Dynacor Gold Mines Inc. (dynacor gold)
Symbol: DNG
Toronto Stock Exchange
MONTREAL, Nov. 22 /CNW Telbec/ - Dynacor Gold Mines Inc. (TSX: DNG) is pleased to announce that it has signed a drilling contract in order to commence a diamond drilling campaign at its Tumipampa property in Peru. Phase I of this campaign will begin in the next few days and will consist of 3,000 meters of drilling, during the next seven months.
The main objective of the drilling campaign is to explore and characterize 10 target structures that have been uncovered by a surface geological survey in 2006-2007 as well by earlier exploration work and a drilling campaign in 2002-2003.
Phase II of the drilling campaign will consist of a further 8,000 meters of diamond drilling. The company is confident that the overall 11,000 meters of drilling will yield sufficient data to determine an economic potential of the gold mineralization found within the Tumipampa Property.
THE TUMIPAMPA PROJECT
The Tumipampa project is located 500 km from the city of Lima, in the Circa district, Province of Abancay, Department of Apurimac. Dynacor Gold owns a total of 2,650 hectares which are adjacent to concessions being explored by the following companies: Meridian Gold, Bear Creek and Southern Peru.
The area is composed of quartzite and limestone of the Cretaceous, which contain important epithermal Au deposits intruded by the Apurimac Batholite, a well known metallotect that is related to many porphyric Cu and Au deposits in Peru.
During 2002 and 2003, a first exploration campaign was carried out in the NE area of the property, covering 300 hectares. Geophysical, surface geological and geochemical studies were carried out and a diamond drilling campaign (16 holes - total of 4,050 meters) was completed. The objective was to find a Au-Cu disseminated porphyry-type deposit in the quartzite. Results did not show gold dissemination, but the holes located near the outcrops of the veins showed significant gold grades. For instance, veins 1, Z, and A were intersected by drilling and the following gold assays were obtained: diamond drills HDD1 (7.33 g/t Au across 6 meters), HDD3 (8.20 g/t Au across 4 meters), and HDD6 (12.25 g/t Au across 2 meters).
In 2006, a reinterpretation and general review of the project as well as an initial survey in the field was done on the entire Tumipampa Property during which new veins were discovered and earlier known veins were further studied - all told adding up to a total of 10 structures with economical gold grades. The veins: 1, Z, 2007, San Pedro, Escondida, Esperanza, Porvenir, A, B and El Manto Dorado were also revealed by the presence of old surface work done during the colonial period. Channel sample analysis of the latter veins found grades between 1 and 25 g/t Au. Hydrothermal breccias in quartzite grading up to 1g/t Au were also identified.
In addition to the current drilling campaign, the company intends during 2007-2008 to carry out detailed geological mapping as well as geochemical and geophysical studies of the entire 2650 ha Tumipampa property. The objective of these studies is to locate possible extensions of the known veins that are covered by quaternary material, limestone and quartzite.
TWO MOST IMPORTANT MINERALIZED STRUCTURES
Manto Dorado
This surface structure was discovered when cutting access road for the 2003 drilling campaign. With an average width of 5 meters, this is the project's most important structure known to date. The access road revealed a 10-meter segment of the 200-meter known length of the structure. Most of the Manto Dorado(MD) structure appears to be covered by quaternary material. Its average direction is N30 degrees E and has a 35 degrees NW dip corresponding to the quartzite stratification. The geological make-up of the MD structure includes abundant pyrite, grey and white quartz and iron oxide.
Five channel samples taken every 2 meters from a 10-meter segment where the access path intersected the MD structure returned very significant gold and silver grades of gold and silver (see Table 1, below).
Table 1. Five channel samples from the Manto Dorado structure
------------------------------------------------------------------------- Sample Width (meters) Au (g/t) Ag (g/t) ------------------------------------------------------------------------- 55763 1.10 4.11 13.9 ------------------------------------------------------------------------- 55764 1.00 2.02 13.2 ------------------------------------------------------------------------- 55765 1.00 6.63 17.3 ------------------------------------------------------------------------- 55766 0.70 25.10 24.8 ------------------------------------------------------------------------- 55767 1.10 2.61 2.5 -------------------------------------------------------------------------
Vein A
This vein is another important structure found close to the Manto Dorado. The presence of old surface workings dating back to the Spanish colonial period can be readily observed over a total distance of 200 meters. The scale of these historical mining activities is indicative of the richness of this vein. For instance, analyses of samples taken from an old ore stockpile returned a grade of 12.70 g/t Au. Interestingly, Vein A was also intercepted by the diamond drill hole HDD6 (in 2003) at a depth of 60 meters and had a grade of 12.25 g/t Au across a 2-meter intercept.
UPDATE ON ACARI MILL
Gold production reached a record level in the 3rd Quarter, during which the Acari Gold Mill produced 7,477 ounces of gold, which as compared the production of 3,200 ounces in Q3-2006, represents an increase of 133%. In the nine-month period ending on the 30th of September 2007, the Acari Mill had produced 16,922 ounces of gold as compared to 8,601 ounces of gold in the comparable period in 2006, representing an increase of 96.7%.
Furthermore, Dynacor Gold has begun the construction of a second custom ore processing plant at Acari. This new mill, equipped with flotation units, will process copper, gold, and silver ores, which are abundant in the area. With this extension of the company's custom ore processing capacity, Dynacor Gold should be able to substantially increase its income stream in 2008.
COMPANY PROFILE
Dynacor Gold Mines Inc. is a gold exploration and mining company, that has been active in Peru since 1996. The Company's assets include the Acari, Casaden and Tumipampa exploration properties. Moreover, Dynacor Gold owns 100% of the Acari Mill from which it produces gold by custom milling.
Dynacor Gold's strength and competitive advantage comes with the experience and knowledge the Company has developed while working in Peru for over 11 years. Its pride remains in maintaining respect and positive work ethics toward its employees, partners and local communities.
Ivan Quiroz, Vice President Operations and Director, is a mining engineer and metallurgist, and a member of the Collegio de Ingenieros del Peru. He is Dynacor Gold's "Qualified Person" and is responsible for the technical information contained in this press release. Thus, Mr. Quiroz can testify to the precision and exactitude of the data and the mining and geological knowledge of the Tumipampa property as required by National Instrument 43-101 and its annexes with respect to the reporting and content of this press release.
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 Gold, 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.