(REUTERS) -- Canada's Dundee Precious Metals Inc said it received environmental approval from the Bulgarian government for its Krumovgrad gold project, sending its shares up as much as 8 percent.

A new feasibility study for the gold project is being finalized and is expected by November end, the company said in a statement.

We expect the study to indicate an operation capable of producing about 100,000 ounces of gold in concentrate per year over an eight year mine life with on-site operating costs of less than $400 per ounce, Dundee Capital Markets analysts led by Paul Burchell in a client note.

The Krumovgrad Gold project was awarded to the company's unit, Balkan Mineral & Mining, in June 2000.

Earlier this year, the Bulgarian government granted a 30- year concession to the project.

Shares of the company were trading up 63 Canadian cents at C$9.11 on Thursday morning on the Toronto Stock Exchange. It touched a high of C$9.13 earlier in the session.