Dundee Precious Metals Inc.
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Dundee Precious Metals Inc.

November 05, 2009 10:51 ET

Bulgarian Court Ruling on Environmental Impact Assessment Metals Processing Facility in Chelopech

TORONTO, ONTARIO--(Marketwire - Nov. 5, 2009) - Dundee Precious Metals Inc. ("DPM" or the "Company") (TSX:DPM)(TSX:DPM.WT)(TSX:DPM.WT.A) A court decision on the appeals proceedings with respect to the Environmental Impact Assessment ("EIA") resolution for the planned construction and operation of a metals processing facility at Chelopech was announced today by the Bulgarian Supreme Administrative Court (the "Court"). The Court decision is for revocation of the EIA resolution issued by the Minister of Environment and Waters in July 2008 and a return of the EIA administrative file to the Ministry of Environment and Waters ("MoEW") for another review.

The principal reasons for the decision include:

  • The two and a half year period between the date of review of the EIA by the Supreme Expert Environmental Council (10.03.2006) and the date of the EIA resolution (30.07.2008);
  • The MoEW did not provide justification as to why Chelopech and Chavdar were deemed to be the only affected municipalities; and
  • The proposed processing (pressure oxidation leach) technology cannot be considered best available technology if it has not been used on similar types of copper-arsenic concentrates and at the same scale of the proposed operation.

"While we are extremely disappointed with the Court's decision, we believe the Court's reasons to be unsubstantiated and without merit", said Jonathan Goodman, President and CEO of Dundee Precious Metals. "This decision does not impact Chelopech Mining's current operations and the construction of its mine and mill expansion currently being implemented."

The court decision is not final and is subject to appeal before a five-member Court panel. The Company will appeal this decision.

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, as well as a 95% interest in the Kapan Mine in Armenia. In addition, it is engaged in mineral exploration activities in Serbia.

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 www.sedar.com. 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.

Contact Information

  • DUNDEE PRECIOUS METALS INC.
    Jonathan Goodman
    President and Chief Executive Officer
    (416) 365-2408
    jgoodman@dundeeprecious.com
    or
    DUNDEE PRECIOUS METALS INC.
    Lori Beak
    Vice President, Investor Relations & Corporate Secretary
    (416) 365-5165
    lbeak@dundeeprecious.com