Major new gold-copper ore body discovered at Chelopech, Bulgaria

A drilling campaign near the mountain town of Chelopech in Bulgaria has delivered exceptional results after tracing a gold-copper mineralised zone over more than 700 metres. Samples indicate at least 713 metres of mineralisation grading 1.31 grams of gold per tonne and 1.16% copper.

“These figures may not mean much to people outside the mining industry. For geologists and investors, however, this is a world-class result. Not because the grades are exceptionally high, but because such concentrations of metals have been identified across a massive interval exceeding 700 metres. It is precisely the combination of thickness and grade that can transform a drill hole into a future mine,” energy expert Boyan Rashev said.

The concession holder of the Chelopech gold mine is Canadian mining company DPM Metals, formerly known as Dundee Precious Metals, which operates some of Bulgaria’s largest mining assets.

The newly discovered high-grade gold-copper ore body is located only around one kilometre from the deposit currently under development.

Initial results from five drill holes reveal significant gold content in the explored area, although further exploration will be required to define the extent of the ore body.

“These results demonstrate both the continuity and scale of the target, with more than 713 metres grading 2.52 grams per tonne gold equivalent within a broad, continuous mineralised interval,” David Rae, President and Chief Executive Officer of DPM Metals, said in a company statement.

According to Rae, this represents the company’s fourth significant discovery since 2023. Additional drilling will now be undertaken to assess the economic potential of the area.

In February, the Canadian company announced that an updated mineral reserve estimate for Chelopech indicated that mining operations could continue until 2036, extending the projected mine life by four years from the previously estimated closure date of 2032. This would allow average annual production of around 110,000 ounces of gold over the next decade.

Rashev noted that while the GDXJ index of junior gold mining companies fell 4.4% in a single day, DPM Metals’ shares rose 3.18% following the announcement.

“Such a dramatic divergence illustrates how significant a single drill hole can be in this industry. Only a few months ago, the operational life of the Chelopech mine was extended once again following the confirmation of additional reserves, this time until 2036,” he added.

Benefits for local communities

The benefits of such a discovery extend well beyond the company’s shareholders. The Chelopech mine is among Bulgaria’s most important employers and a key driver of the local economy.

“Bulgaria recently adopted a new methodology for calculating concession fees, which will significantly increase the state’s share of the value of extracted metals. Under favourable market conditions, the effective concession payment could reach approximately 8% of production value. This means that any increase in reserves and extension of the mine’s lifespan will generate additional revenues both for the state budget and for municipalities,” Rashev said.

The discovery comes at a time when global demand for copper is expected to increase sharply, driven by electrification, electric vehicles, data centres and power transmission infrastructure.

“At the same time, major new deposits are becoming increasingly rare. That is why investors are paying such close attention to these results,” Rashev added.

According to him, the findings near Chelopech serve as a reminder that the mining industry is not a story of depletion but of discovery.

“When companies invest in extraction, technology and geological exploration, the resource base does not shrink. It grows. And with it, the benefits for society as a whole,” he said.

The EU’s Critical Raw Materials Act (CRMA), which entered into force in 2024, sets ambitious targets. By 2030, domestic extraction should cover at least 10% of the EU’s annual consumption of strategic raw materials, processing should account for 40%, and recycling for 25%.

The legislation also stipulates that no more than 65% of any strategic raw material at any stage of the supply chain should originate from a single third country.

Persistent misinformation

The modern Chelopech mine was developed by DPM Metals. For years, numerous myths and misleading claims regarding the operation have circulated on social media, often promoted by pro-Russian political groups.

These allegations typically concern gold extraction methods, concession payments and environmental impacts.

One recurring claim is that Bulgaria receives only 1–2% of the mine’s value through concession fees, whereas the effective rate can reach around 8%. Moreover, concession fees represent only one element of the payments made by the company to the public purse. The overall tax burden channels a substantial share of revenues back to the state.

Gold bullion is not produced at the mine because Bulgaria currently lacks an operating facility capable of safely extracting precious metals from this type of arsenic-bearing ore. Instead, the site produces copper and pyrite concentrates, which are exported for further processing abroad, primarily to the company’s metallurgical operations in Namibia.