MONTREAL, QUEBEC--(Marketwired - Jan 22, 2015) - Dynacor Gold Mines Inc. (DNG.TO) (DNGDF) (Dynacor or the Corporation) is pleased to announce that during the fourth quarter of 2014, the Huanca ore processing plant produced 19,923 ounces of gold (as compared to 19,222 ounces in Q4-2013) including an all-time record monthly production of 7,179 ounces of gold in December (a 12.7% increase as compared to December 2013).
2014 Gold Production
The quarterly production data for 2014 and 2013 given in Table 1 clearly shows that the main issue in 2014 was in Q1 when a production deficit of 7,852 ounces of gold occurred. This was due to the Corporation temporally suspending ore purchases and slowing production due to the prevailing situation in Peru (see press release dated January 29, 2014). Table 1 also shows that gold production at the Corporation's Huanca facility has, for the last six months, stabilized and is close to its full capacity thanks to the hard work and dedication of our employees.
During the last few months Dynacor was able to purchase sufficient high grade ore from government registered ore suppliers to operate its plant at 250 tpd. However, the Company has been unable to ramp up its ore inventory before the rainy season that runs from January to April and therefore intermittent ore supply disruptions and lost production days are possible.
In 2014, gold grades of the ore purchased by Dynacor remained high and were comparable to the grades processed in 2013.
In 2014, total gold production reached 68,923 ounces slightly below (1.54%) the 2014 gold production guidance of 70,000 ounces. Production in 2014 was significantly below 2013 production (76,883 ounces) due to the loss of production days (see Table 1).
Table 1. The Huanca Ore Processing Plant production in 2014 and 2013
| |
Gold Production |
|
| |
(ounces) |
|
| |
2014 |
2013 |
Variance |
Comments |
| Q1 |
12,175 |
20,027 |
-7,852 |
DNG voluntarily suspends ore purchases & slows production due to the situation in Peru |
| |
|
|
|
|
| Q2 |
17,608 |
17,893 |
-285 |
Formalization process is clarified and market slowly returns to normal |
| |
|
|
|
|
| Q3 |
19,217 |
19,741 |
-524 |
Plant operates at close to its maximum capacity of 250 tpd |
| |
|
|
|
|
| Q4 |
19,923 |
19,222 |
701 |
All time record monthly production of 7,179 ounces of gold in December 2014 |
| |
|
|
|
|
| Total |
68,923 |
76,883 |
-7,960 |
2014 Production of 68,923 oz. is close to 70,000 oz. guidance |
Outlook and Production Guidance for 2015
Dynacor plans to operate its Huanca plant at its full capacity during 2015 and management has issued a gold production guidance for 2015 between 75,000 and 80,000 ounces which represents a 7-14% increase above the production guidance for 2014. This guidance takes into account some lost production days during the rainy season.
Furthermore, the Company has hired a specialized consulting firm to undertake an external technical audit of the Huanca plant in order to identify how to optimize its processing efficiency, gold and silver recovery, decrease the use of chemicals and improve recycling. Once the audit has been completed its recommendations will be implemented gradually during 2015.
Notwithstanding variations in the price of gold, lower energy costs due to the drop in the price of oil on the world market as well as the above optimization process should lead to significant cost savings in 2015 and therefore a better operational gross margin per ounce.
There have been no new developments regards the Chala permit and the Company is still actively working with the authorities in order to have this construction permit issued.
ABOUT DYNACOR GOLD MINES INC.
Dynacor is an ore processing and 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 Huanca ore processing plant in Peru. The Company's assets include three exploration properties, including the Tumipampa property, as well as its 250 tpd gold and silver ore processing mill at Huanca. Dynacor's mill produces gold from the processing of ore purchased from ore producers from all over Peru. 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.
Website:http://www.dynacorgold.com
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