DUNDEE PRECIOUS METALS ANNOUNCES THE RESTART OF ITS ARMENIAN GOLD-SILVER-COPPER-ZINC OPERATIONS
Fox Business
April 1 2009
TORONTO, ONTARIO, Mar 31, 2009 (Marketwire via COMTEX) —-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 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.
SOURCE: Dundee Precious Metals Inc.
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