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PRESIDENT'S UPDATE
Vancouver, BC, January 29, 2008 - Dynasty Metals & Mining Inc. (TSX:
DMM, "Dynasty") provides the following update to shareholders
from its President, Robert Washer:
"Dear Shareholder,
We made significant progress in 2007 towards achieving our two primary
objectives, which are: to materially increase our resources estimates
through continued exploration, and to become the largest gold producer in
Ecuador, initially by bringing our Zaruma Gold and Jerusalem Projects into
production.
Production Update - Zaruma Gold Project
In April 2007, we received the last of the necessary permits from the
Ecuador Ministry of the Environment to construct and operate a mill capable
of processing 500,000 tonnes of ore per annum at our Zaruma Gold Project.
We are rapidly progressing the development of our project, with production
now expected to commence towards the end of the second quarter of this
year. The
project is on budget. Presently we:
- employ
approximately 350 local residents, approximately 150 of which are working
on underground exploration and the construction of the main decline;
- have
completed approximately 50% of the pre-fabrication work on major plant
components;
- have
completed the footings and cement work for the ball mills, ore bins,
crushers, conveyors, mixers and tanks;
- expect
the ball mills to be delivered from Guayaquil and installed within six
weeks;
- have
stockpiled approximately 17,000 tonnes of high grade ore for the start
up of the plant; and
- have
completed one kilometre of underground exploration tunnels, from which
we have defined the ore blocks from which we are going to mine
initially from our main decline, which is only 120 metres from
the first priority ore stopes.
In addition, a small pilot plant is processing
bulk samples of up to 20 tonnes of ore a day, using ore that is being
stockpiled from mine development activity. To date, we have produced
approximately six kilograms of gold and have confirmed the results of our
previous metallurgical testing.
Starting next month, we will regularly update our website at www.dynastymining.com with pictures as construction progresses.
Initially, we will process 300,000 tonnes of ore from our measured and
indicated resources to produce approximately 100,000 ounces
of gold annually at a total cash cost, inclusive of mining, of about US$200
per ounce. The installed capacity of the plant, except for the wet section,
will be approximately 800,000 tonnes, allowing for significant expansion
after we reach steady state production.*
Exploration Update - Dynasty Copper-Gold Belt
In November 2007, we announced a significant increase to our resources
estimate at our Dynasty Goldfield Project. (See our press release dated
November 19, 2007).
We continue to drill the Dynasty Goldfield. To date, we have only drilled
within an area of approximately five square kilometres (km2) out of a total
area of 30 km2 with high grade gold at surface, which was discovered
through extensive trenching and assaying. At present, we are operating two
diamond drill rigs and are expecting two more rigs to be delivered shortly
to increase exploration at the Company's projects.
Production Update - Jerusalem Project
We have received approval from the Ministry of Mines & Petroleum of the
Terms of Reference to be included in the Environmental Impact Study
("EIS") for Jerusalem. Prior to this approval, the Terms of
Reference were presented to, and accepted by, the local community. The
Company intends to comply with all of the requirements and technical
procedures for the approval of the EIS from the Ministry of Mines &
Petroleum, which, when fulfilled, will give us final approval to construct
and operate the plant and mine.
The proposed plant for Jerusalem will initially be designed to produce
approximately 100,000
ounces of gold annually and will be similar in size
and include the same processing methodologies that will be employed at
Zaruma. We have already purchased the ball mills, crushers, conveyor
systems and the land on which the plant will be constructed.
Other Significant Events
In the past twelve months we achieved, among other results, the following:
- In
January 2007, we hired Carlos Muirragui as our Business Development
Manager in Ecuador. Mr. Muirragui is a former senior member of the
Ecuadorian government, where he held a number of positions, including
Vice Minister of Mines, Under Secretary of Hydrocarbons, and Under
Secretary of Environmental Protection. On various occasions he was the
acting Minister of Energy and Mines. He has extensive knowledge of
operations within these ministries. Mr. Muirragui is a geologist and a
civil engineer.
- In
June 2007, we completed a $6 million non-brokered private placement at
$6.00 per share.
- In
August 2007, our shares were listed and called to trade on the Toronto
Stock Exchange.
- In
October 2007, we completed a $9.9 million brokered private placement
at $8.25 per share.
- In
December 2007, we exercised a previously negotiated option to buy back
one-half of a 3% royalty payable on our Zaruma Gold Project for US$1
million. The Company has a further option to purchase the balance of
the royalty for US$5 million at anytime before December 2008.
Government Policies
The President of Ecuador has made it clear on several occasions that he
favours mining and expects it to be an engine for future economic growth. The
mining industry in Ecuador is in its infancy. We will be the first modern
mine to operate in Ecuador in approximately 50 years, and are constructing
the largest plant in Ecuador's history.
At present, mining in Ecuador is not subject to royalties or other forms of
direct government participation, which is common in many other
jurisdictions. It is generally understood that significant new taxes will
deter foreign investment and slow industry growth. For these reasons, we
believe that any future tax changes will be competitive with neighbouring
nations and will not significantly impact our investment decisions.
Market Capitalization
Our present market capitalization of approximately $220 million, at $7.50
per share and 29.3 million shares outstanding, includes $16 million in cash
and, as previously reported, significant estimated gold and silver
resources. Our in ground estimated gold resources are presently valued by
the market at approximately $35 per ounce at a time when we are in
construction to commence large scale production. This excludes any
value attributable to our many exploration prospects or the silver and
other constituent metals associated with our gold resources.
I wish to thank our shareholders for their continued support."
Rob Washer
President & Chief Executive Officer
About Dynasty Metals & Mining Inc.
Dynasty Metals & Mining Inc. is a Canadian based mining company
involved in the exploration and development of mineral properties in
Ecuador. The Company has two advanced-stage projects, Zaruma, which is near
production, and Jerusalem, and a highly prospective exploration project,
the Dynasty Copper-Gold Belt, which includes the Dynasty Goldfield, the
Copper Duke Project and the Marianna Joint Venture among other prospects.
Dynasty Metals & Mining Inc.
Robert Washer, President and CEO
For further information please visit the Company's website at www.dynastymining.com, or
*Based on an independent gold resources estimate of 1,568,000 tonnes in the
measured category, with 0.45 ounces per tonne ("oz/t"), 13.93
grams per tonne ("g/t"), and 702,100 ounces gold; 915,000 tonnes
in the indicated category, with 0.45 oz/t, 13.87 g/t and 408,100 ounces of
gold; and 3,382,000 tonnes in the inferred category, with 0.41 ounces per
tonne ("oz/t"), 12.72 grams per tonne ("g/t"), and
1,383,400 ounces gold. For further information, see the Company's news
release dated July 12, 2006 and An Independent Preliminary Assessment of
the Zaruma Gold Project, which is dated August 21, 2006, both of which are
available for viewing at www.sedar.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 - Standards of Disclosure for
Mineral Projects, is responsible for the technical information contained in
this news release.
This news release includes "forward-looking information", as
such term is defined in applicable securities laws. The forward-looking
information includes, without limitation, the estimation of mineral
resources, the realization of mineral resources estimates, the success of
exploration activities and other similar statements concerning anticipated
future events, conditions or results that are not historical facts. These
statements reflect management's current estimates, beliefs, intentions and
expectations; they are not guarantees of future performance. The Company
cautions that all forward-looking information is inherently uncertain and
that actual performance may be affected by a number of material factors, many
of which are beyond the Company's control. Such 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; 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 February 19, 2007 filed with the Canadian Securities
Administrators and available at www.sedar.com. Accordingly, actual future
events, conditions and results may differ materially from the estimates,
beliefs, intentions and expectations expressed or implied in the
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.
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