USCCG’s Global Mining and Metals Practice Strikes Gold

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Operations management consultant retained by Dundee Precious Metals, Inc. to help implement improved maintenance management operating system at Armenia mining site.

We have a very capable team here in Kapan that we wanted to have every opportunity realize their and the mine's full potential.

USC Consulting Group Canada, LP (USCCG) announced today that it has been retained by Dundee Precious Metals, Inc. (DPM) to help implement an improved maintenance management operating system, and other enhancements, at its Deno Gold mine site in Kapan, Armenia.

The Deno Gold mining area is located in the southeastern corner of Armenia, 320 kilometers south of the capital city of Yerevan and forms part of the Tethyan tectonic belt. It is situated within the southeastern Syunik Region close to the Azerbaijan border. The Kapan plant site is located 1.5 kilometers east of the town of Kapan with the main mineralized zones occurring north of the town.

The complex consists of the underground Shahumyan mine, with rail and mechanized diesel transport systems; two primary crushing stations and ore stockpiles; a processing plant; and various other facilities that support the operation. The Shahumyan underground mine is a polymetallic deposit from which separate copper and zinc sulphide concentrates, both containing gold and silver by-products, are produced.

“We have a very capable team here in Kapan that we wanted to have every opportunity to realize their and the mine’s full potential,” said IIiya Garkov, Vice President of DPM and General Manager of DGMC. “That’s why we chose to partner with USCCG. They have a history of helping mining companies like ours get the most out of existing resources.”

In addition to implementing an improved maintenance management operating system (MMOS), the consultants will be looking for opportunities to generate significant maintenance operational improvement, working with local staff and management to define, develop, and implement enhanced Lean tools, techniques, procedures, and disciplines to minimize or eliminate delays or off-schedule situations that can adversely affect maintenance productivity and equipment availability.

“A majority of USCCG’s mining clients are continually looking for new and innovative ways to optimize costs and output,” said Partner and Global Mining and Metals Practice Managing Director David Shouldice. “Because we are able to bring a broader perspective with the associated tools to mining companies, we are able to add value beyond the traditional areas of operations improvement – in this case by optimizing maintenance operations and management.”

USCCG’s initial task will be to develop and implement a maintenance management operating system focused on underground production drills, loaders, and trucks; then, to develop necessary procedures, as part of the MMOS, to include the movement of parts and material from warehouse(s) to point of execution. In doing so, they will develop methods to understand capacities, performance, and maintenance requirements of the underground mining equipment in order to update and optimize current maintenance planning and scheduling-related techniques. Lastly, they will develop meaningful key performance indicators at all levels for supervision and management to highlight maintenance performance.

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About USC Consulting Group
Tampa, Florida-based USCCG is an independent management consulting firm with over 40 years’ experience in the area of business performance improvement and extensive experience in the mining and metals verticals. Historically, it has worked throughout the world for North America-based clients. The firm excels at operational effectiveness and offers a broad array of services that include asset management, Six Sigma, Lean transformation, supply chain optimization, process optimization, warehousing and logistics management, spend management, and training and facilitation. For more information, visit http://www.usccg.com.

About Dundee Precious Metals, Inc.
Dundee Precious Metals Inc. is a Canadian-based, international mining company engaged in the acquisition, exploration, development, mining, and processing of precious metals properties. The company's operating interests include its 100% ownership of Chelopech Mining EAD, its principal asset being the Chelopech mine, a gold, copper, silver concentrates producer located east of Sofia, Bulgaria; Namibia Custom Smelters (Pty) Ltd., a concentrate processing facility located in Tsumeb, Namibia; and Deno Gold Mining Company CJSC (DGMC), its principal asset being the Kapan mine, a gold, copper, zinc, silver concentrates producer located in southern Armenia. DPM's interests also include the Krumovgrad development stage gold property located in southeastern Bulgaria, near the town of Krumovgrad, and certain exploration and exploitation properties in Serbia. For more information, visit http://www.dundeeprecious.com/.

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