“These outcomes are extremely encouraging because it demonstrates the potential for a camp-style stratabound skarn mineralizing system,” Raj Ray, a mining analyst at BMO Capital Markets, wrote in a analysis notice to purchasers.
On the Fransen goal, 1 km northwest of Čoka Rakita, drill gap BIDD236A intersected 21 metres of 1.77% copper, 1.2 grams gold and 43.47 grams silver from 112 metres downhole, and drill gap BIDD229 returned 17 metres of 1.39% copper, 1.35 grams gold and 6.68 grams silver from 700 metres, together with 9.2 metres of two.04% copper, 1.45 grams gold and 9.6 grams silver.
“Assuming continued exploration success,” famous Ray, the discoveries “might add scale to the Čoka Rakita challenge and considerably improve the economics.”
$381 million capex
A preliminary financial evaluation in Could proposing a 10-year mine producing 129,000 oz. gold per yr (164,000 oz. yearly within the first 5 years) at an all-in sustaining price (AISC) of $715 per oz., estimated an after-tax internet current worth of $588 million at a 5% low cost fee and an inside fee of return of 33%. The mine might price $381 million to construct.
A prefeasibility research (PFS) is due within the first quarter of subsequent yr with development beginning as early as mid-2026 and commissioning in 2028.
“It’s thrilling as a result of it presents near-term manufacturing,” Dundee CEO David Rae stated in an interview on Wednesday.
The challenge is about 160 km southeast of the capital Belgrade, and simply 320 km from Dundee’s Chelopech mine, which is forecast to provide 155,000 to 175,000 oz. gold and 29 to 34 million lb. copper this yr at AISCs of $650 to $790 per ounce.
“The actually compelling alternative right here for me is that is one thing in our yard and simply 5 hours by highway away from our main asset Chelopech, and we are able to use that chance to entry our abilities and regional assist for issues like exploration, technical companies, provide chains, authorized and allowing,” Rae stated. “We are able to leverage the experience and credibility we’ve got within the space.”
Dundee has been working in Serbia since 2004 and has developed sturdy native contacts.
“We’ve been there a very long time, and we’ve received good relations, most significantly with native stakeholders but additionally the federal government,” Rae stated. “We all know the federal government effectively and are on superb phrases. We have now been working carefully with them to know what we have to do to allow. We’re assured we are able to develop this challenge over time.”
Čoka Rakita holds 9.8 million inferred tonnes grading 5.7 grams gold and 1.21 grams silver for 1.8 million oz. gold and 382 million oz. silver, in keeping with an preliminary useful resource issued in December.
Dundee, with16 drill rigs on the challenge, has accomplished 22,000 metres of drilling since January and goals to drill one other 35,000 metres earlier than the tip of the yr. A lot of that may concentrate on Dumitru Potok, Frasen and different regional targets because it has virtually accomplished the infill drilling it must do at Čoka Rakita in assist of the PFS.
Outcomes from drilling at Dumitru Potok earlier this yr included gap DPDD012, which minimize 26 metres of three.54% copper and three.03 grams gold from 1,155 metres downhole.
“It’s very early days but however there’s heaps extra to return and clearly a lot of actual property to do exploration,” Rae says.
Survey
Exploration work will even observe up on a latest magneto-telluric survey that highlighted conductivity targets on the Potaj Čuka exploration licence, which extends for a number of kilometres alongside strike north of Dumitru Potok.
The targets at Potaj Čuka have the identical traits and geological setting as Dumitru Potok and Frasen due to their potential stratabound and porphyry fashion mineralization, the corporate says.
Dundee’s Čoka Rakita topped the charts of a Northern Miner survey of the highest 10 drill ends in the primary seven months of the yr. In February drill gap RIDD052A minimize 81 metres grading 50.57 grams gold from 122 metres depth.
“The area was traditionally explored for porphyry and high-sulphidation epithermal methods however because the discovery of Čoka Rakita, the exploration mannequin has been up to date to focus on skarns,” BMO’s Ray famous.
Infrastructure
The 109-sq.-km challenge has easy accessibility to roads, energy strains and technical assist, leveraging the area’s wealthy mining historical past and the corporate’s expertise in underground mining.
Dundee additionally owns the Timok gold challenge within the Balkan nation. It has budgeted between $20 million and $22 million for exploration exercise in Serbia this yr.
Ray has an outperform score and a goal value of C$18 per share on the corporate’s inventory, effectively above the inventory’s 52-week excessive of C$13.62.
In mid-afternoon buying and selling in Toronto, Dundee was buying and selling at C$12.92 per share, down C$0.06 on the day. The corporate has a market capitalization of C$2.3 billion.