Interfax, Russia
Aug 23 2012

Armenia suspends Deno Gold explosives license

YEREVAN. Aug 23


The Armenian government has suspended Deno Gold Mining's license to
produce explosives and explosives equipment used in mining.

Artur Osikyan, the country's deputy police chief, presented the
government's decision to reporters.

He said the explosives permit was issued back in May 2005. Deno Gold
Mining itself asked the law enforcement bodies to annul the license.

The company's press office told Interfax that it knew nothing about
the decision and could not comment on it.

Deno Gold Mining Company, a 100% subsidiary of Canada's Dundee
Precious Metals, operates the Shahumyan polymetallic ore deposit,
which contains copper, gold, silver, zinc and lead. The deposit is
currently being developed by the deep mining method, although the
company is considering an open pit operation.

Last year, the company produced 519,104 oz of silver, 20 million
pounds of zinc and 3 million pounds of copper. It plans to process
550,000-610,000 tonnes of ore this year, compared to 581,852 tonnes in
2011.

Deno Gold exports all of its output.

Pr