Dynacor Gold Mines Inc.
TSX : DNG

Dynacor Gold Mines Inc.

March 07, 2011 06:30 ET

Dynacor Gold Mines: Tumipampa Exploration Update

MONTREAL, QUEBEC--(Marketwire - March 7, 2011) - Dynacor Gold Mines Inc. ("Dynacor" or "the Company") (TSX:DNG) is pleased to announce that its drilling campaign on its 100% owned Tumipampa property is proceeding as planned. A first drill hole has been completed and a 2nd drill hole will be finished shortly. The first set of core samples are currently being analysed and the results will be released as soon as they are available.

During Q4 2010, further surface channel samples were taken from the skarn bringing the total number of surface samples to 993. The Company wishes to release the full set of data which includes all of the new 2010 data. These results are discussed below. 

The Tumipampa Property and the Regional Context

The Tumipampa property is located 60 km south of the city of Abancay in the Department of Apurimac and approximately 500 km SE of Lima; its altitude varies between 4200 and 4800 meters and covers an area of 42 km² (4,200 hectares). It is located in a fast evolving mining region of Peru.

Within the regional geological context Dynacor's Tumipampa copper-gold project is located at the intercept between two important mineralized large scale corridors: the epithermal gold and silver corridor (which hosts important hydrothermal deposits such as Orcopampa, Ares, Arcata, Caylloma, Shila-Paula, Selene-Pallancata and the Antapite mines) and the Apurimac copper corridor that hosts world class porphyry-copper and base metals rich skarn deposits such as Las Bambas (Xstrata Copper), Los Chancas (Southern Copper Corp), Haquira (First Quantum/Antares Minerals), Constancia (Hudbay Minerals/Norsemont) and Tintaya (Xstrata Copper). 

Tumipampa Surface Samples 

In 2006, Dynacor discovered a series of mineralized skarn-like outcroppings in the northern part of its Tumipampa property. As of the 31st of December 2010, a total of 993 surface channel samples had been taken and analyzed from these outcroppings. This surface exploration has led to the definition of a skarn mineralized structure with an approximate dimension of 1.2 km by 4.1 km.

Four (4) zones have been defined (see Figure 1 below) based on 4 large outcroppings of the mineralized skarn. Table 1 below, details zone by zone the overall sampling scheme and results obtained. 

Table 1. Tumipampa: Summarized Data by Zone of the Surface Samples from Skarn
Zone Samples /Zone Percent of Total (Ntotal=993)   Number of Anomal Samples Percent of Anomal Samples     Anomal Metals
                 
ZONE 1 42 4 % 13 31 %   Au, Ag, Cu & Mo
                 
ZONE 2 290 29 % 104 35.9 %   Au, Ag, Cu, Mo & Zn
                 
ZONE 3 311 31 % 102 32.8 %   Au, Ag, Cu, Mo, Zn & W
                 
ZONE 4 350 35 % 135 38.6 %   Au, Ag, Bi, Cu, Mo, Zn & Pb
                 
Total 993 100 % 354 35.6 %   Au, Ag, Bi, Cu, Mo, Zn, W & Pb
                 

Zone 1 – In this zone there is a 400m by 400m outcropping of the skarn in which chalcopyrite, pyrite, specularite and epidote have been identified. 13 out of 42 samples were anomal (31%) in either gold, silver, copper or molybdenum. In 2008, an exploratory diamond drill hole was drilled in zone 1 and found: 15.3 g/t Au over a width of 4.90 m (see Press Release dated September 4, 2008). 

Zone 2 – In this zone there is a 700m by 150m outcropping of the skarn in which garnets, quartz veinlets, disseminated pyrite and chalcopyrite, magnetite, malachite and chrysocolla have been identified. 104 out of 290 samples were anomal (35.9%) in either gold, silver, copper, molybdenum or zinc. 

Zone 3 – In this zone there is a 1000m by 500m outcropping of the skarn in which epidote, iron oxides, chlorite and disseminated pyrite have been identified. 102 out of 311 samples were anomal (32.8%) in either gold, silver, copper, molybdenum, zinc or tungsten. In this area of the skarn there is evidence of colonial artisanal mining such as chimneys and short range access tunnels. 

Zone 4 – In this zone there is a 1000m by 600m outcropping of the skarn in which an abundance of pyrite and iron oxides has been identified within a matrix composed of an intrusive quartz monzonite rock. 135 samples (38.6%) of a total of 350 samples were anomal in either gold, silver, bismuth, copper, molybdenum, zinc or lead.

In Table 2 below, the number and percentage of anomal samples by metal are given using the following cutoff levels: Au (0.05 g/t), Ag (0.1 oz/t), Bi (0.05 %), Cu (0.1%), Mo (30 ppm), Pb (0.1%), WO3 (0.05%), Zn (0.05%). 

Table 2 Sampling data by metal for the 993 samples taken from the skarn
 
  Au (g/t)   Ag (oz/t)   Bi (%)   Cu (%)   Mo (ppm)   Pb (%)   WO3 (%)   Zn (%)
Cutoff value greater than or equal to 0.05   greater than or equal to 0.10   greater than or equal to 0.05   greater than or equal to 0.10   greater than or equal to 30.0   greater than or equal to 0.10   greater than or equal to 0.05   greater than or equal to 0.05
No. anomal samples 250   98   15   101   87   2   53   44
% anomal samples 25%   10%   2%   10%   9%   0%   5%   4%
Total samples 993   993   993   993   993   993   993   993
Minimum grade 0.002   0.003   0.000   0.000   0.100   0.000   0.000   0.001
Maximum grade 14.900   3.537   1.000   5.650   769.00   0.519   0.189   1.450
Average grade 0.268   0.092   0.007   0.150   12.333   0.004   0.009   0.023

Note: the total number of anomal samples in Table 2 above for all the metals (Nanomal =650) is higher than the total number of anomal samples given in Table 1 (Nanomal=354). This is because a given sample can be anomal in more than 1 metal. 

All the samples were assayed at ALS CHEMEX Laboratories in Lima, Peru. The samples were analyzed for gold by Fire Assay (FA-AA-Finish) and finished by Atomic Absorption Spectroscopy, as well as for copper by inductively coupled plasma (ICP-AES) and atomic emission spectroscopy (AES) for over limits. Strict QA/QC protocols were followed for all samples. 

Conclusions

Some general conclusions can be drawn from this large set of surface sample data:

  1. The percentage of anomal samples is significant for all 4 zones and is higher for zones 2 and 4.

  2. The number of anomal gold samples is higher than expected for a skarn. However considering the presence of high grade gold veins to the south of the skarn on the Tumipampa property this is not particularly surprising. 

  3. The number of anomal metals is higher for zones 3 and 4 than for zones 1 and 2.

  4. The presence of anomal tungsten was not expected and needs to be investigated further.

  5. The number of anomal metal signatures in zones 2, 3 and 4 (5, 6 and 7 metals respectively) is promising.

  6. Some surface samples had high grades of gold. Fifty-eight (58) samples had gold grades between 1.0 and 14.9 g/t and 27 samples had gold grades between 2 and 14.9 g/t. Of the latter 27 samples all but one came from zones 3 and 4. 

  7. Some surface samples had high grades of copper. Fifty-seven (57) samples had copper grades greater than 0.5% and 46 samples had copper grades greater than 1%.

  8. Finally, a number of samples had high grades of silver. Ninety-eight (98) samples had silver grades greater than 0.1 ounces per tonne and of those 28 samples had silver grades greater than 1.0 ounces per tonne.

Dynacor plans to invest about 5.45 million dollars in the drilling of its Tumipampa property during the next 18 months (see Press Release dated November 18, 2010). Currently, the Company is drilling 3 to 4 holes in zone 2. After the rainy season in April/May Dynacor expects to begin drilling zones 3 and 4 where considering the variety of minerals found and the high percentage of anomal surface samples there is a good potential for the discovery of a significant volume of economic ore. 

This Press Release has been read and approved by Alonso Sanchez, P. Eng. and Chief Geologist for Dynacor Gold Mines. He acts as the qualified person ("QP") for the Company, and is a geologist affiliated to the American Institute of Professional Geologists (AIPG).

Figure 1. Sampling Location: Northern Sector of the Tumipampa Property:

http://media3.marketwire.com/docs/dynacor.pdf

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 produces gold from its custom milling plant. 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.

Contact Information

  • Dynacor Gold Mines Inc.
    Jean Martineau
    President & CEO
    514-288-3224
    or
    Dynacor Gold Mines Inc.
    Fernand LeFrancois
    Investor Relations
    514-288-3224 / 418-822-4967
    or
    Dynacor Gold Mines Inc.
    Dale Nejmeldeen
    Investor Relations
    778-574-2806 | M: 604-562-1348
    604-608-9223 (FAX)
    nejmeldeen@dynacorgold.com