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