Dynacor Gold Mines: Gold and Silver Production Continues to Soar in Q1-2012
MONTREAL, QUEBEC–(Marketwire – April 19, 2012) – Dynacor Gold Mines Inc. (TSX:DNG) (Dynacor or the Company) is pleased to announce the first quarter 2012 production update. Gold production via its ore-purchasing division in Peru was 13,101 ounces (9,925 ounces in Q1-2011), a 32% increase from the same period last year.
In conjunction with the higher metal production, the Company estimates a quarterly gold and silver sales record of US $23.5 million (US $14.7 million in Q1-2011) which is a period over period increase of 60%.
During the first quarter of 2012, Dynacor continued operating at optimum recovery rates of 94%, processing 17,558 DMT (dry metric tonnes) of ore at an average grade of 22.39 g/t Au (0.78 oz. /DMT) (13 520 DMT at 22.11 g/t Au (0.78 oz /DMT in 2011). This increase in production is attributable to the Company’s plant capacity expansion completed in the fourth quarter 2011.
RECORD SILVER PRODUCTION
Dynacor produced 41,112 ounces of by product silver during the first quarter of 2012. This is the highest amount generated by the Company in a quarterly period and a 94% increase from the same period last year (21,145 ounces in Q1-2011).
Jean Martineau, President and Chief Executive Officer of Dynacor, stated: “Dynacor’s ore-processing division has started strong for the 2012 season. Annualizing at over 52,000 ounces in the first quarter of 2012, we are confident the Company is well on target to achieving its 2012 gold production guidance of 50,000 ounces. The expected increase in cash flow during the quarter bolsters Dynacor’s strategy of self-funding the Company’s 2012 drilling and cross-cutting campaign at Tumipampa while eliminating the need for shareholder dilution”.
2012 EXPLORATION CAMPAIGN
The Company is currently working on the final touches of its upcoming 2012 exploration campaign. As soon as the rainy season ends, Dynacor will begin ground preparation work, the set-up of the drilling platforms, begin excavation of the cross-cut program, expansion of the camp and conduct additional surface sampling. Drilling of the skarn zone #4 will commence upon completion of the drilling platform. Due to unforeseen heavy rains in the region, preparation work has been delayed. Several regions throughout Peru have flooded causing destruction of bridges and major landslides. Typically the rainy season ends in the first half of April; however, this year various regions throughout the country are still reporting heavy rainfall.
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