analyst mine tour april 16, 2010 chelopech mining ead general...

www.dundeeprecious.com

Chelopech Mining EAD

General Overview

ANALYST MINE TOUR

APRIL 16, 2010

FORWARD–LOOKING STATEMENTS

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 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.

2

Contents

1. Overview

2. Mine

3. Mill

4. TMF

5. Environment and Social Responsibility

6. Project

7. Summary

33

Chelopech Location

Chelopech

4

5

• 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 immediatesurroundings. 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

6

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 2010 DPM purchased the Tsumeb Smelter in Namibia.

7000,200 workedhours Man

soccurrence of number LTIsFR

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

0

5

10

15

20

25

30

2004 2005 2006 2007 2008 2009

LT

I (F

R)

nu

mb

er o

f LT

I or

MT

I

MTI

LTIs

LTI’s (FR)

8

Safety Model

Line

Ownership

Employee

Involvement

Comprehensive

Safety

Systems

Regular Auditing

of Safety

Systems

Leadership

Safe Employee

Behaviors

Safe Equipment

& Workplace

Safe Results

Leadership is the most important part and drives the rest.

9

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.

10

Roles in Safety

Safety

Support Roles

Workers

Front-line

Management

Middle

Management

Upper

Management

Union

Board/Corporate

Executives

Government

Lin

e M

anagem

ent

• 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

11

Concentrate produced

0

50

100

150

200

250

300

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2005 2006 2007 2008 2009

troy o

z '0

00

mt

Concentrate produced (mt) metal in conc - Cu (mt)

metal in conc - Au (troy oz), '000 metal in conc - Ag (troy oz), '000

Cu (mt)

Au (troy oz' 000)

Ag (troy oz' 000)

Concentrate (mt)

12

Concentrate sales

22

52

9399

85

118

43,990

71,79964,939 66,712

56,760

75,542

0

20

40

60

80

100

120

0

20,000

40,000

60,000

80,000

100,000

120,000

2004 2005 2006 2007 2008 2009

$ m

illio

n

tonnes

sales - revenue, US$M sales - DMT

13

Financial Performance

15.0

52.750.9

18.2

42.7

0.0

10.0

20.0

30.0

40.0

50.0

2005 2006 2007 2008 2009

US

$ m

illio

n

Gross Prof it

14

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

15

Workforce Demographics

Gender Structure

Average age of workforce: 38 yrs

Age Structure

22%

78%

РАЗПРЕДЕЛЕНИЕ ПО ПОЛ

womenmen

23%

34%

27%

14%

РАЗПРЕДЕЛЕНИЕ НА ПЕРСОНАЛА ПО ВЪЗРАСТ

ВЪЗРАСТ ДО20 ГОДИНИ

ВЪЗРАСТ ОТ 20 ДО 29 ГОДИНИ

ВЪЗРАСТ ОТ 30 ДО 39 ГОДИНИ

ВЪЗРАСТОТ 40 ДО 49 ГОДИНИ

ВЪЗРАСТОТ 50 ДО 59 ГОДИНИ

ВЪЗРАСТ НАД 60 ГОДИНИ

40-49

50-59

20-29

30-39

16

Workforce Demographics

Average years of service: 15

• EducationDuration of Service

University19%

Elementary6%

College1%

High School74%

БРОЙ ПЕРСОНАЛ ПО ОБРАЗОВАНИЕ

21%

21%

12%

12%

25%

9%

БРОЙ ПЕРСОНАЛ ПО ГОДИНИ ТРУДОВ СТАЖ

СТАЖ ДО 5 ГОДИНИ

СТАЖ ОТ 6 ДО 10 ГОДИНИ

СТАЖ ОТ 11 ДО 15 ГОДИНИ

СТАЖ ОТ 16 ДО 20 ГОДИНИ

СТАЖ ОТ 21 ДО 30 ГОДИНИ

СТАЖ ОТ 31 ДО 40 ГОДИНИ

СТАЖ НАД 40 ГОДИНИ

up to 5 yrs

31-40

6-10

11-1516-20

21-30

17

Jobs Structure

GroupJob

Grade

Employee

Numbers

% from Total

Company BG

Headcount

% from Total

Company Headcount

(incl. expats)

Management

(senior & middle)D, M 37 3.9% 3.8%

Supervisory C, C1 72 7.7% 7.5%

Professional S, S1 133 14.2% 13.8%

Skilled Q, Q1 605 64.5% 62.7%

Semi-skilled U 91 9.7% 9.4%

Expatriate 27 2.8%

TOTAL: 965

18www.dundeeprecious.com

Chelopech Mining EAD

General Overview Presentation

MINE

April 2010

19

Mine Production9

11

,17

9

92

0,1

50

90

6,0

70

911

,38

2

95

7,0

42

0

20,000

40,000

60,000

80,000

100,000

0

200,000

400,000

600,000

800,000

1,000,000

2005 2006 2007 2008 2009 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

ton

ne

s /

mo

nth

ly

ton

ne

s /

ye

arl

y

Ore Hoist (t)

2009 monthly budget

2009 monthly actuals

Ore bodies – plan view

20

21

Sever fan

Zapad Shaft

Kapitalna Shaft

Iztok fan

Nadezhda decline

Chelopech Long Section

22

Old – Sublevel Caving New – Sublevel Longhole Stoping

Chelopech Mining Methods

VentilationUnderground water impactGround conditions impact

23

STOPE

CRF

HF

3A

3В

WF

Stoping Relations Stopes / Backfill - WEST

24

STOPE

CRF

HF

WF

9C

9A

15B/C

Stoping Relations Stopes / Backfill - CENTRAL

Stope sequencing, block 150

25

26

Mining Methods

Block 150

Level

330

Level

300

Level

270

27

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

270Block 150

Stope 9А

Stage 1

Stage 2

Slot raise

Pillar rings

Upper drill blasting holes

Stage 1

Stage 2

Level

330

Level

300

Level

270Block 150

Stope 9А

Mined stope

3D model (CMS)

Stage 1 and 2

Stage 1

Stage 2

Level

330

Level

300

Level

270Block 150

Stope 9А

Level 330

Level 300

Level 260

Block 150

Stope 9А

Stope ready

for fill

33

33

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 backfillStage 1

Level 330

Level 300

Level 260

Block 150

Stope 9А

Stage 1

Stope backfillStage 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 backfillStage 2

Level 330

Level 300

Level 260

Block 150

Stope 9А

Stage 2

Stope backfillStage 2

40

• 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

41

Mine LayoutU/G Crushing and Conveying

42

Crusher & ConveyorConceptual Arrangement

43

Conveyor Project Layout

44

Conveyor Project Layout

45

Ore handling infrastructure

Haulage to the dump

Hoisting

Dump and wagon loading

Vyara Decline

46

Conveyor Project

Agreed conveyor decline layout - portal

47

48

Conveyor Decline Layout

49

Sever Fan

• The ventilation modeling has been performed by site and reviewed by Consulting Engineers

• Update of the ventilation model to

meet life of mine requirements

50www.dundeeprecious.com

Chelopech Mining EAD

General Overview Presentation

PROCESS PLANT and TMF

April 2010

51

Process Plant – treated ore6

23

,81

0

85

1,9

64 9

52

,75

3

91

3,4

40

90

0,5

63

98

0,9

28

0

20,000

40,000

60,000

80,000

100,000

0

200,000

400,000

600,000

800,000

1,000,000

2004 2005 2006 2007 2008 2009 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

ton

ne

s /

mo

nth

ly

ton

ne

s /

ye

arl

y

2009 monthly budget

2009 monthly actuals

52

Process Plant – ore Cu grade1

.58

1.5

9

1.4

1

1.3

5

1.1

7

1.3

9

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

2004 2005 2006 2007 2008 2009 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

(%) / m

onth

ly

(%) / yearly

2009 monthly budget

2009 monthly actuals

53

Process Plant – Cu recovery8

4.5

6

82

.47

85

.36

87

.08

85

.98

87

.21

85

.95

83

.66

84

.99

86

.62

86

.51

86

.85

0

10

20

30

40

50

60

70

80

90

100

0

10

20

30

40

50

60

70

80

90

100

2004 2005 2006 2007 2008 2009 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

(%)

/ m

on

thly

(%)

/ ye

arl

y

CuRec=101,9503-+0,1326*(Cu %)-0,186*(Ag ppm)-1,3782*(S/Cu%)

ActualModel

54

Process Plant – Au recovery5

8.2

1

49

.28

57

.96 6

5.1

8

61

.17

64

.64

58

.10

49

.10 5

5.7

0 61

.17

62

.17

61

.85

0

10

20

30

40

50

60

70

80

90

100

0

10

20

30

40

50

60

70

80

90

100

2004 2005 2006 2007 2008 2009 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

(%)

/ m

on

thly

(%)

/ ye

arl

y

AuRec=72,4367+24,1769*(Cu%)-0,2818*(Ag ppm)-3,012*(S%)

ActualModel

55

Process Plant –

Concentrate Produced5

1,6

22

67

,75

5

70

,10

8

65

,06

0

54

,66

9

71

,65

7

0

2,000

4,000

6,000

8,000

0

20,000

40,000

60,000

80,000

2004 2005 2006 2007 2008 2009 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

ton

ne

s /

mo

nth

ly

ton

ne

s /

ye

arl

y

2009 monthly budget

2009 monthly actuals

56

Process Plant – consumables6

6

82

70

80

77 7

9

31

27

25

25

34

9

35

35

32

33

.8

35

.0

34

.4

0

10

20

30

40

50

60

70

80

90

100

0

10

20

30

40

50

60

70

80

90

100

2004 2005 2006 2007 2008 2009 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

grs

/dm

t ;

kW

hrs

/dm

t [m

on

thly

]

grs

/dm

t ;

kW

hrs

/dm

t [y

ea

rly]

PAX

Power

Frother

monthly actuals

57

Process Plant –

Process Water consumption2

,00

0,1

31 2

,41

2,1

10

2,4

75

,23

5

2,4

38

,70

5

2,4

81

,16

6

2,7

06

,92

3

0

50,000

100,000

150,000

200,000

250,000

300,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2004 2005 2006 2007 2008 2009 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

m3 /

month

ly

m3 /

yearly

2009 monthly max capacity

2009 monthly actuals

58

Process Plant –

Fresh Water consumption6

78

,07

8

1,0

16

,72

4

94

3,2

13

1,0

08

,85

1

1,0

05

,94

8

82

8,2

80

0

30,000

60,000

90,000

120,000

0

200,000

400,000

600,000

800,000

1,000,000

2004 2005 2006 2007 2008 2009 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

m3 /

month

ly

m3 /

yearly

2009 monthly permitted quantity

2009 monthly actuals

59

Process Plant –

Discharged water to the river4

01

,10

0

49

6,5

81

29

1,0

87

62

0,4

42

30

2,4

80

13

6,5

63

0

20,000

40,000

60,000

0

200,000

400,000

600,000

2004 2005 2006 2007 2008 2009 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

m3 /

month

ly

m3 /

yearly

2009 monthly permitted quantity

2009 monthly actuals

60

Process Plant Flowsheet - current

Х-Н 750

COB

Х-Н 750

ШАХТА

КАПИТАЛНА

shaft capitalna jaw crushers СИЛОЗ ЗА CEMENT

Наклонка"Надежда" ЧЕЛЮСТНИ НАТРОШЕНА

Decline ТРОШАЧКИ РУДА

FOB

H2O

washing screen

ПРОМИВНА

ПРЕСЕВНА

УРЕДБА

dewatering screen

ОБЕЗВОДНЯВАЩО ПРЕЛИВ

СИТО ПРЕЛИВ М2

М1

ERAL КОНУСНИ

ТРОШАЧКИ СОНДАЖ

con crushers ПЪРВИ СТАДИЙ НА СМИЛАНЕ ВТОРИ СТАДИЙ НА СМИЛАНЕ BOREHOLE

Н-4000 КМДТ Н-3000

ПРЕСЕВНИ

УРЕДБИ

screens

СГЪСТИТЕЛ 12 м

slime thickener

Scavengers floatation

КОНТРОЛНА МЕДНА ФЛОТАЦИЯ ДЕНВЕР 300

РЕЗЕРВОАР

filtration feed tank

Roughers floatation

ОСНОВНА МЕДНА ФЛОТАЦИЯ -ДЕНВЕР 500

КЕРАМИЧЕН ФИЛТЪР СС 30-35

ceramec filter

МЕДЕН КОНЦЕНТРАТ AMDEL CONC

copper conc

Cleaners floatation

МЕДНИ ПРЕЧИСТКИ-ДЕНВЕР 30

СГЪСТИТЕЛ 18 м СГЪСТИТЕЛ 18 м СГЪСТИТЕЛ 18 м

thickener thickener thickener

ХВОСТОХРАНИЛИЩЕ

TMF

M2 - SM1 - P

61

COB

AMDEL FEED

ШАХТА

КАПИТАЛНА

shaft capitalna jaw crushers

Наклонка"Надежда" ЧЕЛЮСТНИ CEMENT

ТРОШАЧКИ

ПРЕЛИВ

М1

СОНДАЖ

BOREHOLE

ПОЛУАВТОГЕННА МЕЛНИЦА

SAG Mill

Roughers floatation AMDEL TAILS

ОСНОВНА ФЛОТАЦИЯ -OK 100

Scavengers floatation

КОНТРОЛНА ФЛОТАЦИЯ ДЕНВЕР 300

РЕЗЕРВОАР

filtration feed tank

Scavengers floatation

КОНТРОЛНА ФЛОТАЦИЯ -ДЕНВЕР 500

ФИЛТЪР ПРЕСА

КЕРАМИЧЕН ФИЛТЪР СС 30-35 Pressure filter

ceramec filter

МЕДЕН КОНЦЕНТРАТ AMDEL CONC

copper conc

Cleaners floatation

МЕДНИ ПРЕЧИСТКИ-ДЕНВЕР 30

СГЪСТИТЕЛ

thickener

ХВОСТОХРАНИЛИЩЕ

TMF

35

SAG Mill

Process Plant Flowsheet - 2010

62

COB

AMDEL FEED

jaw crushers

Наклонка"Надежда" ЧЕЛЮСТНИ CEMENT

ТРОШАЧКИ

ПРЕЛИВ

М1

СОНДАЖ

BOREHOLE

ПОЛУАВТОГЕННА МЕЛНИЦА

SAG Mill

Roughers floatation AMDEL TAILS

ОСНОВНА ФЛОТАЦИЯ -OK 100

Scavengers floatation

КОНТРОЛНА ФЛОТАЦИЯ ДЕНВЕР 300

РЕЗЕРВОАР

filtration feed tank

Scavengers floatation

КОНТРОЛНА ФЛОТАЦИЯ -ДЕНВЕР 500

ФИЛТЪР ПРЕСА

КЕРАМИЧЕН ФИЛТЪР СС 30-35 Pressure filter

ceramec filter

МЕДЕН КОНЦЕНТРАТ AMDEL CONC

copper conc

Cleaners floatation

МЕДНИ ПРЕЧИСТКИ-ДЕНВЕР 30

СГЪСТИТЕЛ

thickener

ХВОСТОХРАНИЛИЩЕ

TMF

35

SAG Mill

Process Plant Flowsheet - future

63

Main Wall and Retention Walls

Emergency Spill Way

Tailings Deposition Infrastructure

Process, Seepage and Fresh Water Pump Stations

Monitoring Infrastructure

Tailings Management

Facility • Control and monitoring of the dam

– 30 piezometers

– 14 survey pins

– 13 EM piezometers

• 24 hours presence of personnel at the TMF

64

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

65

TMF wall buttressing

66

TMF wall buttressing

67www.dundeeprecious.com

Chelopech Mining EAD

General Overview Presentation

ENVIRONMENT and

SOCIAL RESPONSIBILITY

April 2010

• Water monitoring – 47 points;

• Waste monitoring – 41 waste products;

• Meteorological monitoring – 2 stations;

• Air monitoring:

– Dust and gas emissions – 5 sources;

– Air quality monitoring – villages of Chelopech & Chavdar; Zlatitza

railway;

• Noise monitoring – 3 points;

• Blast vibration monitoring – 1 point;

• Soils and vegetation monitoring – 8 points;

• Biological monitoring – 7 points .

68

Environment Monitoring

• Closure and Rehabilitation Project (Entire Operation);– Submitted to MEET (Ministry of Economy, Energy and Tourism) and RIEW (Regional

Inspectorate of Environment and Waters) for approval on March 9, 2010;

– Project costing app. $ 29M;

– Financial guarantee for the project implementation (bank guarantee or alternative) - due

within 90 days after project approval.

• Rehabilitation of 10 ha historically disturbed land – completed, post closure

care;

• Rehabilitation of 1.5 ha around Iztok ventilation shaft – design and

execution;

• Buffer zone at the flotation TMF;

• Hazardous Waste Storage – design and construction;

• Construction of 3 new piezometers for water monitoring at TMF area;

• Wet land at the TMF main embankment toe;

• Domestic Waste Water Treatment Plan – design;

• Supply with fresh water for domestic purposes – design.

69

Environmental Projects

70

Environmental measures

What Has Been Done:

71

Rehabilitationold buildings and stock piles

Before 2004

2004-2005

Autumn 2006

What Has Been Done:

72

Rehabilitationnorth industrial site

Before 2005

Autumn 2006

What Has Been Done:

73

Rehabilitationsurface cave

April 2008

May 2009

What Has Been Done:

• Permits for water use from a surface water:

– Kachulka Dam;

– Dushantzi Dam;

– Vozdol River (for exploration)

• Permit for water use ground water from Chelopech underground

mine; (and for domestic purposes – Rezidencia);

• Permit for waste water discharging;

• Permit for temporary storage and transport of waste;

• TMF Management Plan and Operational Permit – submitted in

MOEW on March, 31.

74

Environmental Permitting (Current Operation)

Chelopech Expansion Project up to 2Mtpa

• Updated Life of Mine Plan (LOM), including mine and mill expansion up

to 2 Mt - approved by MEET and MOEW (Ministry of Environment and

Water) in November 2009;

Metal Processing Facility (MPF)

• EIA Decision No8/2008 – granted (2008); revoked April 2010

• IPPC Permit 381-НО/2009 – granted (2009) and currently appealed;

• Permit 146/2009 (Seveso) for an industrial facility with a high risk

potential – granted (2009) and not appealed.

75

Environmental Permitting

76

Social Responsibility Program 2010

of approximately 1 MBGN funding for

projects in the towns of Chelopech, Chavdar,

Karlievo, Tsarkvishte and Poibrene

Chelopech English High School

Social Responsibility

77

Community Relations - Chelopech

78

Community Relations - Karlievo

79

Social Responsibility – other

initiatives

Support to Zlatica

Orphanage

Information Centers on site

and in ChelopechSupport to other Local

communities initiatives

80

Social Responsibility – other

initiatives• Various Initiatives for the employees: newsletter,

celebration of events, support to environmental

projects in the community

• Open Door days

• Celebration of International Environmental Events

• Participation in National Initiatives

81www.dundeeprecious.com

Project Overview

Chelopech Mining EAD

April 2010

8282828282

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

– Upgrade of the ROM Pad & crushed ore stockpile and mill feed system.

– Installation of Paste Fill System.

– Upgrades to grinding, flotation and concentrate handling systems including increased Flotation TMF capacity, tailings transportation and water recovery.

83

Project Schedule

ID Task Name Start Finish20102009 2011

NovOct FebJan Apr JanMar AprOct Dec Mar MaySep SepFeb MayAug JulJunDec Jul

1

2

3

4

5

6

7

8

9

10

11

12

13

07/01/201111/08/2009Mill Expansion

07/01/201112/10/2010Operating Permits (Area 00)

26/02/201002/11/2009Primary Crushing (Area 11)

11/10/201007/09/2009Grinding (Area 13) - CRITICAL

11/10/201007/09/2009Flotation (Area 14)

16/04/201030/09/2009Concentrate Handling (Area 15) - wet

31/01/201102/08/2010Concentrate Handling (Area 15) - dry

11/10/201013/07/2010Concentrate Reagents (Area 16)

30/07/201003/08/2009Paste Backfill Plant (Area 76)

26/02/201011/08/2009Lime Slaking (Area 82)

10/11/201018/08/2010Other Reagents (Area 84)

31/12/201001/01/2010Fresh Water Services (Area 86)

– scope to be defined

31/12/201001/03/2010Process Water Supply (Area 87)

11/10/201013/07/2010Air Services (Area 88)

14 11/10/201001/10/2009Power Generation and Electrical

(Area 94)

5

3

2

1

31/08/201101/10/2009Mine Expansion

31/08/201101/06/2011Operating Permits (Area 00)

01/06/201101/10/2009Surface Stockpile and Mill Feed System

(Area 11)

30/09/201001/10/2009Ventilation (Area 262)

30/06/201101/10/2010Installation (Crushing and Conveyor

Incline) (Area 27)

AugJun

4 30/12/201001/01/2010Development (Crushing and Conveyor

Incline) (Area 27)

Nov Aug

Duration

369d

64d

85d

286d

286d

143d

131d

65d

260d

144d

61d

261d

220d

65d

268d

500d

66d

435d

261d

260d

195d

• Completed foundations for the SAG Mill

pedestals

84

SAG Mill foundations

85

Flotation cells area - basis

86

Lime Storing and Dosing area

87

Paste Reticulation Process Design

Surface to underground Boreholes

• Allow for the utilisation of existing Borehole B (6”)

• 2 paste boreholes to be drilled & cased (10”)– U/G development & reticulation connection required

Underground Reticulation

• Designated paste infrastructure to develop

• Internal boreholes to drill & case

• 8” Steel & poly piping used

• Flow & Pressure instrumentation

• Pressure relief & isolation devices to design & install

88

Backfill – Paste Plant

89

Paste Plant - DrawingsUnderground design concept

New Paste Fill Plant

90

Vacuum Filter Surge

Tank assembly

Paste Plant

Ready for installation of the cladding

91

Equipment installed as the

structure goes

Paste Plant

92www.dundeeprecious.com

Chelopech Mining EAD

General Overview Presentation

SUMMARY

April 2010

• 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.93

Chelopech – Progress to date

• Expansion project underway, on budget and schedule with completion

by 3rd 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

94

Chelopech – Path Forward

95

Ore handling infrastructure

Haulage to the dump

Hoisting

Dump and wagon loading

Vyara Decline

Cash Cost per tonne (USD)

96

33.037.3

44.1

58.655.1

29.4

0

10

20

30

40

50

60

70

2005 2006 2007 2008 2009 after expansion

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

97

EBITDA contribution with expansion

-

50

100

150

After expansion

US

$ m

illio

n

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

98

Employee EngagementPeople

Senior Leadership

ManagerCo-workers/Colleagues

People Focus

Total Rewards

Pay

BenefitsRecognition

Company Practices

Policies & Practices

Performance ManagementCompany Reputation

Brand Alignment

Quality of Life

Work/Life Balance

Physical Work Environment

Opportunities

Career OpportunitiesTraining & Development

Work

Work Activities

Sense of AccomplishmentAutonomy

ResourcesProcesses

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