Dynacor Gold Mines Inc.
TSX : DNG

Dynacor Gold Mines Inc.

July 22, 2011 10:16 ET

Dynacor Gold Mines: Announces Record Gold (21,734 ounces) and Silver (40,416 ounces) Production From Custom Milling for the First 6 Months of 2011

MONTREAL, QUEBEC--(Marketwire - July 22, 2011) - Dynacor Gold Mines Inc. ("Dynacor" or "the Company") (TSX:DNG) is pleased to announce operating results for the second quarter of 2011. During Q2, the Company's custom milling operation produced a quarterly record of 11,808 ounces of gold, and during the first 6-months of 2011 a record of 21,734 ounces,up from 12,471 in 2010, an increase of 74 %. Silver production also increased to a record 40,416 ounces for the 6-month period up from 18,629 ounces in 2010 an increase of 117%.

Custom Milling Highlights:

  • Gold production in the second quarter of 2011 was 11,808 ounces a 62% increase in comparison with the second quarter 2010 (7,291 ounces);
  • Gold production in the first half of 2011 (21,734 ounces) increased by 74% in comparison with the first half of 2010 (12,471 ounces);
  • The average milling capacity during the first 6 months of 2011 remained stable at 176 metric tons per day, as well as the custom milling yield at 93.5%; and
  • Silver produced from custom milling also increased during the second quarter to 19,271 ounces up from 7,291 ounces in Q2-2010, and increased to a record 40,416 ounces for the 6-month period up from 18,629 ounces in 2010, an increase of 117%.

Jean Martineau, President and CEO of Dynacor, stated: "Dynacor reported its best quarter in gold production since inception of the Company. I am elated with achieving this milestone along with the fact Dynacor's Peruvian operating team is consistently delivering quarterly year to year increases in gold and silver production (see Table 1 below). We expect to increase the milling rate to 200 tpd by the end of 2011 and we are on course to attain our 2011 production guidance of 45,000 ounces of gold. Dynacor is planning to further increase its custom milling capacity in 2012 with an initial goal of 225 tons per day."

Table 1 GOLD & SILVER PRODUCTION FROM CUSTOM MILLING IN Q1 AND Q2 IN 2011 AND 2010

Quarter Q1 2011 Q2 2011 Total
Q1+Q2
Q1
2010
Q2
2010
Total
Q1+Q2
Gold (oz) 9,926 11,808 21,734 5,179 7,291 12,471
Silver (oz) 21,144 19,271 40,416 8,993 9,636 18,629

ABOUT DYNACOR GOLD MINES INC.

Dynacor is a gold exploration and mining company active in Peru through its subsidiaries since 1996. The Company's assets include the Acari, Casaden and Tumipampa exploration properties. Dynacor's gold mill produces gold by custom milling. Dynacor's strength and competitive advantage comes with the experience and knowledge the Company has developed while working in Peru. Its pride remains in maintaining respect and positive work ethics toward its employees, partners and local communities.

FORWARD LOOKING INFORMATION

Certain statements in the foregoing may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Dynacor, or industry results, to be materially different from any future result, performance or achievement expressed or implied by such forward-looking statements. These statements reflect management's current expectations regarding future events and operating performance as of the date of this news release.

Website: http://www.dynacorgold.com

Twitter: http://twitter.com/DynacorGold

Facebook: http://www.facebook.com/pages/Dynacor-Gold-Mines-Inc/222350787793085

Contact Information

  • Dynacor Gold Mines Inc.
    Jean Martineau
    President & CEO
    514-288-3224

    Dale Nejmeldeen
    Investor Relations
    Dynacor Gold Mines Inc.
    778.574.2806 or M:604.562.1348
    604.608.9223 (FAX)
    nejmeldeen@dynacorgold.com