Dundee gets environmental nod for Bulgarian gold

Thu Nov 24, 2011 10:42am EST
 
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(Reuters) - Canada's Dundee Precious Metals Inc (DPM.TO: Quote) said it received environmental approval from the Bulgarian government for its Krumovgrad gold project, sending its shares up as much as 8 percent.

A new feasibility study for the gold project is being finalized and is expected by November end, the company said in a statement.

"We expect the study to indicate an operation capable of producing about 100,000 ounces of gold in concentrate per year over an eight year mine life with on-site operating costs of less than $400 per ounce," Dundee Capital Markets analysts led by Paul Burchell in a client note.

The Krumovgrad Gold project was awarded to the company's unit, Balkan Mineral & Mining, in June 2000.

Earlier this year, the Bulgarian government granted a 30- year concession to the project.

Shares of the company were trading up 63 Canadian cents at C$9.11 on Thursday morning on the Toronto Stock Exchange. It touched a high of C$9.13 earlier in the session.

(Reporting by Arnav Das Sharma in Bangalore; Editing by Viraj Nair)