Dynacor Gold Mines Inc.
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Dynacor Gold Mines Inc.

June 16, 2015 06:25 ET

DYNACOR: Veta Dorada (Chala) Ore Processing Plant: Construction Underway

MONTREAL, QUEBEC--(Marketwired - June 16, 2015) - Dynacor Gold Mines Inc. (TSX:DNG)(OTC:DNGDF) (Dynacor or the Corporation) is pleased to report that construction of its new ore processing facility (102,000 t/y) located in Chala in Southern Peru is now underway. Furthermore, the Board of Directors recently approved a revised total budget of 12.8 million US dollars of which 2.4 million US has already been invested.

There are at present six (6) different contractors working on site. Dynacor has contracted a specialized engineering firm (PREVCONSULT) that will coordinate and supervise the entire construction process. The detailed engineering plans as well as the earth moving program have been approved and the heavy duty machinery began working on the site on the 6th of June.

The specialized engineering firm will report directly to the general manager in Lima. The Company has also implemented a special committee headed by the CFO that monitors the construction budget and progress of the new ore processing plant.

Soon after receiving the construction permit, in March 2015, Dynacor signed a series of contracts to initiate/complete several additional infrastructure projects that are needed to ensure a smooth-running and efficient ore processing plant. They include:

  1. An office building to house Dynacor's administrative services and ore purchasing department.
  2. A building housing the kitchen and cafeteria
  3. An equipment warehouse and secure storage areas.
  4. Additional water wells, pumps and storage tanks, and
  5. An electrical transformer station and power distribution system.

All of the above additional projects are close to being completed.

The new Veta Dorada (Chala) plant will have an initial ore processing capacity of 300 tpd (102,000 t/y) and has been designed to be readily expanded to 600-tpd (204,000 t/y). The new facility is being built on a 135-hectare site that is part of a 200-hectare mining concession which was purchased by Dynacor in March 2011. This concession is located in the Department of Arequipa, District of Chala, in the heart of one of the most productive gold mining regions of Peru.

Jean Martineau recently stated regarding the new Veta Dorada plant "I am particularly satisfied to have finally been able to move forward on this ambitious project that is a very significant milestone for Dynacor. When the Veta Dorada plant is commissioned and in commercial operation the Company will be the largest and most efficient gold ore processor in Peru. I would like to specially thank the Board of Directors for their constant support and confidence during the last few years as we patiently guided this project through the rigorous administrative and permitting process. Finally, I would also like to underline the support that our long time shareholders have also expressed to me on various occasions as they patiently waited for this project to be approved by the Peruvian authorities."

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)

Website:http://www.dynacor.com

Twitter:http://twitter.com/DynacorGold

Facebook:http://www.facebook.com/pages/Dynacor-Gold-Mines-Inc/222350787793085

For more information, please contact: Dynacor Gold Mines Inc.

Shares outstanding: 36 446 667

Contact Information

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

    Dale Nejmeldeen
    Investor Relations
    Dynacor Gold Mines Inc.
    604.492.0099 / M: 604.562.1348
    604.608.9223 (FAX)
    nejmeldeen@dynacor.com