Canada-based DPM Metals is moving its Čoka Rakita gold project in eastern Serbia from feasibility planning into the early stages of project execution by preparing to dismantle and relocate processing equipment from its Ada Tepe gold mine in Bulgaria.
The equipment transfer represents one of the clearest signals that Čoka Rakita is progressing beyond exploration and engineering studies toward physical mine development. As Ada Tepe approaches the end of its operating life, DPM plans to reuse its existing processing facilities, which were designed for approximately 850,000 tonnes of ore throughput annually, at the Serbian gold operation. Rather than significantly reducing the headline investment requirement, the relocation strategy is intended to reduce project execution risks, shorten procurement timelines and avoid exposure to lengthy delivery periods for specialised mining equipment.
DPM Reuses Bulgarian Gold Processing Infrastructure for Serbia Project
Čoka Rakita is located in the Crni Vrh mining area, around 35 kilometres northwest of Bor, one of Serbia’s most important mining regions. The underground gold project is fully owned by DPM through its Serbian subsidiaries, including Crni Vrh Resources and Dundee Precious Metals Avala. The company plans to dismantle the processing equipment at Ada Tepe, transport it to Serbia and reconstruct it as part of the future Čoka Rakita processing complex.
Mining processing plants contain numerous specialised systems with long manufacturing lead times, including crushers, grinding circuits, flotation equipment, gravity recovery units, thickeners, pumps, electrical systems and process-control technology. Reusing equipment with an established operating history could help DPM avoid delays associated with ordering and commissioning entirely new facilities. The relocation process will require detailed inspections, equipment cataloguing, preservation, cross-border transport, customs procedures, reconstruction and recommissioning once the machinery arrives in Serbia.
Čoka Rakita Gold Mine Project Economics Remain Strong
DPM’s definitive feasibility study, completed in November 2025, estimated initial development capital at $448 million, compared with $379 million in the earlier pre-feasibility study. The increase reflects updated engineering requirements, higher construction costs, infrastructure improvements and a more advanced project design rather than a decline in the quality of the mineral deposit.
The planned operation will consist of an underground mine feeding an 850,000-tonne-per-year processing plant. The project’s probable mineral reserves are estimated at 7.34 million tonnes grading 6.44 grams of gold per tonne, containing approximately 1.52 million ounces of gold.
The deposit’s high-grade characteristics place Čoka Rakita among the more attractive new gold developments globally, with the richest sections expected to support strong production levels during the initial operating years. DPM forecasts average annual production of approximately 148,000 ounces of gold, equal to around 4.6 tonnes, over the current mine life.
During the first five full years of production, output is expected to increase to approximately 189,000 ounces annually, or nearly 5.9 tonnes of gold per year. Total production over the current mine plan is projected at close to 1.3 million ounces, equivalent to about 41 tonnes of gold, with an operating life of approximately 10 years. Further exploration around the project area could potentially extend mine operations or provide additional deposits capable of supplying the central processing facility.
Low Operating Costs Support Project Competitiveness
The feasibility study estimates average all-in sustaining costs of $644 per ounce, placing Čoka Rakita among the lower-cost gold projects under development worldwide. The low-cost profile is expected to provide protection against gold-price volatility, inflationary pressures and rising operating expenses. Using a conservative gold price assumption of $1,900 per ounce, DPM calculated an after-tax net present value of $782 million at a 5% discount rate and an after-tax internal rate of return of 36%.
The projected payback period is considered relatively short for a new underground mining project. With international gold prices trading above the feasibility-study assumption, the project’s potential revenue generation and cash flow could be significantly higher, although construction costs, exchange rates and final execution schedules remain key factors.
Bulgarian Operations Provide Technical Advantage
DPM’s existing operations in Bulgaria, including the Ada Tepe mine and the larger Chelopech gold-copper mine, provide the company with regional technical expertise and experienced mining personnel. The company expects to transfer operational knowledge from Bulgaria to Serbia, including maintenance practices, mineral-processing experience and workforce training capabilities.
Future Čoka Rakita employees could receive training at DPM’s Bulgarian operations before the Serbian mine begins production, reducing commissioning risks and improving operational readiness. The ability to rely on an existing regional workforce is particularly valuable as mining companies across Europe face shortages of skilled underground miners, processing specialists and maintenance technicians.
New Infrastructure Still Required at Serbian Gold Mine
Although the processing equipment will be transferred from Bulgaria, Čoka Rakita will still require significant new infrastructure. The project will include underground mine development, access tunnels, ventilation systems, water management facilities, power infrastructure, workshops, laboratories, internal roads and a new tailings-management system.
The planned tailings facility will use a fully lined dry-stack design with capacity of approximately 3.9 million tonnes. The processing plant will use a combination of gravity concentration and conventional flotation, with expected overall gold recovery of approximately 88%. The operation is expected to produce saleable gravity and flotation concentrates rather than relying exclusively on doré gold production.
Construction Timeline Targets First Gold Concentrate in 2029
DPM expects to begin 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 commissioning the processing plant, the company plans to build an initial stockpile of approximately 80,000 tonnes of run-of-mine ore. The stockpile will help stabilise the commissioning process by ensuring consistent plant feed while underground production gradually reaches full capacity. First concentrate production is targeted for the first half of 2029. The updated schedule is more cautious than previous plans that anticipated production during 2028, reflecting the time required for spatial planning, environmental approvals, detailed engineering, construction permits and equipment relocation.
Environmental Permitting Progress in Serbia
A major regulatory milestone was reached after Serbian authorities launched preparations for 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 the mine, processing plant, transport infrastructure, electricity supply, water systems and supporting facilities. DPM has completed most baseline environmental and social studies, but additional approvals are required 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 facilities.
Maintaining coordination between permitting and engineering schedules will be critical. Delays could increase equipment storage costs, while premature dismantling of the Ada Tepe plant could create logistical challenges for the Serbian project.
Čoka Rakita to Support Serbian Mining Sector and Local Employment
Once operational, Čoka Rakita is expected to create more than 500 direct jobs, alongside additional employment opportunities during construction and through local suppliers. DPM intends to recruit Serbian workers wherever possible and provide specialised training through its existing mining operations in Bulgaria. The project is also expected to generate fiscal benefits for Serbia through mining royalties and taxation. Under the project assumptions, Serbia would receive a 5% mineral royalty based on mining revenue.
At average annual production of 148,000 ounces and a gold price of $1,900 per ounce, annual gross gold value would approach $281 million, implying a potential royalty contribution of roughly $14 million annually before adjustments for payable metals and other factors.
The feasibility study also assumes that Čoka Rakita could qualify for Serbia’s large-investment corporate tax incentive, potentially allowing an effective corporate income-tax rate of zero for up to 10 years, provided statutory investment and employment conditions are met.
Exploration Potential Could Extend Mine Life
Čoka Rakita forms part of DPM’s broader exploration position in the Crni Vrh and Timok regions. Nearby targets, including Dumitru Potok, Frasen and Rakita North, located within approximately two kilometres of the planned infrastructure, could provide additional mineralisation in the future. This exploration potential supports the concept of developing Čoka Rakita as an expandable processing hub. Additional discoveries near existing roads, power systems and processing facilities could extend plant utilisation beyond the initial reserve life and improve long-term project returns.
Serbia Gold Project Reflects New European Mining Strategy
The transfer of Ada Tepe equipment gives Čoka Rakita a distinctive development model, combining new underground mining infrastructure with an established processing system from DPM’s Balkan operations. The strategy reflects a broader shift in European mining investment, where access to equipment, regional expertise, construction timelines and supply-chain reliability are becoming increasingly important alongside the quality of mineral resources. For DPM, Čoka Rakita represents a major growth opportunity in Europe’s gold sector and a potential cornerstone asset in Serbia’s emerging mining industry.
