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Dynacor: Huanca Gold Ore Processing Plant Produced 6,810 Ounces of Gold in May

13.06.2014  |  Marketwired

MONTREAL, QUEBEC--(Marketwired - Jun 13, 2014) - Dynacor Gold Mines Inc. (TSX:DNG)(OTC:DNGDF) (Dynacor or the Corporation) is pleased to announce that in May 2014 its Huanca gold ore processing plant operated at its maximum capacity of 250 tpd and produced 6,810 ounces of gold. Furthermore, Dynacor has been able to resume working with all of its ore suppliers.

Ore processing update

During the first week of March, the Corporation resumed its gold exports and ore purchases after the slowdown during the first two months of Q1-2014 due to the governmental crack down on illegal mining and illegal gold exports from Peru.

Huanca 250 tpd Plant: In April 2014, the plant operated at 150 tpd and produced 5,273 ounces of gold. In the month of May, the Huanca ore processing facility operated at 250 tpd and produced 6,810 ounces of gold. Finally, the Company is working actively to rebuild its operating ore inventory levels.

Officials from the Peruvian ministry of Mines recently visited Dynacor's Huanca mill located near Nazca and concluded that our ore processing facility operation was fully compliant with all Peruvian mining regulations.

Over the past few months, Peruvian authorities in Southern Peru, in their fight against illegal gold mining have permanently closed thirteen ore processing plants - six (6) in the Nazca area and seven (7) in the Chala area.

Chala 300 tpd Plant: Now that the legal framework for the small mining sector in Peru has been established, Dynacor is confident that the permitting process for its Chala Plant will move forward and that the final permit will be issued in due course.

Dynacor's investment in its new Plant to date amounts to $2.3M towards the $10M construction budget and includes the following:

  • environmental impact assessment;
  • hydrogeological water and tailings studies;
  • permitting expenses;
  • consultant fees;
  • equipment purchases;
  • construction of five buildings to house the workers and miners;
  • water well and storage tanks;
  • communication tower;
  • power line connecting the site to the national grid.

About Dynacor Gold Mines Inc.

Dynacor is a gold and silver ore processing and a gold exploration and mining Corporation active in Peru through its subsidiaries since 1996. The Corporation differentiates itself from pure exploration companies as it also generates income and cash flow from its wholly owned gold ore processing plant in Peru. The Corporation's assets include three exploration properties, including the Tumipampa property, as well as its now 250 tpd gold and silver ore processing mill at Huanca. Dynacor's mill produces gold from the processing of ore purchased from many registered miners. Dynacor's strength and competitive advantage comes with the experience and knowledge the Corporation 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.

Dynacor Gold Mines Inc. (TSX:DNG)

Website: http://www.dynacorgold.com

Twitter: http://twitter.com/DynacorGold

Facebook: facebook.com/DynacorGoldMines

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Contact

Dynacor Gold Mines Inc.
Jean Martineau
President and CEO
514-393-9000 ext. 228 - 224
Dynacor Gold Mines Inc.
Dale Nejmeldeen
Investor Relations
604.492.0099
M: 604.562.1348
nejmeldeen@dynacor.com


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