Dynacor Gold Mines Inc.
TSX : DNG

Dynacor Gold Mines Inc.

July 07, 2011 13:28 ET

Dynacor Gold Tumipampa Exploration Update

MONTREAL, QUEBEC--(Marketwire - July 7, 2011) - Dynacor Gold Mines Inc. ("Dynacor" or "the Company") (TSX:DNG) is pleased to report on the progress made during the first 6 months of 2011. Dynacor Gold currently has a 5.5 million dollar exploration campaign underway on its 100% owned Tumipampa property.

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). 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).

Exploration Highlights (January –June 2011)

  • A detailed geophysical survey of the skarn began in May and the field work was finished in the 3rd week of June. The complete study and the interpretation will be available by the end of July.

  • Seven (7) diamond drill holes were completed representing 1,830 metres of the campaign's 6,700 metres or only 27%.

  • Exploratory drill holes in zones 2, 3 and 4 of the skarn were done and the results are discussed below.

  • High anomal values of molybdenum were found in several intersects in a drill hole in zone 3 (values of up to 231 ppm Mo or 0,023% were found).

Geophysical Survey

Dynacor has contracted an independant specialized firm (Val D'Or Geophysics del Perú) to carry out a detailed geophysical survey and mapping of the Tumipampa skarn. The study will involve mapping magnetic anomalies and induced polarization. The geophysical survey covers an area of 1080 ha and is based on a grid of twenty 2.7 km long lines with a spacing of 200 meters between each line. The expected result is 3D mapping of the mineralized skarn structure which in turn will allow the company to resume its drilling targetting this time the most promising areas based on the geophysical data.

Drilling campaign

A total of 7 exploratory drill holes in the skarn were completed adding up to a total of 1,830 metres as follows:

  • Four(4) holes were located in Zone 2 of the skarn

  • One(1) hole was drilled in Zone 3 of the skarn, and

  • Two(2) holes were drilled in Zone 4

The exact locations and the mineralized intersects for each hole are given in Figure 1 and Table 2 below.The most significant results obtained are summarized below.

Skarn zone 2 – Four holes were drilled adding up to a total of 846.35 meters, the most significant mineralized core segments were as follows:

  • 12.75 meters with 0.227 % Cu, 0.107 oz/t Ag and 0.023 g/t Au

  • 10.61 meters with 0.732 % Cu, 0.487 oz/t Ag and 0.237 g/t Au

  • 10.60 meters with 1.196 % Cu, 0.634 oz/t Ag and 0.173 g/t Au

Skarn zone 3 – One hole was drilled with a total length of 179.4 meters. This hole intercepted part of the skarn structure and showed very significant molybdenum grades. The significance of this result is discussed below.

  • 1.3 meters with 0.216 Au g/t, 0.106 oz/t Ag and 0.488 % Cu

  • 7.40 meters with 231.4 ppm (0.0231%) Mo

  • 10.00 meters with 38.0 ppm (0.0038%) Mo

  • 8.20 meters with 85.4 ppm (0.0085%) Mo

Skarn zone 4 – Two holes were drilled adding up to a total of 804,7 meters, no significantly mineralized segments were found in these two drill holes however they did intercept the outer areas of the skarn structure and abundant pyrite and hematite were observed in segments of the core where anomal metal values were also found as follows:

  • 5.75 meters with 0.075 % Cu, 0.022% Zn and 0.044 oz /t Ag

  • 26.60 meters with 0.021 % Cu, 10 ppm Mo and 0.027 % Zn

  • 4.40 meters with 0.387 % Zn, 0.011 % Cu and 0.038 % Pb

  • 4.70 meters with 0.013 % Cu and 0.045 % Zn

Molybdenum results

Molybdenum is an indicator or pathfinder metal for skarn or porphry copper/gold deposits. Indeed, it is often found associated with the latter type of large scale copper/gold deposits. In Table 1 below some data on the copper/gold and associated molybdenum grades of four (4) large scale deposits that are curently being explored and developped within a 150 km range of Tumipampa.

Table 1 Molybdenum pathfinder metal for large skarn or porphry copper/gold deposits

Property Copper
resources
Molybdenum
resources
Gold
resources
Las Bambas 0.59 % - 0.86 % 0.02 % 0.05 – 0.07 g/t
Antapaccay 0.40% - 0.68 % 0.01 % 0.06 – 0.15 g/t
Constancia 0.35 % - 0.45 % 0.01 % 0.04 – 006 g/t
Haquira 0.54 % - 0.63 % 0.01 % 0.03 – 0.04 g/t
Compiled from http://miningalmanac.com/

Although no meaningful comparaison can be made between our drilling data and the data given in Table 1 above since we have too little drilling data at present, it is interesting to recall our previously reported surface sample data (see Press Release dated March 7, 2011). Of a total of 993 surface samples, 101 samples were anomalous in copper with grades between 0.1 – 5.65% Cu, 250 samples were anomalous in gold with grades between 0.05 – 14.9 g/t Au and 87 samples were anomalous in the pathfinder metal molybdenum with grades between 0.003 and 0.0769% Mo.

These initial drilling results are encouraging and the Company plans to aggressively pursue its drilling campaign in the next few months once the results from the geophysical survey are available and that new drilling targets have been defined based on the geophysical data. Further drilling results and the geophysical survey results will be released as the exploration campaign goes forward.

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).

Table 2. 2011 Drilling data Tumipampa HDD-1 to HDD-7

Drill Au, Ag, Cu and Mo Mineralisation
Hole Id Skarn
Zone
drilled
Total
Length
(m)
Depth
Intersection
(m)
Width
(m)
Au
(g/t)
Ag
(oz/t)
Cu
(%)
Fe
(%)
Mo
(ppm)
Pb
(%)
Zn
(%)
HDD 1 ZONE 2 356.75 137.40 - 150.15 12.75 0.023 0.107 0.227 5.299 2.459 0.006 0.014
HDD 1-1 ZONE 2 195.29 - 205.90 10.61 0.237 0.487 0.732 2.595 2.233 0.019 0.005
HDD 2 ZONE 2 267.50 outside the skarn -- -- -- -- -- -- -- --
HDD 3 ZONE 2 123.90 outside the skarn -- -- -- -- -- -- -- --
HDD 4 ZONE 2 98.20 21.00 - 31.60 10.60 0.173 0.634 1.196 13.402 35.506 0.008 0.018
HDD 5 ZONE 4 292.00 0.00 - 5.75 5.75 0.048 0.044 0.075 8.504 6.470 0.004 0.022
HDD 5-1 ZONE 4 28.80 - 55.40 26.60 0.023 0.022 0.021 4.145 9.891 0.004 0.027
HDD 6 ZONE 4 512.70 17.50 - 21.90 4.40 0.018 0.014 0.011 2.809 4.364 0.038 0.387
HDD 6-1 ZONE 4 37.20 - 41.90 4.70 0.073 0.015 0.013 2.484 7.426 0.003 0.045
HDD 7 ZONE 3 179.40 57.70 - 65.10 7.40 0.067 0.045 0.001 7.565 231.453 0.005 0.008
HDD 7-1 ZONE3I 65.10 - 75.10 10.00 0.006 0.018 0.005 8.915 38.025 0.005 0.007
HDD 7-2 ZONE 3 75.10 - 83.30 8.20 0.019 0.030 0.004 9.729 85.360 0.011 0.011
HDD 7-3 ZONE 3 83.30 - 84.60 1.30 0.216 0.106 0.488 12.520 4.000 0.013 0.011
Note. Anomalous and economic grades are shown in bold

The location of 2011 drill holes HDD1 to HDD7 and some surface channel sample data are available at the following link: http://media3.marketwire.com/docs/dynacormapeng0707.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'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