DYNASTY PROVIDES
SHAREHOLDER UPDATE
Vancouver, BC, June 8, 2009 - Dynasty Metals & Mining Inc. (TSX:
DMM, "Dynasty" or the "Company") is pleased to announce
that it has successfully commissioned the crushing and milling sections of
the gold processing plant at its Zaruma Gold Project, in the El Oro
Province of south-western Ecuador. Dynasty expects to commence production
in the next few weeks.
The Company continues the construction of three declines and exploration
work to identify sites for new declines to allow for future expansion of
mining activities. Dynasty expects to be able to process approximately 400
tonnes of ore per day by the end of June, increasing to the equivalent of
300,000 tonnes per annum during the third quarter of this year. Upon
reaching this steady state, the Company will work towards expanding ore
extraction to optimize plant capacity. The material mined during the
construction phase of construction of the declines is expected to be of
lower average grade. The average grade will increase as we move nearer to
our primary targeted resources which reside at slightly deeper levels.
All mine development activities are now fully underway and the Company has
purchased the substantial majority of required equipment which is either at
the mine site or in-transit to Ecuador, including eight Jumbo's, six 5 and
6 yard underground loaders, eight 2.5 and 1 yard underground loaders, two
725Cat Haul Trucks, two 950Cat Loaders, one 966Cat Loader, three 953Cat
Track Loaders, two 420Cat Backhoes, one 20 tonne excavator, two electric
drills, five telehandlers and one shotcrete machine. In addition the
Company has contracted out other necessary services such as transportation.
The slight delay from Dynasty's previously estimated development schedule
is primarily due to the Ecuador government mandated suspension of mining
activities. The suspension, which was recently lifted, created unforeseen
restart challenges and caused delays in sourcing and importing certain
mining equipment.
The Company currently has net working capital of approximately $16 million.
The Ecuador government has indicated to the Company that the regulations
under which the Mining Law will be governed are due to be released in the
near future. Dynasty has been advised that the regulations will assist in
setting out the framework of exploitation contracts. Dynasty continues to
work closely with government officials and regularly apprise them of its
progress and plans with respect to the Zaruma Gold Project. The Company has
not received any indication that such plans are at risk as a result of
probable government intervention or policy.
Last week it was reported that the Ecuadorian government signed a
cooperation agreement on mining exploration and development with Codelco,
the copper mining company owned by the Chilean government. We view this as
a positive step toward developing the mining industry in Ecuador.
In other developments:
- the
Company has registered its projects with the new National Water
Authority and submitted updated Environmental Impact Studies to the
Ministry of Mines and Petroleum as required under the new Mining Law;
- we
have been advised by the Ministry of Mines & Petroleum that once
the regulations to the Mining Law have been released they will resume
processing permit applications, including the mine and plant operation
permits the Company has submitted for the Jerusalem Project; and
- the
Company has now made the decision to ship two previously purchased
diamond drills, which were being stored in Canada, down to Ecuador.
This will bring the total number of drills the Company owns in Ecuador
to four. The drills will be used at Zaruma to assist in identifying
locations to develop future declines and to recommence exploration
activities at other projects in the future.
Photographs of the
Zaruma Gold Project will continue to be updated and are available on the
Company's website at www.dynastymining.com.
Julian McDermott, a member of AUSIMM (Australian Institute of Mining and
Metallurgy) and a "qualified person" within the definition of
that term in National Instrument 43-101, has supervised the preparation of
the technical information contained in this news release.
About Dynasty Metals & Mining
Dynasty Metals & Mining Inc. is a Canadian based mining company
involved in the exploration and development of mineral properties in
Ecuador.
The Company has the near production Zaruma Gold Project, the advanced-stage
Jerusalem Project, and a highly prospective exploration project, the
Dynasty Copper-Gold Belt, which includes the Dynasty Goldfield.
Dynasty Metals & Mining Inc.
Robert Washer, President and CEO
For further information please visit the Company's website at www.dynastymining.com, or please contact:
This news release includes "forward-looking information", as
such term is defined in applicable securities laws. Users of
forward-looking information are cautioned that actual results may vary from
forward-looking information contained herein. The forward-looking
information includes, without limitation, the anticipated dates that the
different phases of commissioning will be completed, the amount and grade
of material that the Company plans to process, the timing and ability of
the Company to mine and deliver material to the processing plant, the
anticipated date of commencement of production, statements regarding the
new regulations to the Mining Law and other similar statements concerning
anticipated future events, conditions or results that are not historical
facts. In certain cases, forward-looking information was developed using
the material factors or assumptions stated herein. Such factors and
assumptions include, amongst others, the effects of general economic
conditions, the price of gold, changing foreign exchange rates and actions
by government authorities, uncertainties associated with legal proceedings
and negotiations and misjudgements in the course of preparing
forward-looking information. In addition, there are also known and unknown
risk factors which could cause the Company's actual results, performance or
achievements to differ materially from any future results, performance or
achievements expressed or implied by the forward-looking information. Known
risk factors include, among others, risks and uncertainties relating to
exploration and development; the ability of the Company to obtain
additional financing; the Company's limited operating history; uncertain
mining legislation; the need to comply with environmental and governmental
regulations; political and economic instability and general civil unrest in
Ecuador; potential defects in title to the Company's properties; fluctuations
in currency exchange rates; fluctuating prices of commodities; operating
hazards and risks; competition; and other risks and uncertainties,
including those described in the Company's Annual Information Form dated
March 25, 2009 filed with the Canadian Securities Administrators and
available at www.sedar.com. Although the Company has attempted to identify
important factors that could cause actual actions, events or results to
differ materially from those described in forward-looking information, there
may be other factors that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that forward-looking information,
or the material factors or assumptions used to develop such forward looking
information, will prove to be accurate. Accordingly, readers should not
place undue reliance on forward-looking information. All statements are
made as of the date of this news release and the Company is under no
obligation to update or alter any forward-looking information except as
required by law.
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