Dynacor Gold Mines Inc. (dynacor gold)
Symbol: DNG
Toronto Stock Exchange (TSX)
MONTREAL, Jan. 16 /CNW Telbec/ - Dynacor Gold Mines Inc. (TSX: DNG) ("Dynacor") is very pleased to announce that in 2007 the Acari mill produced a record 25,789 ounces of gold. Gold production increased by 11,411 ounces representing an increase of 79%, as compared to the 14,378 ounces the mill produced in 2006. Jean Martineau, the Company's CEO and President commented recently: "For the first time in the Company's history, gold production exceeded the targeted production as mentioned in the Company's 2006 annual report: Dynacor plans to continue increasing the production capacity of the Acari mill, to reach a gold production of 20,000 ounces in 2007 and 25,000 ounces in 2008. The Company has in fact reached its 2008 target of 25,000 ounces one year in advance." This extraordinary result is due to an increase in the plant's milling capacity, improved technology as well as new administrative and cost control procedures that were implemented by the Company's management both in Canada and in Peru.
Acari Plant
In the last quarter of 2006 and during 2007, a series of major changes were gradually implemented at the Acari plant and this process is ongoing as we will see below. First and foremost starting in the 3rd quarter of 2006 the milling rate was increased to 100 tons/day by purchasing new equipment and upgrading some of the existing equipment. Two new cyanidation tanks were built and a third one is being completed. Ore purchases were optimized and the average year-round gold grade of the custom milled ores increased by 29% (equivalent to an increase of 6.14 g/t). Furthermore, during 2007 gold recovery rates were also optimized and increased by more than 2%.
New monitoring and cost control procedures were introduced and recycling of certain chemicals and process solutions was enhanced, in particular with respect to cyanide. New processes were implemented in order to increase the recovery of metallic silver and mercury. Finally, new environmental safety procedures were implemented and worker safety was also enhanced.
Outlook for 2008-2009
In 2008-2009, the Company plans to gradually increase its milling capacity to 150 tons/day and finish building a Merrill Crowe cyanidation unit. Installation of the Merrill Crowe tank is now 80% completed and this equipment should be online in Q1 2008, after it has been fully tested. Once this tank is operational the milling capacity at Acari can be increased step by step.
Installation of the new Cu/Au/Ag custom mill has now been completed and the unit is being tested using various types of ores to assess its operability. This new unit consists of a cyanide-free process that is based on crushing & sizing the ores and chemical flotation. Initially, its capacity will be 20-40 tons per day but this can be increased at a later date depending on the demand for custom copper ore milling and its profitability.
Overall, the Company's management is very optimistic in regards to the future development of the Acari mill for 2008-2009. Dynacor Gold has the financial resources necessary to continue increasing its activities at Acari, thus the generation of free cash flow that can be used for exploration of the Company's mining properties and/or the acquisition of new ones.
Drilling underway at Tumipampa
Drilling began in November/December 2007 and is currently actively underway. The Company has already completed drilling of two holes and has begun work on the Manto Dorado. Dynacor will report the first results as soon as they are available.
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 Acari plant, and the Tumipampa property, as required by National Instrument 43-101 and its annexes with respect to the reporting and content of this press release.
ABOUT DYNACOR GOLD MINES INC.
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. Dynacor Gold Inc. owns 100% of the Acari mill which was acquired from Malaga inc. (TSX: MLG) on the 1st of May 2007 and from which it 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 for over 11 years. 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 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.