Dynacor Obtains Final Construction Permit for Its New Gold Ore-Processing Plant in Chala
MONTREAL, QUEBEC–(Marketwired – March 18, 2015) – Dynacor Gold Mines Inc. (TSX:DNG)(OTC:DNGDF) (Dynacor or the Company) a Company with gold ore-processing operations and exploration projects in Peru, is pleased to announce it has just obtained the construction permit for its new gold ore processing plant in Chala (Southern Peru). The construction permit has been issued by the Ministry of Energy and Mines (MEM) in Lima which regulates medium and large scale (capacity >350 tpd) mining operations throughout Peru. The Company is currently commissioning the best construction companies with the required experience and track record.
The new plant will have an initial ore processing capacity of 300-tpd (102,000 t/y). The Chala plant has been designed to be readily expanded to 450-tpd (153,000 t/y) and then to 600-tpd (204,000 t/y) by adding additional processing lines and ball mills.
The Chala facility will be built on a 135-hectare site that is part of a 200-hectare mining concession which was purchased by Dynacor in March 2011. This concession is located in the Department of Arequipa, District of Chala, in the heart of one of the most productive gold mining regions of Peru. The total construction cost has been estimated at10-million USD and will be entirely financed internally.
The above mentioned total cost includes USD 2.3 million that has already been spent on general infrastructure and equipment, including:
- A 5 km hardened road connecting the site to the Pan-American South highway;
- A power line connected to the National Power grid;
- Water wells and water storage tanks as well as a pumping station;
- A perimeter security fence and gate;
- Housing facilities for the company’s employees and construction crews; and
- Milling heavy equipment including two 7’x8′ ball mills that have already been tested at the Huanca mill.
Dynacor expects to process in excess of 102,000 tonnes of purchase ore per year at its new facility in Chala, compared to a processing capacity of 85,000 t/y in Huanca.
The Company is very pleased that despite the difficult operational climate for most junior mining companies, its auto-financing business model has allowed the Company to finance the expansion of its gold processing operations and the ongoing exploration of its mining properties. Finally, Dynacor’s management wishes to underline that it carefully selected the Chala site and that it is an ideal location for Dynacor’s new gold ore processing plant since it:
- offers easy highway access for ore producers from all over Peru;
- has ample space for tailing ponds for many years and a favorable climate;
- offers access to the Peruvian national grid; and
- is located in a mining friendly region.
We expect that The Company’s new gold processing plant at Chala will create value for our shareholders for many years since it will benefit from increased production volume and reduced operating costs.
ABOUT DYNACOR GOLD MINES INC.
Dynacor is a gold ore-processing and exploration company active in Peru since 1996. The Company differentiates itself from pure exploration companies as it generates income from its wholly owned ore-processing plant. Dynacor’s basic share count at 36.2 million outstanding is in the lowest quartile of the resource sector. The Company’s assets include three exploration properties, including the advanced high-grade gold Tumipampa property and an operating 85,000 TPA gold and silver ore processing mill at Huanca. The Company’s strength and competitive advantage comes with the experience and knowledge it has developed while working in Peru. Its pride remains in maintaining respect and positive work ethics toward its employees, partners and local communities.
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)
Shares outstanding: 36 245 111
President and CEO
Dynacor Gold Mines Inc.
514-393-9000 Ext. 228
Dynacor Gold Mines Inc.
604.492.0099 or M: 604.562.1348