DPM_Denver Gold Forum 2012_v001_k398s8 by xiaoyounan

VIEWS: 2 PAGES: 41

									Denver Gold Forum, Denver, Colorado
       September 10-12, 2012
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 and output, 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.




                        TSX:DPM                                                                                                                  2
                                                                       Canada
Dundee Precious Metals Highlights                                      Sabina 11%




$1.3B gold producer

2 operating mines in Bulgaria & Armenia
                                                                   Avala 51%    Chelopech
Strategic complex concentrate smelter in Namibia                   Dunav 47%
                                                                            Krumovgrad
                                                                                         Deno Gold

2012 gold production of 132,000 to 145,000 oz


Low cash cost/ounce gold produced

Growing pipeline of growth opportunities

Experienced management team
                                                    Namibia Custom Smelter

Attractive value proposition                       Operating assets
                                                   Development assets
                                                   Exploration assets

              TSX:DPM                                                                        3
  Strong Balance Sheet

                                  Capital Structure @ Sept. 6, 2012

       $115M                       Share Price                         C$8.81
                                   Shares Outstanding                  125M
        Cash on Hand
                                   Fully diluted shares                147M
       @ June 30, 2012
                                   Additional cash on dilution         C$66M
    (excluding AVZ & DNV)
                                   52 week high - low                  $10.72 - $5.82


        $110M                     Top shareholders

Significant Operating Cash Flow   Dundee Corporation                   22.6%
       Annualized H1 2012         Equinox Partners                     10.3%


                                  Gross Revenue by Metals Sold
        $83M                                      2011A            2012E                  2016E
            Debt                    Gold         6% 5%             5%4%                   6% 6%

       @ June 30, 2012              Copper
                                              41%
                                                         48%     36%      55%
                                                                                    24%
                                                                                                  64%
                                    Silver
Total Debt:Total Capital = 10%      Zinc



                TSX:DPM                                                                                 4
Corporate Strategy

Build DPM into an intermediate, low-cost gold producer:
   Optimize value of existing operating assets
    Chelopech – production expansion and pyrite recovery project
    Smelter – complete Project 2012 upgrades & expansion
    Deno Gold Mine - open pit evaluation and underground extension

   Grow business beyond existing operating assets
    Develop Krumovgrad Gold Project
    Establish deep pipeline of greenfield exploration opportunities
    Complete acquisitions that offer accretive growth, diversity and gold exposure


   Sustain low quartile operating cost position


    Maintain a solid financial position



              TSX:DPM                                                                5
Consolidated Production and Financial Highlights

         Gold Production (000s ounces)               Copper Production (pounds in millions)
                                         132-
                                         145                                                           42-
                                                                                                       46
                                  121                                                         40
                    103
                            95
   84         84                                                                  30
                                                                     28
                                                    25
                                                            22



  2007       2008   2009   2010   2011   2012E     2007    2008     2009        2010         2011     2012E



         Silver Production (000s ounces)                      EBITDA (US$MM)
                                           640-
                                           715

                                   671
                           640
                                                                                              $118

             399    408
  333                                                                                                    $60
                                                                                      $45
                                                                      $32
                                                   ($2)    ($40)     2009             2010     2011     H1 2012
  2007      2008    2009   2010   2011     2012E   2007*
                                                           2008*   * In CDN dollars


                    TSX:DPM                                                                                       6
Chelopech Mine
 • Low Cost, Long Life Producer

Strategy                        DPM Ownership                                        100%

                                Location                                           Bulgaria
  Complete expansion to 2
  mtpy Q4 2012                  Acquired                                          Sept. 2003

  Continue to replace           Resources
                                                     Gold (oz)   (4.09 g/t)        3,930,000
  depletion and increase        Measured &
  Mineral Resources and         Indicated
                                (at Oct. 31, 2011)   Copper (lbs) (1.31% Cu)     862,840,000
  Mineral Reserves through
  exploration
                                                     Gold (oz)   (3.66 g/t)        2,660,000
  Complete feasibility study    Reserves
  on the pyrite gold recovery   (@ Jan. 1, 2012)
                                                     Copper (lbs) (1.15% Cu)     572,600,000
  project
                                Mine Type                                        Underground

                                                                               High sulphidation
                                Deposit Type
                                                                               epithermal deposit

                                Estimated Mine Life @ expanded rate                 10 + yrs



                TSX:DPM                                                                        7
   Chelopech Mine
    • Reducing Costs & Increasing Throughput
                                                                     Gold Production (000s ounces)                                                                   Copper Production (pounds in millions)
                                                                                                        110-
                                                                                                        120                                                                                           40 - 43
                                                           120               $369                               $400
                                                                                                                                                                                                37




                                                                                                                                         Cash Cost * (Gold $US/oz)
                                                                      $309
                                               Ounces (000‟s)




                                                                                                94                                                                                       27
                                                                              88                                                                                                 26
                                                                80                    $210
                                                                       71                                                                                                 19
                                                                                                                $200
                                                                                       65
                                                                40


                                                                                              ($112)
                                                                0                                               $0                                                        2008   2009   2010   2011   2012E
                                                                      2008   2009     2010     2011    2012E
* Cash cost of sales/oz gold (net of by product credits). Reconciliation included in Appendices
                                                                                                                                                                                 EBITDA (US$MM)
                                                                     Ore Processed and Cost/Tonne
                                                                                                       1,700–
       Tonnes ore processed per year (000‟s)




                                                                                                                                                                                               133
                                                                                                                       Cost/tonne ($US) (Excluding royalties)


                                                   2,000                                               1,850    $60
                                                                                                                                                                                                        103

                                                                                              1,359             $40
                                                                              981     1,001                                                                                              57
                                                   1,000               900                                                                                                       51

                                                                                                                $20                                                       27




                                                                 0                                              $0                                                        2008   2009   2010   2011   H1 2012
                                                                      2008   2009     2010    2011     2012E



                                                                                    TSX:DPM                                                                                                                     8
Chelopech Mine
 • Pyrite Project Expected to Increase Gold Recoveries
                               Gold recovered from Copper Concentrate                                                55% - 60%
                               Remaining gold rejected to tailings                                                   40% - 45%
                                                                                                             400,000 T pyrite concentrate
 Project will economically     @ 2 mtpy ore mined
                                                                                                                    produced (E)
 recover most of the
                                   Metals               Potential Grades                                Estimated Production Result
 contained gold, silver &
 copper associated with              Gold                                6-7 g/t                                 75,000 - 90,000 oz
 rejected pyrite minerals
                                    Silver                             10-15 g/t                                130,000 - 190,000 oz
 Increases gold recovery           Copper                             0.5%-0.7%                         4.5 million – 6.0 million pounds
 from 55% to 90%
 POX process can be used                                                Pyrite Project Highlights
 to produce a low mass         Cash cost per tonne of pyrite                                                                     $156
 residue resulting in a        Cash cost per oz of gold (net of by-product credits)                                              $615
 metal rich product for sale   Project capital costs                                                                           $202M
                               Average annual EBITDA(1)                                                                         $49M

                               NPV (5% discount rate) after tax(1)                                                             $141M

                               IRR after tax(1)                                                                                  24%

                               Timeline: concentrator upgrade - POX facility production                                      2013 - 2017

                               (1)Assuming   $1,250/oz gold, $25/oz silver and $2.75/lb copper after 2016.
               TSX:DPM                                                                                                                  9
   Chelopech Mine
    • Successful Low Cost Exploration Program


   Strategy
      Near Mine
                                               T181 & 182
       • +500,000 T high grade
          deposits                              147

      Greenfields                                                19
                                               149
                                                                           18
       • +5MT low grade deposits                           145 16

       • Chelopech SW
                                                     150

                                                  151
Consistently replacing depletion                      103

Spend $3-$4 M/yr on exploration




                                   Plan view of ore bodies and structure



                     TSX:DPM                                                    10
Namibia Custom Smelter
 • A Unique Strategic Asset
Strategy
                Build a one of a kind asset to treat DPM and     DPM Ownership                           100%
                third party complex concentrate
                                                                 Location                               Namibia
                Upgrade operation to meet global standards
                                                                 Acquisition March 2010                  $50M
                Increase capacity and lower costs
                Contract other third party sources of complex Capital expenditures to date               $57M
                concentrate to optimize throughput
                                                                 Project 2012 Costs                      $75M
               250
                            Smelter Capacity                     Technology                             Ausmelt
               200

                                                                 Product                           Copper blister bars
               150
Tonne (000s)




                                                                 2011 concentrate throughput        180,403 tonnes
               100

                                                                 Expanding smelter capacity         240k – 310k tpy
               50

                                                                 Sulphuric acid capture plant FS       Complete
                0
                     2009   2010 2011 H1 2012 2012E 2013E: +O2
                             Chelopech con     Third party con

                                   TSX:DPM                                                                        11
   Namibia Custom Smelter
    • Environmental & Production Upgrades
Upgrade Initiatives                                            Status                          Costs
Emissions control (Project 2012)

    Fugitive emissions (arsenic)                               Completion Q4 2012              $75M

    Sulphur emissions (acid plant)                             Completion Q4 2014              $167M

Further Production Facility Optimization Initiatives

    Additional oxygen for Ausmelt furnace
    All primary smelting in Ausmelt furnace




 3 blocks of dust-capturing chambers   New oxygen plant   New vehicle designed to vacuum     New dust disposal site
     installed in the new baghouse                        dust off the ground for disposal


                            TSX:DPM                                                                                   12
Deno Gold Mine
 • Potential to Increase Size and Life of Mine
Strategy

  Define the potential open   DPM Ownership       100%
  pit and underground
  resource for the            Location            Armenia
  Shahumyan deposit           Acquired            August 2006
  Complete open pit and
  underground studies         Mine Type           Underground
  based on the new
                              Product             Au/Cu & Zn concentrate
  resources
  Explore regional license    Deposit Type        Polymetallic vein deposit (swarms)
  to define additional
  Mineral Resources           Open Pit Resource   Q4 2012
  Continue operational        Underground Resource Q2 2013
  improvements & cost
  reductions




               TSX:DPM                                                             13
Deno Gold Mine
 • Operating & Financial Highlights

          Gold Production                                        Copper Production                                   Zinc Production
           (000s ounces)                                         (pounds in millions)                              (pounds in millions)
                      29
                               27
                                     22 - 25
                                                                                         3.0                                    19.1     19.6   16 - 18
                                                                            2.9                2.3 – 2.6

            15                                            1.9
    12                                                             1.5                                       8.8       9.1




  2008*    2009*     2010    2011     2012E              2008*    2009*     2010        2011    2012E       2008*     2009*     2010     2011      2012E



          Silver Production                                         Cash Cost                                         EBITDA (US$MM)
            (000s ounces)                                   (per tonne ore produced)
                     527      519    450 - 510


                                                                                                                                           $31.9
   296                                                   $109
            290
                                                                     $72          $66                                            $16.7
                                                                                               $63

                                                                                                                                                     $4.4
                                                                                                                       $1.9
                                                                                                            2008*
  2008*    2009*     2010    2011     2012E               2008       2009         2010         2011                 2008*
                                                                                                                        2009*    2010      2011     H1 2012


* Deno Gold operations were on care and maintenance as of November 2008; operations restarted April 2009.   ($17.1)



                            TSX:DPM                                                                                                                         14
Deno Gold Mine
 • Underground & Open Pit Potential

                                              Determine expansion potential
                                              of underground mine and open
                                              pit
                                              Determine expansion potential
                                              of underground – newly
                                              defined Shahumyan East
                                              mineralized zone
                                              285,000 m of historic Soviet
                                              drilling plus 110,000 m of DPM
                                              drilling completed
                                              Define 43-101 compliant
                                              resource estimate
                                              Study to determine optimum
                                              pit size and production rate


                                 Complete drill hole plan outlining Shahumyan East (yellow) and
                                 significant intercepts. Intervals are shown with the hole number
                                 followed by the interval in meters and gold equivalence in gram per
                                 tonnes.



          TSX:DPM                                                                                      15
Deno Gold
 • Regional Exploration Opportunities
                                                       Kapan Exploration License
                                                       (Black/White Outline)

Exploration License – 350 km2

  Regional target generation
  continued
  Highlighted several strong                                         Conductive
                                                                     anomaly
  conductive units for follow-up
  investigation
  Identified several strong
  conductors in poorly explored
  areas
  Several conductors are spatially
  related to alteration and known
  copper occurrences



                                     Central Deposit
                                     +25Mt HG Cu              Shahumyan
                                                              Polymetallic
                                                              Deposit
                TSX:DPM                                                      16
Krumovgrad Gold Project
 • Low Cost, High Return Project
                          Location                                            Bulgaria; 100% DPM ownership
                          Proposed Mine Type                                  Open Pit; low-sulphidation epithermal Au deposit
 Strategy
                          Gold Recoveries & Grade                             85%; 3.4 g/t
                          Annual ore production                               850,000 tpy
Advance project to a
                          Annual gold production                              74,000 ounces
2014 production date –
subject to appeals        Annual silver production                            35,000 ounces
                          Mine Life                                           9 years
Achieve 74,000
                          Capital Cost to complete                            US$127M*
ounces of annual gold
production                Total cash cost per oz AuEq                         $404*
                          Waste                                               Small integrated tailings and mine waste facility
Seek opportunities to
                          Recovery process                                    Conventional crushing, grinding & flotation
further increase          * As per NI 43-101 technical report filed on SEDAR January 13, 2012
recoveries                   Achievements                                                                  Status
Evaluate other               30 year mining concession
exploration                  Definitive Feasibility Study & NI 43-101
opportunities within         Final EIA approval granted Nov. 2011                                  Appeal decision pending
existing licenses
                             Detailed engineering schedule                                           Q2 2012 – Q4 2013
                             Estimated construction timeline                                             2013 - 2014
                             Estimated production timeline                                                2014/2015

                TSX:DPM                                                                                                     17
Forecast Significant Growth Over Next Three Years
 • Growing Pipeline of Development Opportunities


                             350


                             300
  Gold Production (000 oz)




                             250


                             200
                                                                                                                      Pyrite Stream
                                                                                                                      Krumovgrad
                             150                                                                                      Deno
                                                                                                                      Chelopech
                             100


                              50


                               0
                                   2008A




                                                                                                              2017E
                                              2009A


                                                      2010A


                                                              2011A


                                                                      2012E


                                                                              2013E


                                                                                      2014E


                                                                                              2015E


                                                                                                      2016E
  Source: Cormark Securities, July 26, 2012



                                           TSX:DPM                                                                                    18
    Partially Owned Exploration Investments
     • Source of Additional Value & Growth

                   SECURITIES             HOLDINGS   % HELD   VALUE @ SEPT 6, 2012

Sabina Gold & Silver Corp. (TSX: SBB)       18.5M    10.7%          $63M
         Special Warrants                   10M                     34M
         Warrants (strike C$1.07)            5M                     12M
         Total SBB                                                 $109M

Avala Resources Ltd. (TSX-V: AVZ)           110M     51.4%          $72M
         Special Rights                     50M                     33M
         Total AVZ*                                                $105M

Dunav Resources Ltd. (TSX-V: DNV)           56M      47.3%          14M
         Warrants (strike C$0.42)           27.5M                     0
         Total DNV*                                                 $14M

Total shares and other securities                                 ~$228M
*AVZ and DNV are consolidated



                                TSX:DPM                                        19
Serbian Exploration Investments (Controlled & Consolidated)
 • Support Longer Term Growth

Avala Resources (TSX-V: AVZ)                   Dunav Resources (TSX-V: DNV)
  Gold discovery in emerging sediment-          Copper-gold and molybdenum projects
  hosted gold belt in Serbia                    in Serbia
  ̴ $16M in treasury @ June 30, 2012             ̴ $9M in treasury @ June 30, 2012

  Initial Resource Estimate (80m x 80m          Resource Definition Drilling complete
  drill spacing w subset of 40m x 40m &         (NI 43101 compliant)
  NI 43101 compliant)                             • Kiseljak copper-gold porphyry – Initial
                                                    Resource Estimate expected Q3/Q4
   • Bigar Hill – 38 MT @ 1.3 g/t Au for 1.5        2012
     M oz (0.4 g/t Au cut-off)
                                                  • Preliminary Economic Assessment -
   • Korkan – Expected Q3 2012                      Underway
   • Kraku Pestar – Expected Q3/Q4 2012         Exploration „footprint‟ Drilling –
                                                Underway
  Preliminary economic assessment –
  Underway                                        • Copper-gold porphyry
                                                  • Carbonate-base metal vein system




                 TSX:DPM                                                                      20
DPM Value Proposition
                                                                                                                    2017
                                         Market Capitalization (FD)                                                  $1.3B
                                                                      Debt                                           $83M
                                                   Corporate Cash (1)                                             ($181M)
                                              Strategic Investments                                               ($228M)
                                                      Enterprise Value                                             $974M

                                                                                       2017 @ $1,600 Au; $3.50 Cu
                                                                      Chelopech                                    $230M
                                                 Deno (excluding open pit)                                             $22
                                                                   Krumovgrad                                          $65
                                                                              NCS                                      $75
                                                                             G&A                                     ($35)
                                                              Average EBITDA                                       $357(2)
                                                                     EV/EBITDA                                        2.7x
                                Estimated Capital expenditure to 2017                                              $720M
                                            Estimated Cash Flow to 2017                                            $1.35B

(1) At June 30, 2012; AVZ and DNV are assumed at $0; Fully Diluted; includes cash on dilution
(2) Assumes avg LOM EBITDA for Chelopech, Deno (assuming Deno can be extended & operated at current rates), Krumovgrad and estimate for NCS at 310,000 tpa



                              TSX:DPM                                                                                                                    21
 Compelling Investment Opportunity

           Solid operating assets with overall cost profile

           Growing pipeline of development/investment opportunities

           Significant cash flow and capital available to fund growth

           Strong balance sheet

           Proven Management and Board

           Attractive Value Proposition




Underground at Chelopech   Namibia Custom Smelter   Entrance to Deno Gold Mine   Krumovgrad

                    TSX:DPM                                                                   22
Appendices




             23
  Portfolio of Assets

Canada

         Sabina 10.7%




                                              Avala 51%


                                                        Chelopech 100%

                                  Dunav 47%
                                                          Krumovgrad 100%




                                                                                                 Kapan 100%




                                  Tsumeb Smelter 100%


                                                                            Operating assets

                                                                            Development assets

                                                                            Exploration assets



                        TSX:DPM                                                                        24
Analyst Coverage



          BMO                      John Hayes

          Cormark Securities       Mike Kozak

          Dundee Securities        Ron Stewart

          RBC Capital Markets      Stephen Walker

          Scotia Capital           Leily Omoumi

          Stifel, Nicolaus & Co.   Josh Wolfson

          Union Securities         Philip Ker




         TSX:DPM                                    25
Q2 and First 6 Months 2012 Summary
                                                      Q2 2012           Q2 2011          H1 2012           H1 2011
 Net Earnings attributable to common shareholders    $9.6 million     $9.1 million     $17.8 million     $23.1 million
 Basic EPS                                              $0.08             $0.07            $0.14            $0.19
 Gross profit (loss)
       Chelopech                                     $36.4 million    $16.5 million    $88.9 million     $33.5 million
       Deno                                          ($2.3 million)    $6.6 million    ($0.7 million)    $12.7 million
       NCS                                           ($6.0 million)   ($4.3 million)   ($11.9 million)   ($5.4 million)
 Total Gross profit                                  $28.1 million    $18.8 million    $76.3 million     $40.8 million
 Chelopech Production
       Gold (ounces)                                    29,250           19,908           64,832            32,481
       Copper (lbs)                                   9,682,137        8,222,891        21,302,602        13,261,674
       Silver (ounces)                                  52,462           34,713           111,512           57,834
       Cash cost/T ore processed (incl. royalties)      $48.68           $53.90           $47.73            $55.47
       Cash cost/T ore processed (excl. royalties)      $43.56           $49.06           $42.75            $49.97
 Deno Gold Production
       Gold (ounces)                                    4,803             7,999           11,131            15,011
       Copper (lbs)                                    505,706          721,391          1,119,103        1,464,368
       Zinc (lbs)                                     3,387,510        5,002,410         7,830,694        9,763,232
       Silver (ounces)                                  96,596          147,705           225,072          282,250
       Cash cost/T ore processed (incl. royalties)      $77.11           $70.83           $76.35            $74.65
       Cash cost/T ore processed (excl. royalties)      $77.11           $65.29           $71.55            $69.70


                         TSX:DPM                                                                                          26
2012 Guidance


                   Total capital expenditures                             $150 - $175 million
                         Mine/mill expansion at Chelopech                 ~35%

                         NCS environmental and plant optimization         ~40%

                         Krumovgrad development work                      ~15%

                         Deno Gold                                        ~10%

                   Mine output at Chelopech (tonnes of ore)               1.7 – 1.85 million

                   Mine out put at Deno (tonnes of ore)                   500,000 – 550,000

                   Concentrate smelted at NCS (tonnes)                    145,000 – 155,000



 Metals Contained in Concentrate Produced              Chelopech             Deno Gold               Total
 Gold (ounces)                                      110,000 – 120,000        22,000 – 25,000    132,000 – 145,000
 Copper (million pounds)                                    40.0 – 43.0             2.3 – 2.6         42.3 – 45.6
 Zinc (million pounds)                                                -           16.0 – 18.0         16.0 – 18.0
 Silver (ounces)                                    190,000 – 205,000     450,000 – 510,000     640,000 – 715,000




                     TSX:DPM                                                                                        27
Copper Hedge Position



 Copper derivative contracts to provide price protection on a portion of 2012, 2013
 and 2014 projected payable copper production.
 Approximately 50% of the Company‟s expected copper production for the year
 2012 has been hedged.


  Year of projected payable copper
                                     Volume Hedged (lbs) *   Average fixed price ($/lb)
             production

               2012                      11,362,611                   $4.23

               2013                       6,693,226                   $3.94

               2014                       7,195,880                   $3.73




                 TSX:DPM                                                                  28
Senior Management

Jonathan Goodman, President & CEO
P.Eng., MBA and CFA with over 25 yrs in the resource sector as a geologist, senior analyst, portfolio manager and senior executive. Joined
BGR in 1990, DPM 2003.

Adrian Goldstone, EVP, Sustainable Business Development
M.Sc. with >20 yrs in the minerals sector. Recognized internationally as a water management and cyanide use expert. Joined DPM in 2006.

Rick Howes, EVO & COO
P.Eng. with over 30 yrs in the mining sector, previously with Vale-Inco. Joined DPM in 2009.

Hume Kyle, EVP & CFO
C.A. & C.F.A with >25 yrs in strategic planning, M&A, financial planning & reporting, taxation, treasury & risk mgmt. Joined DPM in 2011.

Michael Dorfman, SVP, Corporate Development
Investment banker with over 10 yrs experience in the mining sector. Joined DPM in 2011.
Jeremy Cooper, VP, Commercial Affairs
Corporate and commercial financier with over 20 yrs investment banking experience. Joined DPM in 2003.

Iliya Garkov, VP & GM Deno Gold
Ph.D. Mining of Minerals with over 17 yrs experience with Chelopech Mining EAD. Joined DPM in 2003.

Nikolay Hristov, VP & GM, Chelopech Mine
Ph.D. mineral processing with extensive experience in research and development. Joined Chelopech Mining EAD in 2004.

Simon Meik, VP Processing
Ph.D. with >30 yrs in many aspects of the mineral processing industry, in both project engineering and operations. Joined DPM in 2003.

Hans Nolte, VP & GM Namibia Custom Smelter
Chemical engineer with over 25 yrs in the mining sector, specifically as a metallurgist in the smelting industry. Joined DPM in 2010.



                         TSX:DPM                                                                                                         29
Chelopech Mine
Updated Mineral Reserves and Resources

                                  Chelopech Mineral Reserves – January 1, 2012
                                                Gold            Copper               Silver
                               Tonnes    Grade Ounces Grade Pounds Grade Ounces
   Category                      (M)      (g/t)      (M)     (%)     (M)       (g/t)       (M)
   Proven                       14.29     3.54       1.63   1.30    408.93     9.39       4.32
   Probable                      8.33     3.86       1.04   0.89    163.67     5.93       1.59
   Total                        22.62     3.66       2.66   1.15    572.60     8.12       5.91

                                Chelopech Mineral Resources – October 31, 2011
                                               Gold            Copper               Silver
                               Tonnes   Grade Ounces Grade Pounds Grade                 Ounces
   Category                      (M)     (g/t)      (M)    (%)      (M)       (g/t)        (M)
   Measured                     16.38    4.10       2.16   1.49   538.00     11.06       5.82
   Indicated                    13.49    4.09       1.77   1.09   324.36      7.79       3.38
   M&I                          29.87    4.09       3.93   1.31   862.84      9.58       9.20
   Inferred                     9.59     2.53       0.78   0.82   173.31     10.09        3.11
   1.   Rounding of tonnage and grade figures has resulted in some columns showing relatively minor discrepancies in sum totals.
   2.   All Mineral Resource Estimates have been determined and reported in accordance with NI 43-101 and the classification adopted by the CIM.
   3.   Chelopech Mineral Reserves are based on a cut-off of $10 profit/tonne using NSR analysis as of January 1, 2012. This information has been prepared by
        Gordon Fellows and reviewed by Julian Barnes, both of whom are QPs, as defined in NI 43-101 and not independent of the Company.
   4.   Chelopech Mineral Resource cut-off grade @3.0 g/t Gold Equivalent is based on the following formula: (Au g/t + 2.25xCu%). The Mineral Resource has
        been depleted as of October 31, 2011. This information has been prepared by Craig Barker and reviewed by Julian Barnes, both of whom are QPs, as
        defined in NI 43-101 and not independent of the Company.
   5.   All Mineral Reserves and Resources are based on long term metals prices of $1,250 Au, $3/lb Cu, $25/oz Ag and $1/lb Zn.
   6.   Measured and Indicated Mineral Resources are inclusive of Proven and Probable Reserves.


                        TSX:DPM                                                                                                                                 30
Chelopech – Cash Cost Reconciliation

                                                      Year 2011   Year 2010   Year 2009 Year 2008
  US$                                                    Actual      Actual      Actual    Actual
  Cost of Sales:                                        88,838     $ 72,707    $74,499    $ 67,245
        Less amortization                              (15,499)    (14,425)    (14,242)   (11,966)


        Plus other charges, including freight
                                                        65,125      41,234      38,317        26,006
        Less by-product credits                       (147,812)    (87,320)    (64,198)   (59,376)

        Cash cost of sales after by-product credits
                                                        (9,348)    $ 12,196    $ 34,376   $ 21,909


  Gold oz (payable metal)                               83,796      58,065      93,081        70,878


  Cash cost of sales/oz gold,
     (net of by-product credits)
                                                       $ (112)1      $ 2102     $ 3693    $    3094
  1
      Based on US$4.27/lb copper
  2
   Based on US$3.42/lb copper
  3Based on US$2.34/lb copper
  4
   Based on US$3.16/lb copper




                        TSX:DPM                                                                        31
Chelopech – Cash cost/tonne Ore Processed Reconciliation



US$ thousands, unless otherwise indicated                   Year 2011   Year 2010   Year 2009   Year 2008
For the periods indicated                                      Actual      Actual      Actual      Actual

Ore processed (mt)                                          1,353,733   1,000,781    980,928     900,563


Cost of sales                                                $ 88,838    $ 72,707     75,647      67,423
Add (deduct):
  Depreciation, amortization & other non-cash costs          (15,499)    (14,425)    (15,390)    (11,966)
  Change in concentrate inventory                                862      (2,018)       (419)       (178)
Total cash cost of production                                $ 74,201    $ 56,264     59,838      55,279



Cash cost per tonne of ore processed, including royalties     $ 54.81     $ 56.22     $ 61.00     $ 61.38

Cash cost per tonne of ore processed, excluding royalties     $ 49.99     $ 51.54     $ 55.23     $ 57.87




                      TSX:DPM                                                                               32
Chelopech Exploration Results – Q2 2012

                                            Significant Intercept Results (cut-off grade 3 g/t AuEq)
                  Hole_ID                        From (m)                To (m)               Interval (m)                Cu (%)              Au (g/t)
               181_225_24                           52.5                  54.0                      1.5                     2.35                3.05

               181_225_26                           150.2                160.0                      9.8                     0.69                2.78

             EXT148_225_28                          55.5                  79.5                     24.0                     0.45                3.06

                                                    139.5                162.0                     22.5                     1.72                4.35

             EXT149_225_36                          90.0                 106.5                     16.5                     0.63                2.31

                                                    168.0                175.5                      7.5                     0.17                9.05

             EXT149_225_37                          85.5                  99.0                     13.5                     1.31                2.88

              G19E_380_40                           79.5                  86.2                      6.7                     2.11                8.01

                                                    211.3                220.5                      9.2                     9.83               19.81

              G151_195_26                           13.5                  96.0                     82.5                     1.94                6.17

                                                    102.0                138.0                     36.0                     0.76                2.79



  1.   Significant intercepts are located within the Chelopech Mine concession and proximal to the mine workings.
  2.   Minimum down hole width reported is 1.5 m with a maximum dilution of 4.5 m.
  3.   True widths are approximately 90% of the intersection width except for G151_195_26 which was drilled along strike.
  4.   Drill holes with prefix G indicate grade control drilling which is performed using BQ diamond drill core. All other holes are drilled with NQ diamond core.
  5.   Coordinates are in mine-grid.
  6.   No factors of material effect have hindered the accuracy and reliability of the data presented above.
  7.   No upper cuts applied
  8.   For detailed information on drilling, sampling, analytical methodologies refer to the NI 43-101 Technical Report for the Chelopech Project filed on Sedar on March 25, 2011.




                          TSX:DPM                                                                                                                                                 33
Deno Gold Mineral Resource Estimate


                           Shahumyan Deposit – September 2008
                   Inferred Mineral Resource – Ordinary Kriging Estimate
              10mE x 10mN x 10mRL Block Size – 5m Capped Input Composite Data


     Cut off       Tonnage     Gold Equiv.      Copper          Gold           Silver   Zinc
   (AuEq - g/t)      (Mt)         (g/t)          (%)            (g/t)           (g/t)   (%)
      0.50          335.8          1.19           0.11           0.48           8.39    0.41

      0.75          226.5          1.47           0.13           0.61           10.32   0.49

      1.00          147.1          1.80           0.15           0.79           12.62   0.57
      1.25           98.3          2.14           0.17           0.99           14.99   0.65
      1.50           69.8          2.45           0.18           1.19           17.00   0.72
      1.75           49.2          2.80           0.19           1.43           19.14   0.78
      2.00           36.3          3.13           0.19           1.68           20.87   0.83


   AuEq US$ price assumptions: Cu $2.50/lb, Au $850/oz, Ag $16/oz and Zn $1.00/lb




                  TSX:DPM                                                                      34
Deno Exploration Results – Q2 2012

 Significant Intercept Results (SHDD holes, cut-off grade 0.5 g/t AuEq) and underground significant intercepts (NXC and E holes,
                                       cut-off grade 1.0 g/t AuEq) received during Q2 2012
          Hole_ID                     From (m)            To (m)         Interval (m) & AuEq            Cu (%)           Au (g/t)            Zn (%)            Ag (g/t)
         SHDDR0338                        189               197                 8m @ 3.10                 0.19              1.45               1.58              23.45

         SHDDR0343                        116               146                30m @ 3.87                 0.50              1.49               1.77              29.27

         SHDDR0345                        301               313                12m @ 2.05                 0.07              0.43               2.30              12.19

         SHDDR0351                         0                  8                 8m @ 9.32                 0.90              5.88               0.41              86.59

         SHDDR0352                        264               279                15m @ 3.60                 0.97              0.86               1.08              27.37

         SHDDR0357                        42                 51                 9m @ 2.30                 0.14              1.04               0.75              31.07

         SHDDR0367                        337               361                24m @ 3.57                 0.50              1.62               1.22              23.13

        NXC02748_15                      223.4              225.7              2.3m @ 10.9                0.99              3.36               8.33               67.3

        NXC02748_18                      231.1              237                5.9m @ 3.93                0.30              1.51               2.28              33.68

        NXC02748_18                       159               161                2m @ 13.74                 0.10              9.74               0.99              164.80

          E703S002                        194               196                 2m @ 6.38                 0.22              3.38               1.38               93.9

          E703S005                        152               156                 4m @ 3.69                 0.07              1.40               2.40              43.07

          E703S005                       244.1              247                2.9m @ 9.56                0.59              3.75               6.28              69.55

          E703S007                        167               171                 4m @ 3.47                 0.04              2.05               0.95               41.5




  1.   In situ gold equivalent (AuEq) grade based on the following long-term metal prices $1,250/oz Au, $25/oz Ag, $3.00/lb Cu, $1.00/lb Zn.
  2.   Holes with prefix SHDDR are surface HQ open pit drilling while NXC and E holes are underground BQ drilling.
  3.   Significant intercepts for surface holes are located in the Central and Southern zone while underground drilling is located in the Central zone of Shahumyan Deposit.
  4.   True widths are approximately 90% of the intersection width.
  5.   Minimum width reported is 2m and a maximum internal dilution of 4m.
  6.   All survey coordinates are transformed to AUSPOS.
  7.   No factors of material effect have hindered the accuracy and reliability of the data presented above.
  8.   No upper cuts have been applied.




                           TSX:DPM                                                                                                                                             35
Deno Gold – Cash Cost Reconciliation


US$ thousands, unless otherwise indicated       Year 2011   Year 2010   Year 2009   Year 2008
For the periods indicated                          Actual      Actual      Actual      Actual


Ore processed (mt)                               581,852     428,865     218,235     269,033


Cost of sales                                    $ 47,863    $ 33,637    $ 21,197    $ 36,319
Add (deduct):
  Depreciation, amortization & other non-cash
  costs                                           (9,140)     (7,056)     (4,047)     (3,668)
  Care and maintenance costs                            -           -     (3,074)     (1,732)
  Change in concentrate inventory                    416       3,572       1,696      (1,485)
Total cash cost of production                    $ 39,139    $ 30,153    $ 15,772    $ 29,434


Cash cost per tonne of ore processed
  (royalties not applicable in 2009)              $ 67.27     $ 70.31     $ 72.27    $ 109.40
Cash cost per tonne of ore processed,
  excluding royalties                             $ 63.58     $ 66.33         $-          $-




                     TSX:DPM                                                                    36
Krumovgrad Gold Project




        TSX:DPM           37
Krumovgrad Gold Project
Updated Mineral Reserves & Resources
                   Krumovgrad Mineral Reserves – December 31, 2011
                                            Gold            Silver
                          Tonnes     Grade Ounces Grade Ounces
             Category       (M)       (g/t)      (M)  (g/t)       (M)
             Proven         2.94      4.70       0.44 2.54       0.24
             Probable       4.30      2.44       0.34 1.52       0.21
             Total          7.24      3.36       0.78 1.92       0.45

                  Krumovgrad Mineral Resources – December 31, 2011
                                           Gold             Silver
                          Tonnes    Grade Ounces Grade          Ounces
             Category       (M)      (g/t)      (M)   (g/t)        (M)
             Measured      3.30      4.90       0.52  3.00       0.28
             Indicated     4.69      2.50       0.38  2.00       0.24
             M&I           7.99      3.50       0.90  2.00       0.51
             Inferred      0.40      1.20       0.02  1.00       0.01
   1.   Rounding of tonnage and grade figures has resulted in some columns showing relatively minor discrepancies in sum totals.
   2.   All Mineral Resource Estimates have been determined and reported in accordance with NI 43-101 and the classification adopted by the CIM.
   3.   Krumovgrad Mineral Reserves and Resources are based on the Krumovgrad 2012 Technical Report using a variable economic cut-off grade and 0.5 g/t Au
        respectively.
   4.   All Mineral Reserves and Resources are based on long term metals prices of $1,250 Au, $3/lb Cu, $25/oz Ag and $1/lb Zn.
   5.   Measured and Indicated Mineral Resources are inclusive of Proven and Probable Reserves.




                     TSX:DPM                                                                                                                                 38
   Avala Resources Ltd. TSX-V: AVZ
   51.4% Held




Cross section through the Bigar Hill target area showing summary stratigraphy and gold mineralized drill intersections to date .

  Cut off grade (Au g/t)   Million Tonnes   Au (g/t)   Million Ouces (Au)                                             Hole         From (m)   To (m)   Int. (m)   Au (g/t)
           0.2                  63.9          0.9             1.8                                                   KORC036          213       251       38        1.03
                                                                            Bigar Hill Inferred
           0.4                  38.0          1.3             1.5                                                   KORC053          96        109       13        1.89
                                                                            Resource Estimate
           0.6                  26.4          1.6             1.4           Combined mineralized                    KORC057          44        112       68        3.15
           0.8                  20.4          1.9             1.3           zones                                   KORC069          208       245       37        2.59
                                                                            In situ Resources
           1.0                  16.5          2.1             1.1                                                   KORC070          228       259       31        1.56
                                                                            5m x 5m x 5m selective
           1.2                  13.0          2.4             1.0           mining unit                             KORC078           2        11         9        3.36
           1.4                  10.8          2.6             0.9                                                   KORC078          58        75        17        1.25
           1.6                  9.2           2.8             0.8

           1.8                  7.5           3.0             0.7

           2.0                  6.3
                                       TSX:DPM
                                              3.2             0.6                                                                                                            39
                                                                                                                                                                             39
   Dunav Resources Ltd. TSX-V: DNV
   47.3% Held
                                                                       •        Holds Tulare copper and gold project, Surdulica molybdenum project
                                                                                and other early stage projects in Serbia
                                                                       •        Tulare Cu-Au Porphyry
North-South cross section
(looking east) through Kiseljak                                                  – Cu-Au porphyry mineralization at surface to over 800 m by 300
target area highlighting recently                                                     m
drilled deep hole (KIDD040)
together with all drill hole                                                     – Located within Lece Volcanic complex – 2nd largest magmatic
intersections (0.19% CuEq cut-                                                        complex in Serbia after Timok
off. Cu-Au mineralization           Tulare
remains open at depth. Grid                                                      – Discovery of Yellow Creek Copper-Gold Porphyry – Drilling
spacing is 200 m.                                                                     returned the following strong to moderate Cu-Au intercepts
                                                                                      (0.19% CuEq COG) (Press released April 10, 2012)

                                                                       Hole          From (m)    To (m)    Int. (m)    Au (g/t)   Cu (%)     AuEq (g/t)     CuEq (%)

                                                                      YCDD008          20        400.0       380        0.48       0.37         1.22           0.61

                                                                      YCDD008          406       416.0        10        0.21       0.24         0.70           0.35

                                                                      YCDD008          426       667.0       241        0.36       0.37         1.10           0.55

                                                                      YCDD008          673       691.5       18.5       0.29       0.24         0.77           0.38

                                                                                 –      Drilling to test depth potential of Cu-Au mineralization at Kiseljak, approx.
                                                                                        350 m below current drilling returned the following strong to moderate
                                                                                        intercepts and remains open at depth (0.19% CuEq COG) (Press released
                                                                                        April 10, 2012)
                                                                        Hole         From (m)     To (m)    Int. (m)   Au (g/t)    Cu (%)     AuEq (g/t)     CuEq (%)

                                                                      KIDD040           11          312       301        0.73       0.56         1.85           0.93

                                              0.19% CuEq cut-off      KIDD040           318         620       302        0.38       0.39         1.17           0.58
                                              significant intervals
                                                                      KIDD040           626         657        31        0.26       0.32         0.91           0.45

                                                                      KIDD040           693         829       136        0.22       0.31         0.85           0.42




                                    TSX:DPM                                                                                                                           40
Dundee Precious Metals
Dundee Place
1 Adelaide St. East
Suite 500
Toronto, ON, M5C 2V9
T: 410 365-5191
www.dundeeprecious.com


Investor Relations
T: 416 365 2549
jreid@dundeeprecious.com


The Toronto Stock Exchange
DPM – Common Shares
DPM.WT.A – 2015 Warrants




                             41

								
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