The PFS put initial capex at US$211 million for an eight-year mine producing a total 547,000 ounces of gold at an all-in sustaining cost of $693/oz.

It was based on a reserve of 19.2 million tonnes at 1.07g/t of gold for 662,000oz, while the project has an additional 32.3Mt resource at 1.27 g/t Au for 1.3 million ounces.

The PFS estimated after-tax NPV7.5 at $102 million and IRR 20.6%, and Dundee said it had already identified a number of initiatives to optimise overall economics, which would be evaluated as part of the feasibility study due out in the first quarter of 2022.

It said the study would continue to focus on the oxide portion of the deposit but there was potential upside in the sulphide portion and from exploration activities.

New results included 40.5m at 2.83g/t gold at the Chocolate South oxide prospect and 36m at 5.26g/t, including 7m at 14.45g/t, at the new Coka Rakita sulphide prospect.

Recent results from the Chocolate target, 300m south-east of the main Bigar Hill deposit, had included 37m at 0.82g/t.

"With additional optimisation opportunities to enhance the project and very encouraging exploration results, we believe Timok represents an attractive opportunity to provide organic growth in a region where we have had a presence for many years," president and CEO David Rae said.

About 14,000m of drilling was planned for 2021.

Dundee had earmarked about $13 million to advance Timok this year.

The company, which has operations in Bulgaria and Namibia, had achieved record gold production in 2020 while copper was in line with guidance.

It ended the year with $149.5 million in cash and no debt.

Its shares (TSX: DPM) closed up 0.1% to C$8.66 yesterday, valuing it at $1.57 billion (US$1.25 billion).