Dynacor Gold Mines Inc. (dynacor)
Symbol: DNG
Toronto Stock Exchange (TSX)
MONTREAL, April 1 /CNW Telbec/ - Dynacor Gold Mines Inc. (Dynacor TSX:DNG) is pleased to announce its financial results for the fourth quarter and the period ended December 31, 2007. Highlights are:
- production at the Acari plant, acquired on May 1st, 2007, reached a record level of 25,789 ounces of gold for the twelve-month period ended December 31, 2007; - gold sales reached a record of 19,322 ounces, (from May 1st, 2007 until December 31, 2007); - earnings before income taxes of $697,734 for the period; - net earnings per share of $0.03 ($0.02 fully diluted) for the period; - total assets amounting to $19.9 M; - shareholder's equity of $17.4 M; and - cash position of $2.0 M. Dynacor acquired from Malaga Inc., through an agreement dated May 1st, 2007, all the issued and outstanding shares of Minera Dynacor del Peru S.A.C, a wholly-owned Peruvian subsidiary of Malaga Inc., as well as the gold assets of Malaga Inc. held by the Peruvian subsidiary. Therefore, Dynacor did not have any activities prior to May 1st, 2007, thus having an impact on the results for the eight-month period. Dynacor reports its financial results for the fiscal year ended period ended December 31, 2007 (all currency figures appear in Canadian dollars unless otherwise specified). The consolidated financial statements along with management's discussion and analysis are available for viewing on the Dynacor Gold Mines website at www.dynacorgold.com, and the documents have been filed with SEDAR at www.sedar.com. SUMMARY OF FINANCIAL RESULTS FOR THE FOURTH QUARTER AND FISCAL YEAR 2007 - Revenue generated from the sale of gold is $6,501,288 for the three-month period ended December 31, 2007. Revenue generated from the sale of gold for the eight-month period ended December 31, 2007 is $14,264,805 (eight months of activities are included since the acquisition of Minera Dynacor del Peru S.A.C). - Net earnings of $243,000 for the three-month period ended December 31, 2007. For the eight-month period ended December 31, 2007, Dynacor reports gross earnings of $1,155,946, and net earnings of $386,358. - Gold production at the Acari plant, acquired on May 1st, 2007, reached a record level of 25,789 ounces for the twelve-month period ended December 31, 2007 (the plant produced 14,312 ounces for the same period in 2006). - Gold sales deriving from custom milling, at the Acari plant, reached a record level of 19,322 ounces for the twelve-month period (eight months of activities are included since the acquisition of Minera Dynacor del Peru S.A.C). - The average sale price was US$694 per ounce for the twelve-month period. Cost of sales per ounce of gold was US$642. The gross margin deriving from gold production for Q4 2007 was $541,000 for the three-month period, and $1,155,946 for the eight-month period. - Working capital at December 31, 2007 was $4,325,391.
2008 OUTLOOK
Acari
The Company expects to process over 30,000 ounces of gold, through its custom milling operation, in 2008. The installation of new equipment, in order to facilitate this increase, has already begun. The Company expects to generate enough cash flow from operations at Acari, to fund all of its current exploration program, eliminating the need to finance such activities.
Tumipampa
In November of 2007, Phase I of a two part diamond drilling campaign began. This first phase totals 3,000 meters of drilling, to be completed within a targeted seven months time frame. Thus far, three holes have been drilled. The results obtained were very encouraging as they demonstrated the continuity of, and moreover the importance of two identified structures, namely the Vein 1 and Manto Dorado.
The next several drill holes are to target the Manto Dorado in order to verify the continuity of the mineralization within this very significant structure. Based on the results obtained from these holes, further drilling will test the Manto Dorado's extension at depth. The entire drilling program, totaling 11,000 meters is planned to take course over a period of 24 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.
Casaden
This third property hosts a disseminated type, epithermal gold deposit. Results taken from past surface grab samples, and from outcrops returned grades between 0.5 to 1.5 g/t Au. In 2008, the Company intends to complete surface exploration on Casaden. Once having identified promising targets, the Company plans to begin a drilling program.
ABOUT DYNACOR GOLD MINES INC.
Dynacor is a gold exploration and mining company, that has been active in Peru through its subsidiaries since 1996. The Company's assets include the Acari, Casaden and Tumipampa exploration properties. The Acari 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.