Chelopech Mining EAD General Overview Presentation November 2010 - - PowerPoint PPT Presentation

www.dundeeprecious.com Chelopech Mining EAD General Overview Presentation

November 2010

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Contents

1. Overview 2. Mine 3. Mill 4. TMF 5. Environment and Sustainable Development 6. Exploration 7. Summary

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

• n 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 of 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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www.dundeeprecious.com Overview Chelopech Mining EAD

November 2010

Mission and Vision

Dundee Precious Metals Inc.

• 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

Chelopech

• Our Mission: We produce copper and gold for the world market in a

cost effective, safe and environmentally responsible manner.

• Our Vision: To be the most efficient mining, exploration and processing
• peration in Europe.

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5

Core Values

Dignity and Respect

We care about people – their well being, their careers and development, and their day-to-day work experience. We treat people fairly. We listen to their input and work with them to create solutions that respect both individual needs and corporate interests

Transparency

We set and uphold the highest ethical standards and business practices. Our dealings with employees, governments, stakeholders and communities are

• pen, honest and transparent. We do what we say

we will do and fulfil our commitments. We hold each

• ther accountable for delivering results

Environmental Responsibility

We are leaders in promoting sustainable growth and environmental responsibility. We go beyond legislative compliance to promote pragmatic environmental solutions and practices in all of our

• perations.

Community Investment

We care about the quality of the communities in which we operate. Our legacy is to ensure that we make the community a better place than before we arrived on the scene. We have a strong corporate and social responsibility to the communities in which we invest.

Continuous Improvement

We are passionate about getting results through continuous improvement. We seek out and execute operational practices that drive profitable growth, innovation, speed to market, cost efficiency, technical and professional excellence, corporate social responsibility and people

Safety

The health and safety of our employees and local communities is paramount, and enables us to be in

• business. Safety must remain everyone’s number
• ne priority.

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Leadership Model

Personal Integrity & Transparency Emotional Intelligence Business Acumen Innovative Solutions Gets Results Team Leader Talent Developer & Coach Cross-Cultural Astuteness

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DPM locations

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Chelopech Location

Chelopech

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

N W E S

Chelopech Site

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Road to Sofia

N W E S

Kachulka dam Chelopech village North site South site Rail way

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Road to Sofia North site South site Rail way

N W E S

Chelopech Site

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• The Chelopech mineral deposit lies in the northern part of the

Panagyurishte mining district where a number of copper-bearing massive sulphide and porphyry copper deposits exist.

• The Company acquired its mining rights (i.e. Mining License) under

a Concession Agreement with the Bulgarian Government , signed in 1999 for a period of 30 years.

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

area of the Chelopech mining operation and its immediate

• surroundings. The Company owns the land upon which the facilities

are constructed.

• The mine has operated since the early 1950’s.
• The operation was acquired by Dundee Precious Metals in 2003.

Chelopech Gold/Copper Mine

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Chelopech Gold/Copper Mine

• The mine currently produces approximately 75,000 ounces of gold

and 12,000 tonnes of copper per annum in a high arsenic concentrate grading approximately 16.5% copper and approximately 30 g/t gold.

• The target growth plans are to grow production since acquisition

from 550,000 tonnes per year to 2,000,000 tonnes per year.

• All concentrates produced are currently processed through the

Tsumeb Smelter. In March 2010 DPM purchased the Tsumeb Smelter in Namibia.

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000 , 200 worked hours Man s

• ccurrence
• f

number LTIs FR

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

Health and Safety

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 5 10 15 20 25 30 2004 2005 2006 2007 2008 2009 2010 (Q1-Q3) LTI (FR) Number of LTIs or MTIs MTIs LTIs LTI’s (FR)

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Safety Model

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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Safety – Four Key Concepts

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 or 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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Roles in Safety

Safety Support Roles Workers Front-line Management Middle Management Upper Management Union Board/Corporate Executives Government Line Management

• Provide support
• Develop systems
• Audit systems
• Train & develop
• Right to know
• Right to participate
• Provide support for

workers

• Right to know
• Right to participate
• Obligation to work safely
• Obligation to notify of

unsafe conditions or acts

• Provide safe equipment

tools and workplace

• Train and enforce
• Set & enforce policies, rules

& procedures

• Ensure compliance with

legislation

• Inspect workplace
• Enforce compliance with

legislation

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www.dundeeprecious.com Chelopech Mining EAD General Overview Presentation MINE

November 2010

Ore bodies – plan view

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Level 405 Development 103 151 150 19w 19e 18 17 16 8 149 147 145

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Zapad shaft Kapitalna shaft Iztok shaft Sever shaft Nadejda Decline CW link 405 151 150

Chelopech Long Section

149 103 16 19

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Mineral Resources – Dec 2008

• Reduce cutoff and apply new gold equivalent formula -

35% increase in tonnes and 20% increase in metal.

5 10 15 20 25 30 35 40 45 50 RSG-March 2003 RSG-Nov 2004 FinOre_Aug 2005 RSG-Aug 2006 RSG-Oct 2007 Coffey-Dec 2008 Coffey-Jan 2009 (3.2g/t cutoff) Tonnes (*million) Year

Resource Estimate by Category

Inferred Indicated Measured

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Geology Reserves

Mineral Reserves (NI43-101 Compliant)

Ore locations and distribution of reserves.

• Mineral Reserves performed by Coffey Mining, dated October 2009 which

formed part of the 2009 DFS; includes mining depletion; Cut-off @ 3.2g/tAuEq, AuEq = 2.5*Cu% + Au g/t.

Metal Proven & Probable Tonnes Grade Ounces (Million) (g/t) (Moz) Gold 23.1 3.6 2.7 Tonnes Grade Pounds (million) (%) (Mlb) Copper 23.1 1.2 640

Chelopech Performance

EBITDA

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22 52 93 99 85 118 82

43,990 71,799 64,939 66,712 56,760 75,542 55,178

20 40 60 80 100 120 20,000 40,000 60,000 80,000 100,000 120,000 2004 2005 2006 2007 2008 2009 2010 (Q1-Q3) $ million tonnes sales - revenue, $M sales - DMT 19.6 57.8 57.6 28.8 58.6 37.7 0.0 10.0 20.0 30.0 40.0 50.0 60.0 2005 2006 2007 2008 2009 2010 (Q1-Q3) $ million Site operating EBITDA

Sales

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Chelopech Performance

50 100 150 200 250 300 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 2005 2006 2007 2008 2009 2010 (F) troy oz '000 mt Concentrate produced (mt) metal in conc - Cu (mt) metal in conc - Au (troy oz), '000 Cu (mt) Au (troy oz' 000) Concentrate (mt)

25 25 25 25 25

Mill/Mine Expansion Project

• “Upgrades to existing site infrastructure and process facilities

to meet the projected increased ore production and mill throughput targets”, broadly defined by;

– Installation of an under ground crushing/ore handling system – Upgrade of the mine ventilation system to allow for increased utilization of mobile equipment – Upgrades to Process Plant including installation of SAG mill, additional flotation capacity, upgrade of tailings facility, and water recovery. – Construction of Paste Fill Plant and related underground reticulation system. – New Run-of-Mine pad and crushed ore stockpile and mill feed system.

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Production Schedule – Mill

981 1,002 1,336 1,801 1,935 1,935 2,037 2,025 2,003 2,003 2,003 2,008

1.4 1.5 1.5 1.3 1.3 1.4 1.1 1.3 1.5 1.5 1.4 0.7 4.3 3.8 4.1 4.5 3.9 3.6 3.8 4.2 4.7 4.5 4.1 1.8 0.0 1.0 2.0 3.0 4.0 5.0 6.0 500 1,000 1,500 2,000 2,500 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Cu (%); Au (g/tonne) ('000 tonnes) Ore processed Grade Cu (%) Grade Au (g/tonne)

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Production Schedule – Concentrate

71,657 75,470 102,472 124,912 129,246 140,393 117,698 132,249 156,322 151,920 145,481 72,318

11,864 12,469 16,901 20,611 21,326 23,165 19,420 21,821 25,793 25,067 24,004 11,932 83.1 62.8 94.4 145.8 133.9 124.1 131.8 137.5 160.0 147.0 135.0 69.2 50 100 150 200 250 300 350 400 450 500 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ('000, troy oz) (mt) Concentrate produced (mt) metal in conc - Cu (mt) metal in conc - Au ('000; troy oz)

ID

Task Name

Start Finish Duration

2009 2010 2011 Q3 Q2 Q3 Q4 Q2 Q1 Q4 Q4

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

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17 18 19 20 21 22

99w 30/09/2011 09/11/2009 Mill Expansion 12.6w 30/03/2011 03/01/2011 Operating Permits (Area 00) 12.2w 23/12/2010 30/09/2010 Primary Crushing (Area 11) 57.4w 28/12/2010 23/11/2009 Grinding (Area 13) 67w 30/12/2010 18/09/2009 Flotation (Area 14) 44.8w 16/12/2010 08/02/2010 Concentrate Handling (Area 15) - wet 47w 18/03/2011 26/04/2010 Concentrate Handling (Area 15) - dry 39.2w 14/01/2011 16/04/2010 Concentrate Reagents (Area 16) 65.6w 03/11/2010 03/08/2009 Paste Backfill Plant (Area 76) 33w 29/03/2010 11/08/2009 Lime Slaking (Area 82) 29w 23/07/2010 04/01/2010 Other Reagents (Area 84) 52.4w 30/09/2011 30/09/2010 Fresh Water Services (Area 86) 82w 05/08/2011 11/01/2010 Process Water Supply (Area 87) 14.2w 06/01/2011 30/09/2010 Air Services (Area 88) 23.2w 30/12/2010 22/07/2010 Power Generation and Electrical (Area 94) 125.8w 28/02/2012 01/10/2009 Mine Expansion 13.2w 28/02/2012 29/11/2011 Operating Permits (Area 00) 82w 08/07/2011 14/12/2009 Surface Stockpile and Mill Feed System (Area 11) 64.8w 31/03/2011 04/01/2010 Ventilation (Area 262) 82.2w 29/07/2011 01/01/2010 Development (Crushing and Conveyor Incline, incl. portal) (Area 27) 88.4w 29/11/2011 22/03/2010 Installation (Crushing and Conveyor Incline) (Area 27) Q1 2012 Q1 Q2 Q3 Q4

Mine/Mill Expansion – schedule

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Mine Mill Internal rate of return – after tax, % 41.7 Capital Payback, years (from start up: Mine Mill 2012) 1.4 NPV, M$ @ 7.5% discount rate 170.2

Financial Results

Assumptions 2011 onwards Copper price $1.75 Gold price $800 Exchange rate $/EUR $1.35

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Economics – Cashflow

Cumulative Project Cash Flow - pretax 381 (65)

(100)

• 100

200 300 400 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Yearly (million $)

(100)

• 100

200 300 400

Cummulative (million $) Project Cash flow - pretax Cumulative Project Cash Flow - pretax

Assumptions 2011 onwards Copper price $1.75 Gold price $800 Exchange rate $/EUR $1.35

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Sensitivity – IRR (after tax)

AFTER TAX INTERNAL RATE OF RETURN SENSITIVITY

$600 $700 $900 $1000 $1.40 $1.60 $1.90 $2.10 0% 10% 20% 30% 40% 50% 60% 70% 80%

• 30%
• 20%
• 10%

0% 10% 20% 30% Percentage Change in Parameter After tax IRR (%)

Gold Price Copper Price Capital Costs Operating Costs

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Sensitivity – NPV (after tax)

AFTER TAX NET PRESENT VALUE SENSITIVITY

$600 $700 $900 $1000 $1.40 $1.60 $1.90 $2.10 $0 $50 $100 $150 $200 $250 $300 $350

• 30%
• 20%
• 10%

0% 10% 20% 30% Percentage Change in Parameter After tax NPV at 7.5% ($USM)

Gold Price Copper Price Capital Costs Operating Costs

Cash Cost per tonne (USD)

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33.0 37.3 44.1 58.6 55.1 55.7 47.3 46.4 29.8

10 20 30 40 50 60 70

2005 2006 2007 2008 2009 Q1 '10 Q2 '10 Q3 '10 after expansion

$/ tonne

cash cost per tonne (incl. royalty) cash cost per tonne (excl. royalty)

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Haulage to the dump Hoisting Dump and wagon loading Vyara Decline

Ore handling infrastructure

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www.dundeeprecious.com Chelopech Mining EAD General Overview Presentation MINE

November 2010

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Old – Sublevel Caving New – Sublevel Longhole Stoping

Chelopech Mining Methods

Ventilation Underground water impact Ground conditions impact

Stope sequencing, block 150

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Mining Methods

Block 150 Level 330 Level 300 Level 270

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Stope 9А Stage 1 Stage 2 60 m Level 330 Level 300 Level 270 Block 150

Slot raise Down drill blasting holes

Block 150 Stope 9А

Upper drill blasting holes Level 330 Level 300 Level 270

Stage 1 Stage 2

Mined stope 3D model (CMS)

Stage 1

Level 330 Level 300 Level 270

Block 150 Stope 9А Stage 1 Stage 2

Slot raise Pillar rings Upper drill blasting holes

Stage 1 Stage 2

Level 330 Level 300 Level 270

Block 150 Stope 9А

Mined stope 3D model (CMS)

Stage 1 and 2 Stage 1 Stage 2

Level 330 Level 300 Level 270

Block 150 Stope 9А

Level 330 Level 300 Level 260

Block 150 Stope 9А

Stope ready for fill

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45

Backfill

• Dry Rock fill
• CRF
• HF
• Paste fill
• No waste

stockpile

Level 330 Level 300 Level 260

Block 150 Stope 9А Stage 1

Stope preparation for backfill

Build barricades

Level 330 Level 300 Level 260

Block 150 Stope 9А Stage 1

Stope backfill Stage 1

Level 330 Level 300 Level 260

Block 150 Stope 9А Stage 1

Stope backfill Stage 1

Build barricades

Level 330 Level 300 Level 260

Block 150 Stope 9А Stage 2

Stope preparation for backfill

Level 330 Level 300 Level 260

Block 150 Stope 9А Stage 2

Stope backfill Stage 2

Level 330 Level 300 Level 260

Block 150 Stope 9А Stage 2

Stope backfill Stage 2

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• Front-end loader
• Jumbo Axera
• Dump truck
• Drill rig

Modern Equipment

• Electrical and mechanical maintenance –

planning, maintenance and repair

– Mobile equipment – Stationary equipment – Electrical equipment

Achievements in maintenance

• Central workshop:

– Light Vehicle Service – Machine Shop – Rebuild Section – Drifter Workshop – Manufacture Workshop mobile equipment planned overhauls

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Achievements in maintenance

Drifter workshop Light Vehicle Service Savings: $130K / annually Manufacture and machine workshop Savings: $480K / annually

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Achievements in maintenance

Simulator Development and Technology Centre

Hydraulic stand Cabin: Toro 0010 Engine: Detroit S50

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• Reliable production at 1 mtpa

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Mine Production

624,310 911,179 920,150 906,070 911,382 957,042 1,084,315 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 2004 2005 2006 2007 2008 2009 2010 (F) tonnes

Ore Hoist

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Ore handling infrastructure

Haulage to the dump Hoisting Dump and wagon loading Vyara Decline

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Zapad shaft Kapitalna shaft Iztok shaft Sever shaft Nadejda Decline CW link 405 151 150 149 103 19 CV7 CV6 CV4 CV5 CV3 CV2 Level 165 Level 195

total Project to-day distance plan actual % compl. conveyors 4,295 2,511 1,941 45%

• ther

1,000 951 620 62%

Underground crusher and conveyor

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360 330 300 260 225 195 165 Fresh air raise Fresh air raise Return air raise Ore pass 330/195 225/195 Ore bin Tip Crusher Chamber CV1

Conveyor Project Layout

Block 151

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Underground crusher and conveyors

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Conveyor Project

Agreed conveyor decline layout - portal

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Conveyor Decline Layout

Vyara Portal

The excavation and concrete work for the external Portal

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Sever Fan

• Updated ventilation model to meet life
• f mine requirements
• Exhausts at the rate

– Current: 154 m3 /sec – Design criteria: 235m3/sec – The fan chosen and currently being engineered: 265 m3 /sec

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www.dundeeprecious.com Chelopech Mining EAD General Overview Presentation PROCESS PLANT

November 2010

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Process Plant – treated ore

623,810 851,964 952,753 913,440 900,563 980,928 1,001,819 200,000 400,000 600,000 800,000 1,000,000 1,200,000 2004 2005 2006 2007 2008 2009 2010 (F) tonnes

Treated Ore

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Process Plant – recoveries

85.95 83.66 84.99 86.62 86.51 86.85 84.56 82.47 85.36 87.08 85.98 87.21 20 40 60 80 100 2004 2005 2006 2007 2008 2009 recovery (%) Cu Recovery Model Cu Recovery Cu Recovery 58.10 49.10 55.70 61.17 62.17 61.85 58.21 49.28 57.96 65.18 61.17 64.64 20 40 60 80 100 2004 2005 2006 2007 2008 2009 recovery (%) Au recovery Model Au Recovery Au Recovery CuRec= 101,9503-+0,1326*(Cu %)-0,186*(Ag ppm)-1,3782*(S/Cu%) AuRec= 72,4367+24,1769*(Cu%)-0,2818*(Ag ppm)-3,012*(S%)

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66 82 70 80 77 79 35 35 32 34 35 34 31 27 25 25 34 9 10 20 30 40 50 60 70 80 90 100 2004 2005 2006 2007 2008 2009 grs/dmt ; kWhrs/dmt PAX consumption (gs/dmt) Power consumption ( kWhrs/dmt) Frother consumption (gs/dmt) 1.47 1.63 1.50 1.45 1.45 1.48 7.56 8.69 6.67 5.50 4.44 3.72 1 2 3 4 5 6 7 8 9 10 2004 2005 2006 2007 2008 2009 kgs/dmt Grinding Media consumption Lime consumption

Process Plant – consumables

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Process Plant Flowsheet - current

SAG Mill assembly

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SAG Mill lining

SAG Mill assembly

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New Mill Central Motor Control Center

Concentrator upgrade

Flotation cells

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Process Plant Flowsheet – 2011

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Process Plant Flowsheet – 2012 onwards

The completed Paste Back-fill plant and Surge tank Tailings slurry running through the system

Paste Plant

• Progress

– Commissioning completed on September 23 – Paste is being delivered underground and cement addition has been reduced from 7% to 4.1%.

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Paste Reticulation underground

• Designed area - 110 ha;
• Designed capacity - 25-30 million m3;
• As of Q3, 2010:

– Occupied area – approx. 902 decares; – Filled volume – approx. 10.2 million m3 or 15.3 million tons;

• Class 1 Hydro-Engineering Facility.

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Tailings Management Facility (TMF)

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TMF Management

TMF MANAGEMENT PLAN HEALTH AND SAFETY PLAN OVERALL DESIGN FOR CONSTRUCTION, OPERATION DESIGN FOR CLOSURE AND RECULTIVATION INTERNAL AND EXTERNAL EMERGENCY PLAN AUDIT REPORT OF THE FACILITY ANNUAL ENGINEERING/ OPERATIONAL PLAN/ DESIGN DESIGN FOR MONITORING SYSTEM SHIFT REPORTS, DAILY AND MONTHLY REPORTS PROGRAM FOR PREVENTING AIR POLLUTION PROCEDURES AND WORKING INSTRUCTIONS EXPERTS COMMISSION ENVIRONMENTAL MONITORING EXPERTISE REPORT ANNUAL REPORT FOR TMF MANAGEMENT AND CONTROL PROGRAM FOR PREVENTING WATER FROM POLLUTION POLICY FOR PREVENTION OF BIG EMERGENCIES

• The project to be

completed in 2010

80

Projects – Rock Buttressing

• f the Main Embankment

Progress on the lift of the Dam Wall and the Buttress

TMF Phase 2

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TMF wall buttressing

Before April 2010 After November 2010

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www.dundeeprecious.com Chelopech Mining EAD General Overview Presentation Environment and Sustainable development

November 2010

• Chelopech Mining is situated in traditional old mining

region;

• Since 90s of the last century neither state nor industry care

for the environment;

• Damaged areas from past mining activities can be seen all

around the region;

• Three mining companies (two open pits, one underground

mine) and one smelter operate in the region;

• In the region: five TMFs constructed; one of them already

rehabilitated.

84

Background – Srednogorie region

85

Process Plant Flowsheet - future

• Environmental Monitoring;
• Environmental Projects;
• Environmental Procedures and Permits;
• Environmental Reporting.

86

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, incl. Zlatitsa;

• Submission of results to competent authorities and to

stakeholders, incl. data, analysis and mitigation measures;

• Regular sites inspections and audits

• Areas for improvement:

– Water conditions:

• Usage of fresh water with no drinking properties for toilets and bathrooms;
• Discharge of not treated domestic waste water to the environment;
• Discharge of the TMF decant water to the environment;
• TMF effect on ground water;

– Fugitive and non-fugitive dust emissions

• Communication with the stakeholders on complaints for

noise, dust and cracks in the houses

– Noise – from ventilation shafts; – Transport of concentrate and cement; – Complaints for Cracks in the houses.

87

Environmental Performance

• Pre-feasibility study for drinking water supply and

domestic waste water treatment plant;

• Zero discharge in normal weather conditions:

– Improvement of the recycling water system; – Paste plant commissioning and production expansion ;

• Further groundwater modeling to assess:

– Effects to groundwater movement and quality that may arise when groundwater extraction from the mine is stopped, and – Further geochemical and groundwater modeling to assess effects

• f seepage from the TMF both during operation and post
• peration/closure phase.

88

Mitigation measures in place (1)

• Irrigation, regular washing and cleaning of the internal

industrial roads and streets from the approved transport scheme;

• Reconstruction of the roads and other infrastructure

projects;

• Reduction of the dust emission sources with SAG mill

commissioning and relocation of the Primary crusher underground;

• Pre-feasibility study for refurbishment of the railway

siding located on the Company site and construction of a concentrate/goods handling facility;

89

Mitigation measures in place (2)

• Water discharged in Topolnitsa River, permitted amount - 638,750 m3/annum:

90

Discharged water

• As result of the Mine/Mill Expansion Project the water balance model

developed by KP showed 0 discharge in normal weather conditions

100,000 200,000 300,000 400,000 500,000 600,000 700,000 2004 2005 2006 2007 2008 2009 2010 (Q1-Q3)

DISCHARGED WATER QUANTITIES 2004 - 2010(m3)

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Rehabilitation projects – I stage

• ld buildings and stock piles

Before 2004 2004-2005 Autumn 2006

What Has Been Done:

92

Rehabilitation projects – II stage

surface cave

May 2009

What has been done:

Before 2005

93

Awards

94

Buffer zone around TMF (west side)

The zone was rehabilitated with native species

June 2010 April 2010

95

Rehabilitation project – III stage

waste rock stockpiles (ongoing)

What has been done:

August 2010 November 2010

Noise reduction project at the ventilation shaft – executed.

• Permits for water consumption from a surface water:

– Kachulka Dam; – Dushantzi Dam; – Vozdol River (for exploration).

• Permit for ground water consumption from the Chelopech

mine;

• Permit for waste water discharging;
• Permit for temporary waste collection and storage;
• TMF Management Plan and Application for Permit –

submitted in MOEW on March, 31 2010.

96

Environmental Permitting

• Closure and Rehabilitation Project (Entire Operation);

– Approved by MEET (Ministry of Economy, Energy and Tourism) and MOEW in 2010; – Project costing app. $ 25M; – Financial guarantee for the project implementation (bank guarantee or alternative) - due November, 2010.

• Hazardous Waste Storage – design done; construction

forthcoming;

• Domestic Waste Water Treatment Plan – design in 2010;

construction 2011.

97

Environmental Projects

• Transparency and dialogue

– Information centers – link company and community – Informal meetings – Individual visits to residents and neighborhoods

98

Community Dialogue

• Stakeholders dialogue

– Attendance and participation in municipal council sessions – Information meetings – Open doors days – Engagement with company/ community projects – Grievance mechanism Access to up-to date information/ documents Easy way of asking difficult questions Job vacancies announcement Preparation of information materials

• Investment in local communities infrastructure

– 2010 Social Programme – 1MBGN to 5 municipalities

• Investment in education

– Chelopech Mining Private English Language School – Schools in Chelopech/Chavdar – Kindergartens in the region – Joint Apprenticeship programme with Pirdop Mechanical school

99

Social Responsibility

• Investment in culture

– Preservation of regional cultural traditions and rituals

• Investment in sport

– Supporting sports clubs nationally and locally

• Support to Zlatitsa Orphanage

and Vulnerable people Chelopech Mining winner of 2010 Corporate Social Award

• f the Bulgarian Mining and

Geology Chamber

100

Cultural Heritage sites of regional importance

• Chelopech

– St. Nikolay Mirlikiiski church – built in 1835 monument of culture

• Tzarkvishte

– St. Ekaterina church – a place

• f religious and cultural unity

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www.dundeeprecious.com Chelopech Mining EAD General Overview Presentation Exploration

November 2010

• Geological Setting
• Deposit Geology
• Mineral Resources
• Exploration History
• Exploration Potential
• Exploration Strategy
• Exploration Targets
• Future of Chelopech

102

Chelopech - Exploration

Epithermal High-Sulphidation Ore Deposit

Chelopech HG Ore (Red), Designed Deeps Exploration Drives (Yellow) and Programme (Blue).

Looking NW

• Chelopech - Northern end of the

Panagyurishte metallogenic district in the central part of the Banat - Srednogorie belt

• NNW alignment of porphyry-copper

(Elatsite, Assarel and Medet) and epithermal Cu-Au deposits (Chelopech, Elshitsa and Radka)

• Chelopech Geology

– Basement – Precambrian gneiss – Chelopech Formation – Cretaceous Andesitic volcanoclastics/ Turonian Two Mica Sandstone – Mirkovo Formation – Reddish Limestone – Chugovista Formation – Senonian Sediments - Flysch – clay rich limestone/sandstone

• Ore Hosted

– Lower Chelopech Formation – silicified andesitic breccias

103

Geological Setting

Elasite - 154Mt@0.33%Cu

Chelopech – 27.5Mt@1.4%Cu,4.3g/tAu

Medet – 163Mt@0.32%Cu,0.1g/tAu

Assarel - 254Mt@0.41%Cu

Elshitsa - 2.5Mt@1%Cu,1.5g/tAu Radka - 6.4Mt@1%Cu

• Alteration

– Silica core (vughy qtz), advanced argillic, qtz-ser and propylitic

• Mineralisation

– 3 phases (Fe-S, Cu-Au-As-S, Pb-Zn)

• Ore Minerals

– PY-MA, EN-LUZ-TN-BN-CPY, SPH-GA

• Structure

– Orthorhombic set of faults – Conjugate fault model for high and low angle faults

104

Deposit Geology

• Texture

– Andesitic, silicified breccia, MS (149&147), SW(151, 150 & 19) and DIS (103&182) sulphides.

• Morphology

– Lens-like & columnar bodies that typically dip steeply towards the S & SE

Vectoring in a high-sulphidation system

Leapfrog Structural Model Looking West

105

Mineral Resources – Dec 2008

Cutoff AuEq M Tonnes AuEq Cu (%) Au (g/t) Ag (g/t) S (%) As (%) Measured Resource 2 19.076 6.9 1.3 3.6 9.7 14.2 0.4 3 16.223 7.6 1.4 4 10.6 15 0.4 3.2 15.705 7.8 1.5 4.1 10.8 15.1 0.5 4 13.917 8.3 1.6 4.4 11.4 15.6 0.5 5 11.977 8.9 1.7 4.7 12.2 16.2 0.5 Indicated Resource 2 37.001 4.5 0.8 2.5 5.9 12 0.2 3 20.919 6 1.1 3.4 7.2 13.6 0.3 3.2 19.078 6.3 1.1 3.5 7.4 13.9 0.3 4 13.595 7.4 1.3 4.2 8.1 15.1 0.4 5 10.05 8.4 1.4 4.8 8.6 15.9 0.4 Measured + Indicated Resource 2 56.077 5.3 1 2.9 7.2 12.7 0.3 3 37.142 6.7 1.2 3.6 8.7 14.2 0.4 3.2 34.783 7 1.3 3.8 8.9 14.4 0.4 4 27.512 7.8 1.4 4.3 9.8 15.3 0.4 5 22.027 8.7 1.6 4.7 10.6 16.1 0.5 Inferred Resources 2 26.840 3.4 0.6 1.9 8.2 10.4 0.2 3 11.615 4.6 0.8 2.6 10.9 11.6 0.2 3.2 9.792 4.9 0.9 2.7 11.4 11.8 0.3 4 4.947 6.2 1.1 3.5 13.9 13.0 0.3 5 2.628 7.8 1.4 4.3 15.9 14.0 0.4 AuEq = 2.5*Cu (%) + Au (g/t)

106

Exploration History

Exploration Jun 1956 – Feb 1992 1992 Jan 1993 to Sep 2003 Aug 2003 to Present Life of Mine Period Company State Owned (Incl. Polimet) Closed Navan (incl. Homestake) Dundee Years 36 11 5 Surface DDH (m) 266,895 1,456 7,198 235,549 UG DDH (m) 26,858 28,982 143,204 199,044 Total Metres 293,753 30,438 150,402 474,593 Discoveries Pre 1958 – Block150, 18, 17/16 2009 - Block 145 & 147 1962 – Block 103 & 19 2010 - Target 181 & 182 1964 – Block 103 1970 – Block 151 1974 – Block 149

• 2004

– 30,000m UG drilling to confirm historic drill data between the 405mRL and 200mRL to generate a CNI43-101 compliant mineral resource – Surface Geophysics (Titan-24)

• 2005

– North Chelopech Surface Exploration Drilling Program

• 2008

– Commence Deeps Exploration Program – DHEM – proof of concept, Structural Geological Model, Terraspec Analysis, Leapfrog Modeling & Multi-Element Analysis

• 2009 & 2010

– Deeps Program, Chelopech North – Chelopech SW

107

Exploration History – DPM

Metres Drilled vs Resources 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year Metres 5 10 15 20 25 30 35 40 45 50 Mt GC + Expl Drilling Resource Tonnes

Unconstrained IP Chargeability Inversions in Gocad Model – Over Chelopech Note: IP Chargeabilities are Indicators of Disseminated or Massive Sulphide Mineralization in <500-750m Range. Chelopech Ore bodies & Alteration 1300m - 0m - VIEW LOOKING NORTH

• Deeps Potential

– Continuation of known mineralisation

• Near-mine

– +500Kt high-grade 149 style deposits plus extensions to existing ore zones – Confirmed with recent discoveries

• Greenfields

– +5Mt low-grade 151 style deposits – Chelopech SW – Chelopech W & NW

• High Potential

– Current Deposit represents top of larger system based on equal amounts of dickite and kaolinite, abundant illite (relative to sericite), and very little alunite and pyrophyllite – Metal zonation from Pb-Zn rich in the NE to Cu-Au rich in the SW – Structural similarities exist to the SW – Epithermal system located down and to the southwest.

108

Exploration Potential

• Near Mine Exploration Strategy

– +500kt discoveries close to infrastructure to replace annual production

• Deeps Exploration Strategy

– Extend known mineralisation at depth

• Greenfields Exploration Strategy

– +5Mt discoveries based on geological model

• 4 Diamond Drill Rigs – Cost US45/metre
• Progress

– Central Deeps program complete in 2010 – Commence Western Deeps program in 2010 – Commissioned new processing facility – Introduced comprehensive quality control procedures (RBGO books) – DHEM programs – Leapfrog Modeling – 3D structural- geological model – Terraspec Analysis – Multi-element Geochemistry

109

Exploration Strategy

Chelope pech ch SW

B151 B103 B150

Deeps All >4AuEq & >2AuEq

Looking ESE

B150 B151 B103 B16 B19 B18

Deeps ps Explorat ration n Drives

• Near Mine Exploration Targets

– C31, Magnetic Low, Targets 181 & 182 N17, CWLink.

• Deeps Exploration Targets

– Western Deeps, targetign down plunge extents of known orebodies (151, 150, & 103) – 300m below current 2g/tAuEq Resource. – Completed Central Deeps

• Brownfields Exploration Targets

– Chelopech North

• Greenfields Exploration Targets

– Chelopech SW

Current Exploration Targets

110

N Exploration Targets

300m

16_270 Central Deeps >4g/tAuEq shell & >2g/tAuEq shell no fade

• Accelerate Exploration – Increase

Budget & Rig Production Rates

• Highly Prospective but Under Explored
• Full Range of Exploration Targets
• Develop Geological Model & Exploration

Practices

• Continue to replace mined Reserve &

add additional Resources

Future of Chelopech

111

Open at Depth

100m

Block 147

112

www.dundeeprecious.com Chelopech Mining EAD General Overview Presentation SUMMARY

November 2010

113

Organizational Structure

Executive Director Richard Howes Manager, HR Services - Bulgaria Vladislava Radneva Manager, Finance - Bulgaria Konstantin Petkov Manager, Process Plant Nikolay Hristov Manager, Environment & Sustainable Development - Bulgaria Irena Stambolieva Manager, Sales Elisaveta Vassileva Manager, Administration & Security Mariela Branislavova Manager, Supply Margarita Silyanova Manager, Safety Peter Hoh Manager, Mine Operations Ilia Garkov Environmental Manager Konstantina Gradeva VP Environment Adrian Goldstone Legal Manager - Bulgaria Petya Dombalova Manager, IMS Anna Ivanova Manager, Projects Raymond Sporne

• Switched mining method and brought production from 550,000 tonnes to 1

Million tonnes per year

• Invested US $ 229 M to date to upgrade and improve infrastructure and

equipment and make operations reliable.

• Significant improvements to employee health and safety and improvement to

the environment.

• Through training and development of the workforce, we have created a skilled

and motivated workforce.

• Strong emphasis on performance and development of people.
• Invested significantly in local communities and developed strong community

support and strong relationships with local communities and government.

• Board Approved and Permitted Expansion of Mine and Mill to 2 Million tonnnes

per year.

• Secured long term processing solution for Chelopech concentrates.
• Successful Exploration program to increase ore reserves and extend LOMP.

114

Chelopech – Progress to date

• Expansion project underway, on budget and schedule with completion

by 4th Qtr. 2011.

• Improved operating efficiencies and lower costs with design of new infrastructure

and advanced technologies.

• Working to create highly skilled, motivated and engaged workforce through

defined strategy to increase productivity.

• Restructuring of the operation to streamline.
• Benchmarking to world class operations.
• Introduce better production management systems.
• Reviewing opportunities for increased gold and copper recoveries, and pursuing

potential synergies with NCS.

• Continue the work on the Exploration Program to increase Reserves

115

Chelopech – Path Forward

Why the Need for Change

• Expansion to 2MT will require a 30 % productivity

improvement and 44% unit cost improvement

• Current performance contains waste in the form of

– poor use of resources – low performing employees – inefficient use of the shift time – poor planning – conflicting activities – bottlenecks

• Improvements will only come with a change in the way we

manage the operation to reduce or eliminate the waste and motivate the people.

116

• System and process view for the operations to allow

better integration and optimization

• Computerized Maintenance Management System,

integrated with the other systems on site

• Enhanced training system to ensure the right

competencies and skills for the operators / fitters

• Use models to identify bottlenecks on a timely manner

(Production, Simulation, Stope Cycle)

• Initiate Projects to improve efficiency in

– Work execution – Mobile maintenance facilities – Haulage – Production drilling and blasting

117

Main Areas of Focus for the Mine Design to achieve 2 million tonnes

118

Mining Operations Management Information flow → Linking processes and systems

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 Chrushing Conveying

Real time Process Monitoring and Control Mining Operations Management System

119

Sandvik Chelopech Gemcom Equipment Intelligence Telecommunication Infrastructure Operations Control / Asset Management Business Intelligence Business Planning Systems (ERP)

Mining Execution Management (Mobile Equipment) Maintenance Management (CMMS)

Enterprise Resource Planning (ERP)

Production Control

Operations Information Management (Reporting, Performance Management, Analysis) Mobile Equipment (Unit Automation) Asset Tracking Mobile Equipment Gateway Wireless Communication Network Mobile Personal Communication Devices

Mining Operations Management

Automation Communication Network Wired Communication Devices Fuel & Lubricant Dispensing Access Control / Time & Attendance UG Crusher & Conveyor Process Control Technical Services (Design, Planning, Survey, MRM, etc.) Central Blasting Inbound Logistics Personnel Tracking

To Be Determined

Other UG Fixed Plant Process Control

Integrated Mine Management System Systems and Enabling technologies integration Proposed system boundary for Chelopech Mine

Process Improvement Computerized Maintenance Management System Integrated Mine Management System

Mine Improvement Program Scope

Sustainable production at 2 mtpa

120

Partners: Sandvik, Gemcom, KPMG

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

The Management Operating Model

Work Management (FLPS) Analyze & Improve Integrated Planning Set Sustainability Expectations

Central Monitoring and Control 121

122

Employee Engagement

People

• Senior Leadership
• Manager
• Co-workers/Colleagues
• People Focus

Total Rewards

• Pay
• Benefits
• Recognition

Company Practices

• Policies & Practices
• Performance Management
• Company Reputation
• Brand Alignment

Quality of Life

• Work/Life Balance
• Physical Work

Environment Opportunities

• Career

Opportunities

• Training &

Development Work

• Work Activities
• Sense of Accomplishment
• Autonomy
• Resources
• Processes

???????????? Engagement

123 24% 25% 12% 20% 14% 5% future 33% 21% 10% 16% 15% 5% 2010 budget

Labour Materials (mining and processing) Energy (incl. fuel and lubricants) Maintenance materials Services Others

Cash cost structure

63 $/tonne 34 $/tonne

124 43% 19% 10% 20% 8% 2010 (F)

Mining ($/t) Processing ($/t) Services ($/t) Administration ($/t) Royalty ($/t)

51% 23% 8% 10% 8% future

Cash cost structure

56 $/tonne 34 $/tonne

125

EBITDA contribution with expansion

• 50

100 150 After expansion US$ million

EBITDA before and after expansion

Additional EBITDA as a result of reduction in unit costs Additional EBITDA as a result of increased throughput EBITDA at current levels