MONTREAL, QUEBEC--(Marketwire - Nov. 29, 2012) - Dynacor Gold Mines Inc. (News - Market indicators) (Dynacor or the Company) is pleased to announce an operations update from its ore-processing division in Peru. During the month of October, the Company recorded its best month ever, producing 6,169 ounces of gold from purchased ore with an average gold grade of 1.004 oz/tonne. In addition, 14,775 ounces of silver were produced generating total sales of USD $10.6 million for the month.
In the first ten months of 2012, Dynacor has generated gold and silver production of 48,839 and 129,606 ounces, respectively. This result is due in large part to the increase in gold grades available from the influx of small scale miners and the ore-processing plant operating at its maximum capacity. The Company now expects to produce more than 58,000 ounces of gold which is 18% above its published 2012 guidance.
Mr. Jean Martineau, President and CEO of Dynacor Gold Mines, stated: "Dynacor offers junior resource sector investors two strategic advantages:
- The Company is auto-financed since it generates from its gold ore-processing business, the cash flow it needs to expand, to explore its properties and to pay all of its administrative expenses.
- Dynacor's business model protects its shareholders from dilution due to external share-based financings that characterize most junior resource exploration companies.
We have been operating our ore-processing business since the late 1990s and are organically growing into one of the foremost and trusted ore-processing operations in Peru. Cash flow and liquidity levels are as robust as the company has seen throughout its history.
The company is planning to build a new 300 tpd ore-processing facility in 2013.We expect that our financial results will enable us to finance the construction of our new plant, our exploration campaign and continue to provide strong shareholder value in the coming quarters."
Gold produced from ore-processing from January to October 2012 is shown in the Table, below.
Monthly Production (oz Au) to date
||Total 10 months 2012
||Total 10 months 2011|
ABOUT DYNACOR GOLD MINES INC.
Dynacor is a 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 ore processing plant in Peru. The Company's assets include six exploration properties, including the Tumipampa property, along with its recently upgraded 220 tpd ore processing mill at Acari. Dynacor's mill produces gold from the processing of ore purchased from local producers. 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.
Dynacor Gold Mines Inc. (News - Market indicators)
Shares outstanding: 35,890,167