Dynacor Gold Mines Inc.
TSX : DNG

Dynacor Gold Mines Inc.

November 22, 2011 07:00 ET

Dynacor Gold Mines Continues to Increase its Gold Processing Capacity and Reports an All-Time Record Production of 4,255 Ounces of Gold in October 2011

MONTREAL, QUEBEC--(Marketwire - Nov. 22, 2011) - Dynacor Gold Mines Inc. ("Dynacor" or "the Company") (TSX:DNG) is pleased to announce a further increase in its production capacity at it's 100% owned Acari ore processing plant in Peru. The plant's capacity has been upgraded twice in the last 90 days from 180 tpd to 200 tpd (see Press Release dated September 9, 2011) and since the second week of November from 200 tpd to 220 tpd.

During the second week of November, the plant's ore-throughput reached a peak of 225 tpd and has averaged a daily throughput of close to its new capacity level of 220 tpd, which is 18% higher than the average ore-throughput of 186 tonnes per day attained during Q3 2011. Dynacor Gold also, during the month of October, reached an all-time record gold production of 4,255 ounces and produced 7,708 ounces of silver as a by-product.

The increase in the gold processing capacity in November is due to the addition of a tertiary conical crusher upstream from the ball mills. Consequently, the ore fed into the ball mills has a smaller size and is more uniform than previously leading to an enhanced overall processing rate. As can be seen in Table 1 below the Company has been continually increasing the plant's capacity throughout 2011 while maintaining the gold recovery rate.

Table 1. 2011 Gold Processing - Acari Plant Operational Data

Quarter/
Month
Average ore
Throughput (tpd)
Gold Recovery
(%)
Plant head grade
(Au oz per tonne)
Gold Produced
(ounces)
Q1 2011 176.6 92.7 0.71 9,926
Q2 2011 175.3 92.7 0.78 11,808
Q3 2011 186.4 92.7 0.66 11,134
October 209.1 92.1 0.78 4,255

Mr. Jean Martineau, President and Chief Executive Officer recently commented "We are pleased with the continuing success that we are having from our Peruvian gold-ore processing plant. The Company is consistently increasing production on a quarterly basis which is reflected in our robust financial results and outlook. Our business plans in Peru are progressing well and we are confident that we will meet our year-end target of 45,000 ounces of gold."

2012 OUTLOOK

Demand for gold/silver and copper ore processing is continually growing in Peru and the Company will be able to meet this increasing need thanks to the construction of its new gold processing plant, located on the Pan American Highway south of Nazca, that was recently approved by the Board of Directors (see Press Release dated October 24, 2011). The Company has now submitted all the necessary documentation including an environmental impact assessment to the authorities and expects to get the final approval within the next few months. The new state of the art gold processing plant will be built with an initial capacity of 300 tonnes per day and has been designed to be readily upgraded to 430 tonnes per day. A budget of $4.5 million has been approved and will be funded through a combination of debt and working capital.

When the new 300 tpd capacity facility is operational, the Company will be able to produce approximately 60,000 ounces of gold per year at this plant.

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 as well as its 220 tpd gold ore processing mill. Dynacor's gold mill produces gold from the processing of ore purchased from local producers. 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 and CEO
    514-288-3224

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