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Property Description and Location

The proposed mine site is located at Ada Tepe, approximately three kilometers south of the town of Krumovgrad in southeastern Bulgaria. The project plan contemplates the construction of an open pit mining operation comprised of a process plant, which will employ conventional crushing, grinding and flotation processing for gold extraction, and the disposal of thickened tailings, together with mine rock waste, in an integrated mine waste facility ("IMWF"). An updated capital estimate and optimized mine plan, completed in March 2014, continue to support the construction and operation of this project. The plant is designed to treat up to a maximum of 840,000 tonnes of ore per annum over an eight year mine life, including processing stockpiled low grade ore at the end of the project. The treatment rate is consistent with existing permitting applications and environmental submissions. The "NI 43-101 Technical Report, Ada Tepe Deposit, Krumovgrad Project, Bulgaria" was filed on SEDAR at www.sedar.com on March 28, 2014.

On November 24, 2011, the Bulgarian Minister of Environment and Waters signed a resolution approving the environmental impact assessment ("EIA") with a provision for pre-emptive execution. The EIA resolution and the pre-emptive execution were both appealed. These appeals were both ultimately rejected by final rulings issued by the Supreme Administrative Court ("SAC") and are not subject to any further appeals.

The Bulgarian Council of Ministers ("CoM") granted a 30-year concession to Krumovgrad to develop the Khan Krum deposit (the Krumovgrad Gold Project) in February 2011. Based on the terms in the CoM resolution, Krumovgrad entered into a concession contract with the CoM, represented by the Minister of Economy, Energy and Tourism, on April 25, 2012. The concession contract confirms the rights of Krumovgrad to the project over a 30-year period.

Infrastructure in the area of the Ada Tepe deposit is good, with paved roads, power and water resources available within close proximity to the project. Small villages are dispersed widely throughout the license area involved in subsistence farming, particularly the growing of tobacco. The other main source of land use within the license area is for forestry, which is state controlled.


The area covering the Krumovgrad License was originally explored in the early to mid 1990's on behalf of the Bulgarian State, when an extensive program of geological mapping, trenching and drilling over the nearby Surnak prospect, together with a minor amount of trenching on the Skalak and Kuklitsa prospects was undertaken. The entire license area was covered by the regional soil sampling program (average sample grid 250 meters by 50 meters) conducted during this time, in addition to magnetic and induced polarization surveys across the prospect. The results of this work showed the presence of a gold soil geochemical anomaly of significant intensity and extent over the prospect, and a variety of geophysical anomalies.

Balkan Mineral & Mining AD ("BMM"), an indirect subsidiary of DPM, was awarded the Krumovgrad License area covering 130 km2 in June 2000, in accordance with the Agreement of Prospecting and Exploration reached with the Bulgarian Ministry of the Economy and Energy ("MoEE"), and commenced further exploration to better define these previously discovered anomalies. In accordance with the Underground Resources Act (1999), time extensions to the Krumovgrad License area required reduction of the original area allocated, resulting in the current License area of 100 km2. This is located approximately 320 kilometers (by road) south east of Sofia, immediately to the south of the town of Krumovgrad, within the south east Rhodope mountains.

Stock Quote: TSE

Price 4.45

Change -0.06

Volume 183,547

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10/18/2019 04:00 PM ET Pricing delayed 20 minutes
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