DPM makes gold-copper discovery near Bulgaria mine

Canadian producer DPM Metals (TSX, ASX: DPM) said new drilling at its Brevene South Porphyry (BSP) site in Bulgaria yielded a major gold-copper discovery about 1 km from the Chelopech underground mine’s reserve footprint.

Standout hole EX_BRESPO_03 cut 713 metres grading 1.31 grams gold per tonne and 1.16% copper from 1,172 metres downhole, DPM said Wednesday in a statement. Within that interval, DPM cut 398 metres of 1.48 grams gold and 1.45% copper from 1,487 metres depth. The hole is still in progress.

The results distinguish BSP “as a potentially very high-grade porphyry system,” RBC Capital Markets mining analyst Harrison Reynolds wrote in a note. “Proximity to existing mine infrastructure de-risks the path to eventual economic extraction.”

Shares of DPM rose 1.6% to C$46.70 Wednesday morning in Toronto, valuing the company at about C$10.3 billion ($7.5 billion).

Main asset

The discovery was made at the BSP target in the southeastern portion of the Brevene exploration licence, contiguous with the Chelopech mine concession.

Located about 75 km east of Sofia, Chelopech is one of Europe’s highest-grade operating gold-copper mines. In commercial production for more than two decades, it serves as the company’s main asset. Recent exploration success at the nearby Wedge Zone Deep prospect has highlighted the potential for additional  resources within and around the mining district, DPM says.

The new zone, which lies within a hydrothermal system measuring more than 1,000 by 1,500 metres, remains open for expansion. DPM said the scale of the alteration system and the continuity of mineralization encountered so far suggest significant upside potential as drilling continues.

DPM has mobilized five high-capacity drill rigs to the BSP target. It plans up to 15,000 metres of additional drilling by the end of the year “with the key question being whether continuity and geometry can be confirmed to support a resource,” Reynolds said.

Other highlights released Wednesday include hole EX_BRES_555_02, which cut 95 metres grading 0.43 grams gold and 0.48% copper from 1,250 metres downhole, and hole EX_BRES_555_02A, which cut 37 metres grading 0.53 grams gold and 0.63% copper from 1,357 metres depth.

Fourth discovery

The discovery marks the company’s fourth significant find since 2023, following the Čoka Rakita, Dumitru Potok and Wedge Zone discoveries.

“This represents an extraordinary moment for DPM and our shareholders,” CEO David Rae said in the statement.

DPM is aiming to file a Commercial Discovery Certificate after exploration work ends in September, followed by a mining concession application and environmental permitting under Bulgaria’s regulatory framework.

Chelopech’s operating life was extended by four years to 2036 four months ago. It holds an estimated 15.3 million measured and indicated tonnes grading 2.18 grams gold, 9.19 grams silver and 0.64% copper for contained metal of 1.07 million oz. gold, 4.52 million oz. silver and 216 million lb. copper.

Inferred resources are pegged at 9.1 million tonnes grading 1.96 grams gold, 9.38 grams silver and 0.57% copper for contained metal of 573,000 oz. gold, 2.74 million oz. silver and 114 million lb. copper.

DPM forecasts Chelopech will produce between 150,000 and 170,000 oz. gold this year, as well as 29 million to 34 million lb. copper.