08:27 AM EDT, 09/13/2024 (MT Newswires) -- Dundee Precious Metals ( DPMLF ) on Friday said exploration drilling at its Coka Rakita project in Serbia showed high-grade gold mineralization.

The company said best results from the program included 74 meters testing at 27.3 grams per tonne of gold and 67 meters testing at 10.61 grams per tonne of gold and 0.23% copper.

Dundee is readying a pre-feasibility study for the site, expected by the end of next March, though the company is already planning to begin construction of a mine, with production expected to begin by 2028.

"We continue to unlock Coka Rakita's potential to add production growth and strong margins to our portfolio, with first production targeted for 2028. As we accelerate the project through our development pipeline, we are progressing the PFS, which remains on track for Q1 2025, and advancing permitting activities to support start-up of construction in 2026," Chief Executive David Rae said in a release.

The company said it is studying processing and infrastructure layout for the mining project and preparing an updated mineral resource estimate. It is also is also carrying out baseline environmental monitoring ahead of filing an environmental impact assessment it expects to file in the first quarter of 2026 .

Dundee shares closed up $0.30 to $13.34 on Thursday on the Toronto Stock Exchange.