Dynacor Gold Mines Inc.
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Dynacor Gold Mines Inc.

June 11, 2015 06:15 ET

Dynacor-Tumipampa: Underground Drilling Results on the Lisa Vein and the Manto Nazareno Return High Gold and Copper Grades

MONTREAL, QUEBEC--(Marketwired - June 11, 2015) -

Editors Note: There are three photos associated with this press release.

Dynacor Gold Mines Inc. (TSX:DNG)(OTC:DNGDF) (Dynacor or the Corporation) is pleased to report the first underground drilling results on the Lisa vein, Manto Nazareno and the Manto Dorado gold mineralized structures. Significant assay results from the underground drilling include, 7.41 g/t Au over 2.49 meters (true width-TW) for the Lisa vein including 22.21 g/t Au over 0.6 meters (TW), and for the Manto Nazareno included 2.24 g/t Au, 2.8 oz/t Ag and 4.43% Cu over 3.5 meters (TW) including 5.44 g/t Au, 7.14 oz/t Ag and 11.87% Cu over 1.3 meters (TW).

Furthermore the Corporation is pleased to announce that it has begun the excavation of a 2nd cross-cut 485-NW at its flagship Tumipampa property (see Photo 1).

Underground Drilling Results

The underground drilling results for the first 4 drill holes are given in Table 1, below. Their location is shown on the Figures 1 and 2. All the holes were drilled from drilling station no. 2 at the 530-meter mark. Drill hole HDD 01-15 intercepted the Lisa vein and returned high grades of gold averaging 7.41 g/t Au over 2.49 meters (true width-TW) including 12.81 g/t Au over 0.6 meters (TW) and 22.21 g/t Au over 0.6 meters (TW). These high gold grades were obtained approximately 50 meters deeper than the intersection between cross-cut 330NW and the Lisa vein (see Press Release dated May 7, 2015) and confirm that this vein is mineralized at depth.

Drill hole HDD 03-15 intercepted the Manto Dorado and Manto Nazareno structures and also intercepted a previously unknown branch of the Manto Nazareno structure that returned 22.02 g/t Au over 0.15 meters (TW).

Drill hole HDD 04-2015 intercepted the Lisa vein and the Manto Nazareno returning an average grade of 2.24 g/t Au, 2.8 oz/t Ag and 4.43% Cu over 3.5 meters (TW). This well mineralized segment includes assays of 5.44 g/t Au, 7.14 oz/t Ag and 11.87% Cu over 1.3 meters (TW). The Cu (observed as chalcopyrite), Au and Ag mineralization that has been discovered in the Manto Nazareno in drill hole HDD 04-2015 is very promising and will lead to further underground exploration by the excavation of drifts and chimneys in order to further define the mineralization of this Manto.

Because of the high grades of Ag and Cu in drill hole HDD 04-2015, its mineralization can also be expressed as gold equivalent ounces per tonne. Using the value of Ag and Cu per unit and by converting this into an equivalent amount of gold per unit, total mineralization can be expressed as gold equivalent ounces per tonne. Thus, drill hole HDD-04 2015 returns a gold equivalent grade of 0.336 ounces per tonne (10.45 gold equivalent grams per tonne) over 3.5 meters (TW) including 0.874 gold equivalent ounces per tonne (27.18 gold equivalent grams per tonne) over 1.3 meters (true width).

Table 1. First four (4) underground drill holes from drilling station # 2 located at the 530-meter mark in cross-cut 330 NW (see Figure 1)

Drill hole Total
length
(m)
Interval
(m)
Structure True
Width
(m)
Au
g/t
Ag
(oz/t)
Cu
(%)
HDD 01-15-850 200.00 39.80 - 42.30 M. NAZARENO 2.50 0.380 0.385 0.01
HDD 01-15-850 88.80 - 89.40 LISA VEIN 0.60 12.81 0.302 0.03
HDD 01-15-850 89.40 - 90.40 LISA VEIN 1.00 0.009 0.016 0.01
HDD 01-15-850 90.40 - 91.00 LISA VEIN 0.60 22.21 1.019 0.03
HDD 01-15-850 91.00 - 91.80 LISA VEIN 0.80 0.503 0.080 0.01
HDD 01-15-850 88.80 - 91.80 AVERAGE LISA VEIN 2.49 7.141 0.291 0.02
HDD 01-15-850 123.70 - 126.40 M. DORADO 2.19 0.437 0.228 0.01
HDD 02-15-850 169.60 32.90 - 34.20 M. NAZARENO 1.29 0.030 0.009 0.00
HDD 02-15-850 91.10 - 92.30 M. DORADO 1.20 0.011 0.013 0.00
HDD 03-15-850 157.10 35.50 - 35.65 M.NAZARENO BRANCH 0.15 22.02 0.537 0.02
HDD 03-15-850 38.25 - 38.95 M. NAZARENO 0.57 0.545 0.027 0.02
HDD 03-15-850 101.80 - 103.35 M. DORADO 1.45 0.318 0.506 0.23
HDD 04-15-850 173.20 49.60 - 51.80 LISA VEIN 2.20 0.071 0.046 0.00
HDD 04-15-850 64.40 - 65.40 M. NAZARENO 1.00 0.191 0.093 0.00
HDD 04-15-850 65.40 - 66.60 M. NAZARENO 1.20 0.475 0.373 0.05
HDD 04-15-850 66.60 - 67.90 M. NAZARENO 1.30 5.442 7.137 11.87
HDD 04-15-850 64.40 - 67.90 AVERAGE
M. NAZARENO
3.50 2.239 2.806 4.43
Note: Highlighted data for HDD 01 and HDD 04 gives sub-intervals for the Lisa vein and the Manto Nazareno showing the higher Au and Cu grade intervals.

Cross-cut 485NW

Cross-cut 485NW is oriented N72W and is located 233 meters to the NE relative to cross-cut 330NW and 37 meters below at an elevation of 4315 meters ASL. Excavation of this new cross-cut began on June 1st and Dynacor is planning to excavate 420 meters in total during this campaign. The objective is to explore the north-east extensions at depth of the Manto Dorado, the Manto Nazareno and the Lisa vein (see Figure 1). From the cross-cut the Corporation will also excavate drifts and chimneys into these mineralized structures and has also planned a series of 10 underground drill holes.

Cross-cut 330NW

During this exploration campaign Dynacor is planning to advance Cross-cut 330NW by a total of 320 meters. At present the cross-cut is at the 535-meter mark and a further 234 meters will be excavated in order to reach the Rosa, Tumi and Sorpresa veins (see Figure 2). The Corporation is currently upgrading the ventilation system for this cross-cut and will start excavating as soon as this has been completed. Drilling station no.2 (see Figures 1 and 2) has been excavated at the 530-meter mark of the cross-cut and to date 9 underground drill holes have been drilled. The results for the first 4 drill holes are reported above.

Towards a NI 43-101 Report

The complete set of results we have obtained from the cross-cut and from the underground drilling to date demonstrate the lateral and at depth structural continuity and mineralization of the Mantos and the Lisa vein. The erratic grades encountered are typical for these types of structures but their continuity is the key factor that will enable us to calculate a NI 43-101 compliant resource. This report will be published as soon as all the planned cross-cuts, drifts, chimneys and underground drilling have been completed (see below).

As compared to a more classical infill drilling campaign from the surface, Dynacor's approach to defining resources at Tumipampa, by using a combination of cross-cuts, drifts, chimneys, underground drilling and limited surface drilling has several advantages, namely:

  • The continuity and gold and copper mineralization in structures such as veins and mantos with erratic grades can be evaluated with greater exactitude and higher categories of 43 101 compliant resources and reserves can consequently be defined and will lead to a higher valuation by the market of these reserves and resources;
  • The exploration infrastructure (cross-cuts, drifts and chimneys) can be used subsequently to extract mineralized ore directly without any further significant investment; and
  • Bulk samples of the mineralized rock are immediately available for metallurgical testing and processing.

Underground Exploration Outlook

In 2015, Dynacor's exploration campaign is very ambitious and the Corporation has planned the following:

  1. Excavation of 740 meters of cross-cuts: 420 meters for the new cross-cut 485NW and 320 meters for cross-cut 330NW.
  2. Excavation of 1260 meters of drifts and chimneys in order to better define the Manto Dorado, Manto Nazareno and the Lisa, Rosa, Tumi and Sorpresa veins.
  3. Thirty-three (33) underground drill holes from three (3) different drilling stations: 2 in cross-cut 330NW and one in cross-cut 485NW.

At the present time, results from a further five (5) drill holes are pending and will be published as soon as the assay results have been received.

Sample Analysis and QA/QC procedures

The samples are sent to the internationally certified laboratory Certimin S.A. for analysis and checks of mineralized sections are made by sending reject samples to ALS Peru S.A. Samples were assayed by ICP analysis and for assays greater than 10 g/t Au a gravimetric FAA finish assay is used. Standards, blanks and duplicates are used in the sampling process as part of the QA/QC for the sampling in the cross cut. Additional check samples were sent to SGS del Peru S.A.C for carrying out spot check analysis verifications. The program, sampling, collection of samples and the QA/QC is implemented and followed by Alonso Sanchez, Chief Geologist for Dynacor Gold Mines, B.Eng.

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 Corporation and is a geologist affiliated to the American Institute of Professional Geologists (AIPG).

ABOUT DYNACOR GOLD MINES INC.

Dynacor is a gold ore-processing and exploration Corporation active in Peru since 1996. The Corporation differentiates itself from pure exploration companies as it generates income from its wholly owned ore-processing plant. Dynacor's basic share count at 36.4 million outstanding is in the lowest quartile of the resource sector. The Corporation's assets include three exploration properties, including the advanced high-grade gold Tumipampa property and an operating 85,000 TPA gold and silver ore processing mill at Metalex-Huanca. The Corporation recently obtained its permit to construct a brand new 300 tpd mill in Chala Peru. This represents an important milestone for the Corporation's future growth. The Corporation's strength and competitive advantage comes with the experience and knowledge it 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)

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Contact Information

  • Dynacor Gold Mines Inc.
    Jean Martineau
    President and CEO
    514-393-9000 Ext. 228

    Dynacor Gold Mines Inc.
    Dale Nejmeldeen
    Investor Relations
    604-492-0099 / M: 604-562-1348
    nejmeldeen@dynacor.com
    www.dynacor.com