Dynacor: Custom Milling Operation Produces 9,926 Ounces of Gold in the First Quarter 2011
MONTREAL, QUEBEC–(Marketwire – April 14, 2011) – Dynacor Gold Mines Inc. (TSX:DNG) (“Dynacor” or “the Company”) (TSX:DNG) is pleased to provide an operations update for the first quarter of 2011. During Q1-2011, the Company’s custom milling operation produced 9,926 ounces of gold, an increase of 92% over the same period last year (5,179 ounces).
The Company is pleased with this result as the production rate is in line with management’s target for the first quarter 2011. Production in the first quarter of the year decreases due to the rainy season compared to the rest of the year. The Company was able to achieve this production level due to the strong cash flow position that allowed the stockpiling of ore in the fourth quarter of 2010. With the dryer season upon us, Dynacor expects from Q2, 2011 onwards to steadily increase its gold production and achieve its objective for the year which is 45,000 ounces.
Mr. Jean Martineau, President and CEO of Dynacor, stated: “We are very optimistic for 2011 based on Dynacor’s robust business model of generating cash flow from its growing custom milling business. The Company is on course to reporting one of its best Q1 results in terms of gold sales, cash flow and profitability. The Tumipampa 16,700 meter drilling campaign is in full motion and drill results will be released on an on-going basis throughout 2011.”
Mr. Joey Trombino, Vice-President and CFO of Dynacor stated: “Dynacor ended the 2010 fiscal year in a strong financial position, reporting $4.1 million in cash and short-term investments and working capital of $4.8 million and is expecting to report a profitable year beginning in Q1 2011.”
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.
President & CEO
Dynacor Gold Mines Inc.
Dynacor Gold Mines Inc.
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