Canada-based DPM Metals is moving its Čoka Rakita gold project in Serbia closer to development by preparing to relocate processing equipment from its Ada Tepe gold mine in Bulgaria to the planned mining operation in eastern Serbia. The equipment transfer represents a major step as DPM transitions Čoka Rakita from feasibility studies and technical planning toward construction preparation. With Ada Tepe nearing the end of its operational life, DPM plans to dismantle and reuse the Bulgarian mine’s processing facilities, which have a nominal capacity of 850,000 tonnes of ore per year, for the Serbian project.
The company said the approach is intended to reduce execution risks, shorten procurement timelines and limit exposure to lengthy delivery periods for specialised mining equipment. Rather than significantly lowering the overall capital requirement, the relocation strategy is designed to improve project implementation efficiency.
Serbian gold project moves toward construction phase
Čoka Rakita is located in the Crni Vrh area, around 35 kilometres northwest of Bor, within one of Serbia’s most established mining regions. The underground gold project is fully owned by DPM through its Serbian entities, including Crni Vrh Resources and Dundee Precious Metals Avala.
Under the current plan, processing equipment from Ada Tepe will be dismantled in Bulgaria, transported to Serbia and rebuilt as part of the future Čoka Rakita processing complex. The transferred facilities will include key components of a modern mineral-processing operation, such as crushing systems, grinding circuits, flotation equipment, gravity concentration units, thickeners, pumps, electrical systems and process-control infrastructure.
Because many mining components require long manufacturing lead times and extensive factory testing, DPM expects that reusing existing operating equipment could help protect the Serbian project schedule.
DPM already operates the Ada Tepe gold mine and the larger Chelopech gold-copper mine in Bulgaria. The company’s regional operations provide access to experienced technical teams, maintenance specialists and processing expertise that can support development of Čoka Rakita. The proximity of its Bulgarian assets will also allow DPM to train future Serbian employees before commercial production begins.
Feasibility study outlines high-grade underground gold operation
The definitive feasibility study completed in November 2025 estimated initial development capital at $448 million, compared with $379 million outlined in the previous pre-feasibility study. The higher investment estimate reflects updated engineering work, increased construction costs, infrastructure requirements and a more advanced project configuration.
Čoka Rakita is planned as an underground mining operation supplying ore to a processing plant with annual throughput of 850,000 tonnes. The project contains probable mineral reserves of 7.34 million tonnes grading 6.44 grams of gold per tonne, representing approximately 1.52 million ounces of contained gold.
The deposit’s high grades place it among the more significant new gold developments under preparation, with the highest-grade central zone expected to contribute strongly during the early operating years. Average annual production is forecast at approximately 148,000 ounces of gold, equivalent to around 4.6 tonnes, over the planned mine life.
During the first five full years of production, output is expected to increase to approximately 189,000 ounces annually, or about 5.9 tonnes of gold per year.
Total production under the current mine plan is expected to reach nearly 1.3 million ounces, or approximately 41 tonnes of gold, over an operating period of around 10 years. Further exploration around Čoka Rakita could support potential extensions of the mine life or the development of nearby satellite deposits.
Project economics supported by low operating costs
The feasibility study estimates average all-in sustaining costs of $644 per ounce, placing Čoka Rakita among lower-cost gold projects based on the company’s assumptions. Using a reference gold price of $1,900 per ounce, DPM calculated an after-tax net present value of $782 million at a 5% discount rate.
The project’s after-tax internal rate of return was estimated at 36%, with a relatively short investment payback period compared with many new underground mining developments. The feasibility model also shows stronger economics at higher gold prices. However, future project performance remains dependent on construction costs, exchange rates and the final development timeline.
Equipment relocation links Bulgarian operations with Serbian expansion
The transfer of Ada Tepe equipment connects DPM’s mature Bulgarian mining operations with its next major Balkan growth project. Operating experience from Ada Tepe provides the company with knowledge of maintaining and running a processing facility of the same planned annual capacity as Čoka Rakita. Existing equipment with a documented operating history could help reduce commissioning risks caused by delays in manufacturing and delivery of new machinery.
The relocation process will involve several technical stages, including equipment inspection, cataloguing, dismantling, preservation, cross-border transportation, customs procedures, reconstruction, integration with new infrastructure and recommissioning. Only part of the processing infrastructure can be reused. Čoka Rakita will still require extensive new mining and surface facilities, including underground development, access declines, ventilation systems, water management infrastructure, power connections, internal roads, workshops, laboratories and a new tailings facility. The project design includes a fully lined dry-stack tailings storage facility with capacity of approximately 3.9 million tonnes.
Gold recovery and production timeline
The planned processing facility will use gravity concentration and conventional flotation, with combined gold recovery estimated at approximately 88%. The operation is expected to produce saleable gravity and flotation concentrates rather than relying solely on doré production. DPM plans to complete preparatory and early works during the second half of 2026, subject to permitting progress. Full construction is scheduled to begin in early 2027, with first underground ore expected to reach the surface during the second half of 2028.
Before processing begins, the company plans to build an initial stockpile of approximately 80,000 tonnes of run-of-mine ore. The stockpile is intended to provide stable plant feed during commissioning while underground mining gradually increases toward planned production levels. First concentrate production is targeted for the first half of 2029.
The updated schedule is more conservative than previous expectations that anticipated production in 2028, reflecting the additional time required for spatial planning, environmental approvals, detailed engineering, construction permits and equipment relocation.
Permitting framework established for Čoka Rakita development
A key regulatory milestone was reached after Serbian authorities began preparing the Special Purpose Spatial Plan for the Čoka Rakita mining area. The planning process includes a strategic environmental assessment and will define the framework for development of the mine, processing plant, roads, electricity supply systems, water infrastructure and supporting facilities.
Most environmental and social baseline studies have already been completed, although several regulatory approvals remain necessary before full construction can proceed. These include environmental impact assessment procedures, approval of the main mining design, land-access arrangements and construction permits for individual project components. Maintaining coordination between permitting and engineering remains critical, as delays could increase storage, preservation and logistics costs for transferred equipment.
Employment, fiscal impact and infrastructure requirements
Once operational, Čoka Rakita is expected to create more than 500 direct jobs, with additional employment generated during construction and through local suppliers. DPM plans to recruit Serbian workers where possible and provide training through its existing Bulgarian operations at Chelopech and Ada Tepe.
The workforce strategy is aimed at addressing the shortage of specialised underground mining, processing and maintenance personnel across European mining markets. Training employees within established DPM operations could reduce reliance on external contractors during commissioning and production ramp-up.
Under the project’s fiscal assumptions, Serbia is expected to receive a 5% mineral royalty calculated on mining revenue. At average production of 148,000 ounces per year and a gold price of $1,900 per ounce, annual gross gold value would approach $281 million, implying a theoretical royalty contribution of around $14 million annually before adjustments related to payable metals and other factors. The feasibility model assumes Čoka Rakita may qualify for Serbia’s large-investment corporate tax incentive, potentially resulting in an effective corporate income tax rate of zero for up to 10 years, provided statutory investment and employment conditions are maintained.
Exploration potential around the Crni Vrh area
Electricity infrastructure will be a key requirement for the project, with the processing plant, underground ventilation, pumping, crushing and grinding operations requiring a reliable high-voltage connection. Power infrastructure must be completed and tested before integrated commissioning begins. Čoka Rakita forms part of DPM’s wider exploration position in the Crni Vrh and Timok region. Nearby exploration targets, including Dumitru Potok, Frasen and Rakita North, are located within approximately two kilometres of planned project infrastructure and could potentially provide additional ore sources for the central processing facility.
The exploration potential supports the development of an expandable processing hub, allowing future discoveries near existing roads, power systems, water infrastructure and processing facilities to potentially extend operations beyond the initial reserve life. The combination of new underground mining infrastructure in Serbia and reused processing assets from Bulgaria gives Čoka Rakita a development model built around regional integration, existing operational expertise and the availability of established mineral-processing equipment.
