MONTREAL, QUEBEC--(Marketwired - Feb. 24, 2014) - Dynacor Gold Mines Inc. (TSX:DNG)(OTC:DNGDF) (Dynacor or the Corporation) in order to inform its shareholders is releasing an operational and corporate update on its ore processing operations and exploration activities in Peru.
Ore Processing and Gold Exports
As reported in our January 29, 2014 press release, the Peruvian Government tax and customs authorities "SUNAT", in an effort to eliminate illegal gold mining in Peru, have significantly increased their requirements in terms of documentation to be provided to Customs in order to verify the legitimacy of the origin of the gold presented for exportation. These procedures are aimed at gold exporters who do not own and operate a mine. Dynacor produces gold from the processing of ore purchased from government registered ore suppliers from all over Peru. Dynacor is providing Customs authorities with all the additional documentation we have been asked for on an ongoing basis.
Dynacor President and CEO Jean Martineau recently stated "I am confident that the problem related to the export of our gold will be resolved shortly. In the meantime, we are managing and securing our cash reserves prudently in order to be able to meet all of our obligations both in Canada and in Peru."
Huanca Gold Processing Plant
The Company is pleased to announce that in early January 2014 the Huanca plant's gold ore processing capacity was increased by 8.5% from 230 tonnes per day to 250 tpd. Since then, the plant operated at 250 tpd during the month of January and into February without any problems.
Gold ore that was contracted in January but only delivered last week to the plant is currently being processed at 150 tpd. The plant will have finished processing this ore by the end of February.
Gold and Silver Production
In 2013 gold production reached a record 76,883 ounces an increase of 25.5% as compared to 2012 (61,274 oz.). Silver production in 2013 was 131,686 ounces. In Q4-2013 gold production was 19,220 ounces an increase of 3.3% as compared to Q4-2012 despite a decrease in the processed ore gold grades from 1.03 oz/t (Q4-2012) to 0.99 oz/t in Q4-2013.
Gold Production in 2013 and in 2012
Until the Company receives authorization to resume its gold exports and is able to operate its Huanca plant on a normal basis the Company cannot reasonably publish a gold production guidance for 2014.
Chala Construction Permit
There have been no new developments regards the Chala construction permit for the moment. However, considering the current situation with respect to illegal gold exports, Dynacor expects that the construction permit will be further delayed.
Exploration at Tumipampa
Dynacor has now completed its current underground drilling campaign focused on the high grade Manto Dorado structure and its associated veins. The assay data from the last 5 drill holes will be released shortly as soon as they are available.
Dynacor recently reported close to the surface disseminated gold mineralization (see Press Release dated September 27, 2013) at Tumipampa. This part of the Tumipampa property has been further explored in a recent geochemical and surface sampling study. Topology of the area has been mapped, the geology of the area has been studied and a series of grab samples have been taken. The results will be published in due course.
ABOUT DYNACOR GOLD MINES INC.
Dynacor is an ore processing and gold exploration and mining company active in Peru through its subsidiaries since 1996. The Company differentiates itself from pure exploration companies as it also generates income and cash flow from its wholly owned ore processing plant in Peru. The Company's assets include five exploration properties, including the Tumipampa property, as well as its 230 tpd gold and silver ore processing mill at Huanca. Dynacor's mill produces gold from the processing of ore purchased from ore producers from all over Peru. 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.
Dynacor Gold Mines Inc. (TSX:DNG)
Shares outstanding: 36,373,587