
  • SAG mill and upgraded flotation 2011
  • Sever fan installation 2011
  • Vyara decline - 2011
  • Filter press 2011
  • U/g crusher and conveyors 2012
  • Surface stockpile 2012
  • Scats return system 2013
  • Copper circuit SFRs 2013
  • Pyrite Circuit 2014
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TAILINGS MANAGEMENT FACILITY - General View

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Main equipment:

  • main tailings pipe length 2600 m
  • HDPE pipes, Ø 315
  • tailings distribution pipeline

Main embankment

  • combined type embankment
  • currently 70 meters in height (elevation

620) Drainage system

  • drainage gallery
  • old collector
  • seepage pump station

External drainage system

  • two retention walls
  • cut-off drain channel

Control and measuring system

  • 32 pcs. piezometers
  • 33 pcs. control marks (CM)
  • 14 pcs. observation posts (OP)

External Monitoring

  • Annual

Commission according BG regulations(Collaborative protocol with conclusion and recommendation);

  • Quarterly and annual monitoring data report -

international company;

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Dundee Precious Metals - Chelopech. Chelopech Mineral Resource Estimate as at 31st December 2016 Resource Category MTonnes Grades Metal Content Au Ag Cu S As Au Ag Cu (g/t) (g/t) (%) (%) (%) (Moz) (Moz) MLbs Measured 8.8 3.45 9.46 1.13 13.36 0.32 0.972 2.664 218 Indicated 3.9 3.44 9.93 0.97 12.99 0.24 0.428 1.235 83 Total M+I 12.6 3.45 9.61 1.08 13.25 0.29 1.399 3.899 301 Inferred 1.8 2.44 7.46 0.96 10.89 0.12 0.138 0.421 37 Notes: The MRE is reported using a gold equivalent cut-off of 3 g/t and an operating net profit cut-off of >USD 0 Tonnages are rounded to 1,000 tonnes and Metal to 100 tonnes or 100 oz to reflect this as an estimate Metal content is rounded to the nearest 100 tonnes or 100 ozs to reflect this as an estimate Gold equivalent (AuEq) = [Au + Cu*2.06] based on a Cu price of $2.75/lb and Au price of $1250/oz Measured and Indicated Mineral Resources are additional to the Mineral Reserves.

Mineral resources and reserves

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All Mineral Resources and Mineral Reserves Estimates have been determined and reported in accordance with NI 43‐101 and the classification adopted by the CIM

Chelopech Ore Reserves as at 31st December, 2016 Classification Ktonnes Grades Metal Content Au Ag Cu S As Au Ag Cu (g/t) (g/t) (%) (%) (%) (Koz) (Koz) KLbs PROVEN *

11 437 2.92 7.21 0.92 12.96 0.28 1 075 2 652 231 765

PROBABLE

8 364 3.42 6.30 0.90 12.49 0.28 920 1 695 166 244

TOTAL *

19 801 3.13 6.83 0.91 12.76 0.28 1 995 4 347 398 009

*Including Broken Stocks & Stockpiles.

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CHELOPECH MINE BULGARIA Operations

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Chelopech mining methods

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New – Sublevel Longhole Stoping with Fill Old – Sublevel Caving

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Effects of THE new mining method

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5 10 15 20 25 30 35 40 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Losses Dilution Cu Dilution Au

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Modern underground equipment

Mobile equipment:

  • production – 21 units
  • auxiliary – 42 units
  • service – 54 units
  • 4 Production drill rigs
  • 4 Development drill rigs
  • 6 Front-end loaders
  • 7 Dump Trucks

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  • IBM Maximo implemented since January 1,

2012 with 7.5.0.3 version

  • IBM Maximo is integrated with Maximo Mobile,

Sun 6, Algosys, PI Historian, Hermes, Hecpoll, SMS

  • IBM Maximo new version 7.6.0.7 in 2017
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Process plant flowsheet - 2016 onwards

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Process Plant Optimization Program

Results achieved during 2016

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257.9 256.4 273.5 245.0 250.0 255.0 260.0 265.0 270.0 275.0 2014 2015 2016

Tonnes per Running Hour

  • Grinding

20.7 20.9 19.4 18.5 19.0 19.5 20.0 20.5 21.0 21.5 2014 2015 2016

Grinding

  • kwh/t
  • Throughput increase 7%
  • Recovery increase
  • Cu: 0.5-1%
  • Au: 1-2%
  • Cost Savings:
  • Reagents: $400,000/year
  • Specific power consumption reduced by 7%
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Male Female Total

Full-time employees distribution (as of Dec 31, 2016) 83% 17% 100% Full-time employees distribution, excluding underground workers (as of Dec 31, 2016) 69% 31% 100% Percentage of employees that are local nationals (as of Dec 31, 2016) 100% 100% 100% Percentage of employees that are managers and above levels (as of Dec 31, 2016) 1,6% 5,8% 2,4% Percentage of managers and above levels that are local nationals (as of Dec 31, 2016) 100% 100% 100%

DPMC Employees

Voluntary Turnover 2016 – 1,53%; 2015 – 1,63%; 2014 – 1,33%; 2013 – 0,72%.

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Recognitions and care for employees

Care for employees:

  • CLA in place – re-negotiated every two years with the two Union leaders;
  • CLA covers and exceeds the terms and conditions of the Industry CLA and provides

various benefits to employees beyond the statutory requirements. Recognitions:

  • Dundee Precious Metals Chelopech has been chosen as the winner of the 2016 Mining

Magazine Technology award. The awards are held annually to celebrate outstanding new technologies, innovations and initiatives within the mining sector.

  • In 2016 Dundee Precious Metals Bulgaria won the Socrates Award for Best Enterprise

Award and Best Manager of the Year Award.

  • Dundee Precious Metals Bulgaria is a selected finalist in prestigious European Business
  • Awards. The company has been recognized as one of 110 businesses that were

announced as the finalists and Ruban d’Honneur recipients in the 2015/16.

  • Dundee Precious Metals Bulgaria has been acknowledged in 2015 from the Ministry of

Labour and Social Policy as one of the top five companies in Bulgaria which provide equal

  • pportunities

and demonstrate balance between men and women

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management position.

  • Mines and Money forum has acknowledged the Operations Director in Dundee Precious

Krumovgrad as one of 100 most influencing women in mining.

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Shared Services Concept

DPM has several entities in Bulgaria - Chelopech mine is fully operational and Krumovgrad Project is under construction. Shared Services Approach will be implemented for Bulgaria including Finance, Supply, HR, Environmental, Legal and Permitting, Public Relations and Technical Services.

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Purpose Develop and establish shared management team for DPM Bulgaria at the following levels: Directors, Managers and Supervisors and below levels, where possible, to achieve:

  • common governance of the two operations;
  • implementation of consistent work models;
  • ptimize administration costs

Outcome The expected result will be to achieve optimized activities, full utilization of the implemented systems, consistent approach, clear roles and accountabilities, analyzed data and resources.

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Cash cost per tonne of ore processed

26 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 34.9 39.6 46.8 62.1 60.8 56.9 55.3 46.1 40.3 40.1 36.5 32.9 32.9 37.0 44.1 58.6 55.1 52.2 50.5 41.4 36.5 36.6 33.5 30.1

Cash cost US$/tonne

Cash cost per tonne (incl royalty) Cash cost per tonne (excl royalty)

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CHELOPECH MINE BULGARIA Sustainable development

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Environmental Permitting

  • Permits

for water consumption from surface water sources

  • Permit for ground water

consumption from the Chelopech mine

  • Permit

for waste water discharging

  • Permit

for construction waste management

  • TMF

Management Plan and Operational Permit

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Environmental monitoring & Control

  • All environmental components

are monitored – weather conditions, air, water, noise, blast & vibration, soil & vegetation, biodiversity

  • Monitoring

net installed at Chelopech, Chavdar and surroundings

  • Submission
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results to competent authorities and to stakeholders, incl. data, analysis and mitigation measures

  • Regular sites inspections and

audits

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Rehabilitation surface cave 103 (2005 – 2011)

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Rehabilitation stock pile Iztok shaft (2008 – 2012)

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Rehabilitation stock pile Sever shaft (2011 – 2014)

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Rehabilitation waste rock stockpile Zapad shaft (2012 – 2016)

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Optimized water management

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Water stilling End of cut-off canal Retention dam part of the cut-off canal Bio blanket – erosion protection on the slopes Eastern retention dam Western retention dam Saddle dam

  • Upgrade of external dewatering system
  • Construction of protection embankments in low point around impoundment area
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Grout curtain project

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  • Mitigating measures for effluent

(subsurface flow) from the TMF

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TMF Field tests

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  • Planting

and cultivation

  • f

essential oil crops for biological rehabilitation of TMF Chelopech

  • Analyses of crops
  • Scientific work together with the

Forestry University

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Green projects for site improvement

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Financial provisions for mine closure

  • Closure bond secured and submitted to government authorities in Q4

2010 (for USD 25 million)

  • The instrument was changed from an insurance policy to a bank

guarantee that is subject to an annual extension

  • In December 2015 competent authorities approved an updated

Closure and Rehabilitation Plan

  • The bank guarantee currently with value of 13,949,832 Euro expires in

November 15, 2017

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Construction of waste water treatment plant

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  • The plant will be located in the southern part of the Company in area of

300 m2;

  • Completed earthworks and civil works are ongoing;
  • Fabrication of modular plant is ongoing;
  • Modular plant only for DPM Chelopech.
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Stakeholder engagement

Engaging local communities in joint events builds trust by furthering relationships and involvement.

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Opening the doors

Every year the Open doors day welcomes over 130 people, including children of employees.

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Community investments

  • Community Investment Development Plan 2020
  • Annual investment programme for Chelopech, Chavdar, Zlatitsa

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Community investments

Education

  • Support for Chelopech and Chavdar

schools – Teach for Bulgaria

  • Chelopech Private English Language

Secondary School

  • Apprenticeship programme and Summer

Interns programme

  • University of Mining and Geology

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Community investments

Sport

  • Karate sports club – national and international champions from

Chelopech

  • Eurythmic gymnastics for the kindergarten and the school
  • Support for national sports and arts initiatives – Team of Hope

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We succeed because we care

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CHELOPECH MINE BULGARIA Operations management model

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The Management Operating Model

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Work Management Labour, Materials & Equipment Set Asset Performance Targets Set Production Plan Set Service Strategy Set Budget Approve Work/ Cost Commitments Plan Work Schedule Work Execute Work Asset Performance Measure Work Performance Measure Asset Performance Measure Costs Analyse and Improve Acquire/ Replace/ Modify/Remove Asset Set Sustainability Expectations Measure Social Process Performance Set Operating Master Schedule

Work Management (FLPS) Analyze & Improve Integrated Planning

Set Sustainability Expectations

Central Monitoring and Control

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Planning cycle

Front Line Execution Driven by Fully Integrated Mine Plans

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Mining Operations Management

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Mining Planning & Scheduling Maintenance Planning & Scheduling Supply chain / Logistics Planning & Scheduling Planning Information Feedback Information Mining Execution Business Processes

Support & Maintenance Processes Drilling Loading Transportation Crushing Conveying

Real time Process Monitoring and Control Mining Operations Management System

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Analyze & Improve

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Produce Stability Red educ uce e Varia ariation tion

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Upper Levels Resource Development Drilling Program

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New High Grade Copper-Gold Zone 153

  • Discovered December 2016
  • located east from Block 150, 250m above

Block 152

  • Mineralization is hosted in breccia and is

characterized by typical epithermal, high- sulphidation alteration

Drilling program continue from 505 Level - historical

  • ld haulage level

Level 505

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Thank you for your attention!

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