Dynacor Gold Mines Inc. reports record gold sales of 8.27 million dollars in Q2 2008
Montr�al, Qu�bec, August 25, 2008 � Dynacor Gold Mines Inc. (Dynacor TSX:DNG) is pleased to announce record gold sales of 8.27 million dollars as well as its financial results for the 2nd 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.
Highlights for the three-month and the six-month periods ended June 30, 2008
� Gold sales of 8,710 ounces at an average price of US$894 per ounce and total gold sales of 15,976 ounces for the first six months of 2008.
� Gross earnings of $1,109,342 for the three-month period ($1,834,939 for the six-month period ending June 30, 2008).
� Net earnings of $33,301 for the three-month period and net earnings of $261,901 for the six-month period.
� Working capital of $4,245,367 (June 30, 2008).
� Cash and cash equivalents of $1.4M (June 30, 2008).
� For the three-month period ended June 30, 2008, investments amounted to $416,458 ($227,678 in exploration (Tumipampa) and $188,780 in capital assets for Acari) and $703,392 for the six-month period.
THIS PRESS RELEASE CONTAINS FINANCIAL STATEMENTS. TO VIEW, PLEASE CLICK HERE.
The Company shares the same senior management with Malaga Inc. Common expenses are billed to the Company according to their use without surcharge. The increase in the cost of Peru is mainly due to the increase in the salaries, as the number of employees increased comparatively to 2007. The professional fees consist of mainly additional charges relative to the 2007 year end audit. In 2007, there were no investor relations as the Company wasn�t public. Travel expenses are comprised of different trips to Peru by management as well as meetings with investors.
The income tax burden is composed of the taxes of the Peruvian subsidiary, at a rate of 30%. The effective tax rate is different than the statutory rate because the Canadian parent company recorded a loss and cannot record this tax benefit.
Outlook for Gold Production
In 2007, the Company had established a production goal of 25,000 ounces for 2008 with a production capacity of 90 tons per day. This production goal was updated in the first quarter of 2008 to 30,000 ounces. During the second quarter, the production capacity increased to 120 tons per day and gold sales reached 8,710 ounces (7,266 ounces in the first quarter) for a total of 15,976 ounces for the first 6 months of the year.
In early July, production reached 130 tons per day and Dynacor has started installing new equipment that will allow it to further increase its daily milling capacity. The Company�s goal is to gradually increase production to 180t/day by the end of 2008.
Exploration Outlook
Tumipampa
The Tumipampa project is located 500 km from the city of Lima, in the Chapimarca district, Province of Aymaraes, Department of Ap�r�mac. Dynacor Gold owns a total of 2,650 hectares which are adjacent to concessions being explored by the following companies: Yamana Gold, Bear Creek and Southern Peru.
In late 2007, the Company began a 4,000 meter drilling campaign and a surface exploration program. Initial results were reported in February 2008 (see Press Release dated February 12, 2008) and further results reported in July 2008 (see Press Release dated July 14, 2008).
The Company is very pleased with the results obtained so far that have led to discovery of several new high grade veins and a mineralized Skarn structure of unknown dimensions.
Overall, the results obtained suggest that three different types of mineralization can be encountered on the Tumipampa property, namely:
1. Gold bearing vein structures with variable widths ranging from 0.1 to 7 meters and gold grades of up 20.2 g/t.
2. Disseminated gold mineralization associated with breccias in the quartzite rock with gold grades up to 1 g/t, revealed by surface samples.
3. Gold, copper and iron mineralization associated with Skarn-type deposit at the interface between limestones (Ferrobamba formation) and marbles and the intrusive body. Twenty-five surface channel and grab samples showed gold, silver and copper mineralisation. Three samples had approximately 1% copper and gold minerazation ranging from 2.67 g/t to 9.88 g/t. Twelve samples returned gold grades of over 1 g/t and up to 15.65 g/t.
Casaden Property
The Casaden property is located in the district of Magdalena, 890 km northeast of Lima, in the Chicama-Yanacocha (Newmont) corridor. In this region, large mining companies such as Newmont, Barrick, Gold Fields and Buenaventura have profitable mines. Casaden includes three mining concessions and covers an area of 1,600 hectares. Like its neighbors, the Casaden property contains disseminated epithermal gold deposits. Surface exploration work has been done on the property. The Company is currently studying several options in order to continue the exploration of Casaden.
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.
Julien Ouimet: jouimet@renmarkfinancial.com
John Boidman: jboidman@renmarkfinancial.com
Tel. : 514 939-3989
Fax : 514 939-3717
www.renmarkfinancial.com
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