Dynacor
Gold Mines Inc. ( dynacor )
Symbol : DNG
Toronto Stock Exchange (TSX)
Dynacor Gold Mines reports record
gold sales of 6.71 million dollars in Q1 2008
Montréal, Québec, May 22, 2008 –
Dynacor Gold Mines Inc. (Dynacor TSX:DNG) is pleased to announce record
gold sales of 6.71 million dollars as well as its financial results for the
first quarter of 2008. The consolidated financial statements (all currency
figures appear in Canadian dollars unless otherwise specified) along with
the management's discussion and analysis are available for the viewing on
the Dynacor's website at www.dynacorgold.com and the documents have been
filed with SEDAR at www.sedar.com.
Q1 2008 Highlights
• Record gold
sales of 6.71 million dollars at an average sale price of US$931 an ounce
produced at an average custom milling cost of US$818 ;
• Gross earnings of $799,257 (before amortization) and $725,597
(after amortization) and net earnings of $228,600 ($0.01 per share) ;
• Cash and cash equivalents of $1,488,297 and a working capital of
$4,490,273 ;
• For the first time in its history the Acari plant attained a daily
production capacity of 120t/day (a 100% increase since Q1 2006) ;
• Drilling of the Tumipampa property continued at a fast pace and
the Company expects to release these results during Q2.
Overall, during Q1 2008 Dynacor operated in a favourable environment
that was characterized by a buoyant gold market. Record gold sales were
attained and the capacity of the Acari Plant was increased by 20% relative
to Q4 2007. Management is determined to pursue this expansion in the plant's
capacity during 2008. The Company also opened a new gold ore purchasing
office in Espinar/Cusco some 770 km south of the Acari where many new gold
mining operations have emerged in the last two years.
Operating
Activities
The Company recorded net earnings of $228,600, or earnings per share of
$0.01. Gross earnings reached $725,597. Gross earnings were reduced,
mainly, by the general and administrative expenses of $416,792 and the
stock-based compensation of $174,004 in regards with the issuance of stock
options during the period.
Principal
Financial Data (in $000)
|
|
Three-month
period ended
March 31, 2008
|
|
Sales
|
6,710
|
|
Net
earnings
|
229
|
|
Cash
flow increase from operating activities before
non-cash working capital items
|
481
|
|
Cash
flow from operating activities
|
180
|
|
Cash
and cash equivalents
|
1,488
|
|
Total
assets
|
20,702
|
|
Shareholders'
equity
|
17,812
|
|
Outstanding
shares as at Marc 31
|
30,000,100
|
Gold Sales
Gold sales can be summarized as follows :
|
|
2008
|
|
Sales
of gold (ounces)
|
7,266
|
|
|
$
|
|
Sales
|
6,710,432
|
|
Cost
of sales
|
5,911,175
|
|
|
|
|
Gross
earnings before amortization
|
799,257
|
|
Amortization
|
73,660
|
|
Gross
earnings
|
725,597
|
In Q1 2008, total gold production came from the purchase of ore from local
producers and was sold in the open market and the Company did not have any
hedging activities.
OUTLOOK
FOR 2008
Custom
Gold Milling
Phase 1 of the increase in milling capacity has now been completed and
the Acari mill now has a daily capacity of 120 tons/day. During Q1 2008,
the Company installed a new additional ball mill (5.5 x 6 ft) and a new 16
x 16 ft cyanidation tank. Both of these new pieces of equipment have been
tested and are now fully operational. Installation of the Merrill Crowe
unit is now completed and this equipment is undergoing extensive testing
before being commissioned. Once it is operational it will enable the Company
to further increase its production capacity during Q2/Q3 2008.
The Company expects to process over 30,000 ounces of gold in 2008 and
will gradually increase its capacity up to 150t/day by the end of
2008.
Exploration
Activities
Phase 1 of the previously announced 11,000 meter drilling campaign of
the Tumipampa property (see Press Release dated November 22, 2007) has been
completed on schedule. In all 15 holes have been drilled adding up to a
total of approximately 3,000 meters. Initial results on three drill holes
were reported in a press release on the 12th of February 2008 and the
Company is eagerly awaiting further results which will be reported as soon
as possible.
Dynacor Gold plans to continue to explore actively its 100% owned
Tumipampa property during Q3 and Q4 of 2008 and this will include drilling
as well geophysical surveys and surface sampling.
Iván Quiroz, Vice President Operations and Director, is a mining
engineer and metallurgist, and a member of the Collegio de Ingenieros del
Perú. 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 is a gold exploration and mining company, that has been active
in Peru through its subsidiaries since 1996. The Company's assets include
the Acari, Casaden and Tumipampa exploration properties. The Acari mill
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. Its pride remains in maintaining respect and
positive work ethics toward its employees, partners and local communities.
For more information, please contact :
|
Jean
Martineau
President
& CEO
Dynacor Gold Mines Inc.
514 288-3224
|
|
Renmark Financial Communications Inc.
James Buchanan : jbuchanan@renmarkfinancial.com
Éric Saint-Pierre : estpierre@renmarkfinancial.com
Tel. : (514) 939-3989
Fax : (514) 939-3717
www.renmarkfinancial.com