Dynacor: June 2012 Record Gold Production
MONTREAL, QUEBEC–(Marketwire – July 18, 2012) – Dynacor Gold Mines Inc. (TSX:DNG) (Dynacor or the Company) During the past 6 months Dynacor’s ore processing plant at Acari has been operating at close to its maximum capacity of 220 tonnes per day and continues to generate a strong cash flow for the Company. In the month of June 2012, Dynacor produced an all-time record of 5,327 ounces of gold as compared to its previous record in February 2012 of 4,747 ounces of gold representing an increase of 12.2%.
During the second quarter the Company produced 12,384 ounces of gold. Production slowed down for a 2-week period in May when the Company stopped purchasing ore in order to assess the impact of the new legislation on its ore purchasing activities and ensure compliance. During this period, the Company processed the low grade ore it had in its inventory albeit at a slower rate.
Ore processing data for gold in Q1 and Q2 2012 is summarized in Table 1 below. Silver production in Q1 and Q2 2012 was 41,112 and 34,529 ounces, respectively. The Company is confident that its production for 2012 will meet or exceed its previously published 2012 guidance of 50,000 ounces of gold.
Table 1 Gold Ore Processing during Q1 and Q2-2012
2012/2013 Outlook for Gold Ore Processing
In order to maintain its growth and gold production momentum, in October 2011, the Company decided to build a new ore processing plant at Chala in southern Peru. As required by the Peruvian mining laws two community participative workshops were sucessfully held in Chala in early 2012. The necessary land for the new plant and tailing ponds has been acquired. An environmental impact study has been submitted to the authorities and the necessary hydrological study realised. The engineering study for the new plant is now complete. The company is awaiting the environmental permit in order to apply for the construction permit, which is the last step to build the new facility.
This new gold ore processing facility will have an initial capacity of 300 tonnes per day and designed to be readily upgraded to 430 tonnes per day. When this new plant comes on stream Dynacor’s gold production from ore processing will increase substantially.
ABOUT DYNACOR GOLD MINES INC.
Dynacor is a gold exploration and mining company active in Peru through its subsidiaries since 1996. The Company differentiates itself from pure exploration companies as it also generates income and cash flow from its wholly owned ore processing plant in Peru. The Company’s assets include six exploration properties, including the Tumipampa property, along with its recently upgraded 220 tpd ore processing mill at Acari. Dynacor’s mill produces gold from the processing of ore purchased from local producers. 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 and CEO
T: 514-288-3224 ext. 228
Dynacor Gold Mines Inc.