Dynacor: Tumipampa 2012 Diamond Drilling to Start in April
MONTREAL, QUEBEC–(Marketwire – March 5, 2012) – Dynacor Gold Mines Inc. (TSX:DNG) (Dynacor or the Company) is pleased to publish an exploration update on its Tumipampa project located in the Department of Apurimac, Peru. Having completed a thorough analysis of the 2011 exploration results, the recently published NI 43-101 technical report as well as the Company’s financial resources, Dynacor has now defined its 2012 exploration campaign. Fourteen (14) holes will be drilled in the skarn and in the gold veins to the south of the skarn adding up to a total of 6,100 meters and a cross-cut through the Manto Dorado will be excavated. The Company expects to start drilling and excavating the cross-cut in April, 2012.
2012 Exploration Campaign
Dynacor’s management has approved a US $2.3 million exploration budget to be spent exclusively on its Tumipampa property. Dynacor expects to fund the exploration with existing cash and cash flow from operations.
The primary focus of the 2012 exploration campaign is the southern part of the property as summarized below:
- Drilling of zone 4 of the skarn deposit: Zone 4 revealed the strongest magnetic anomaly and induced polarization (IP) levels (chargeability and resistivity) of the four skarn zones surveyed last summer (see Press Release dated September 19, 2011). Magnetic anomalies are due to the presence of magnetite (Fe3O4) which is a pathfinder for copper mineralization in these types of deposits. Drilling will begin immediately after the rainy season and nine (9) holes are planned adding up to a total of 4,100 meters at a cost of approximately $650,000.
- Excavation of a cross-cut adit and drifts: In order to further the definition of the known geological resources of the 500m x 380m section of the Manto Dorado structure to N1 43-101 compliant resources, the Company will drive a 300-meter long adit into the mountainside through the Manto Dorado and towards the Rosa vein (which in 2008 was intersected by a drill hole – 6.3 g/t Au over 2.8 meters). This first part of the cross-cut has been budgeted at $465,000.
- Drilling of the Manto Dorado and Rosa vein : Three (3) drill holes will target the Manto Dorado structure and two (2) holes will target the Rosa vein, adding up to a total of 2,000 meters at a cost of approximately $320,000. Drilling of the these two targets will commence in September 2012.
- Continue geological mapping and geochemical sampling: Detailed mapping and geochemical soil and rock sampling will be conducted in the southern part of Tumipampa. This surface exploration campaign is designed to help define the extent of surface mineralization and alteration of the newly discovered mineralized zone just west of the Manto Dorado. This zone was identified during last summer’s gephysical survey.
All the historical exploration data and results from previous exploration campaigns on Tumipampa have been summarized in the recently published 43-101 compliant technical report that is available on www.sedar.ca.
Regional Exploration Context
During the last few months, interest in the exploration of the entire region and specifically in the immediate area surrounding the Company’s Tumipampa property, has stepped up dramatically. Several large mining companies have staked claims close to Dynacor’s Tumipampa property including BHP Billiton, Buenaventura and two Chinese companies Golden Ideal Gold Mining and Super Strong Mining. The details are given in Figure 1, below. Furthermore, INGEMMET (Geology, Mine and Metallurgy Institute of Peru) has acquired, for exploration purposes, all the remaining available claims in the area totalling 588,500 ha. INGEMMET has, at a national level, identified four (4) sectors which it considers to be the most promising mining areas in Peru; Tumipampa is located within two (2) of these sectors. This recent surge of regional exploration interest is the result of the discovery and development of large scale Cu-Au projects in the area such as Las Bambas, Los Chancas and more recently Constancia and Haquira. Finally, Southern Copper Corp a subsidiary of Grupo Mexico., Tumipampa’s neighbour to the west, has recently added additional claims to the east of the Los Chancas copper skarn-porphyry deposit.
A map is available at the following address: http://file.marketwire.com/release/tumi_en.pdf
Community Relations & Environmental permits
Peruvian law requires that when a company wishes to carry out significant exploration activities such as the excavation of a cross-cut or diamond drilling, it must negociate an agreement with the local community before submitting a request for a new or extended exploration permit to the authorities. Dynacor is pleased to announce that in December, 2011, it signed a new social development agreement with the Pachaconas community. With this new agreement in hand the Company will obtain the renewal of its exploration permit. The agreement with the Pachaconas community and, consequently, the exploration permit, covers the entire southern part of the Tumipampa property as well as the most important part of the Skarn (zone 4).
Dynacor is currently negotiating with the community of Pampallacta with respect to the northern part of the property and trusts it will reach a similar agreement in the near future.
The Company expects to get its exploration permit for the southern part of Tumipampa in the next few weeks. Dynacor is planning to begin its 2012 exploration campaign in April 2012 which is the beginnning of the dry season and ideal weather conditions for exploration.
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).
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
514-288-3224 ext. 228
Dynacor Gold Mines Inc.
778-574-2806 / M: 604-562-1348