|
Dynacor Gold Mines Inc. ( dynacor )
Symbol : DNG
Toronto Stock Exchange (TSX)
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.
Sales
Gold sales are
summarized as follows:
|
|
Three-month
period ended
June 30, 2008
|
|
Six-month
period ended
June 30, 2008
|
|
Sales of gold (ounces)
|
8,710
|
|
15,976
|
|
|
$
|
|
$
|
|
Sales
|
8,269,690
|
|
14,980,122
|
|
Cost of sales
|
7,054,413
|
|
12,965,588
|
|
|
|
|
|
|
Gross earnings before amortization
|
1,215,277
|
|
2,014,534
|
|
Amortization
|
105,935
|
|
179,595
|
|
Gross earnings
|
1,109,342
|
|
1,834,939
|
Total gold production came from the purchase of ore from local
producers.
|
|
Three-month
period ended on
June 30, 2008
|
|
$US / ounce
|
|
|
Average selling price
|
894
|
|
Average cash cost
|
765
|
|
Margin before amortization
|
129
|
Operating Activities for the three-month
period ended June 30, 2008
The Company recorded net earnings of $33,301. The Company achieved
gross earnings of $1,109,342, which is an increase of US$16 per ounce in
comparison to the first quarter of 2008. Gross earnings were reduced,
mainly, by the selling expenses for Q1 and Q2 of $207,564 (commission of
1.9% of total sales), general and administrative expenses of $477,060 and
the stock based compensation of $62,260 in relation to the grant of stock
options during the period. The Company recorded a foreign exchange loss
of $147,621 resulting from the decrease in value of the Nuevo Sol
compared to the US dollar.
General and
administrative expense can be itemized as follows:
|
|
Three-month
period ended on
June 30, 2008
|
|
Six-month
period ended on
June 30, 2008
|
|
|
$
|
|
$
|
|
Peru
|
154,519
|
|
297,966
|
|
Salaries
|
104,687
|
|
211,835
|
|
Professional fees
|
98,077
|
|
167,054
|
|
Investor relations
|
43,036
|
|
82,756
|
|
Office expenses - Canada
|
48,265
|
|
83,616
|
|
Travel expenses
|
28,476
|
|
50,625
|
|
|
477,060
|
|
893,852
|
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 :
- Gold bearing
vein structures with variable widths ranging from 0.1 to 7 meters
and gold grades of up 20.2 g/t.
- Disseminated gold
mineralization associated with breccias in the quartzite rock with
gold grades up to 1 g/t, revealed by surface samples.
- 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
Julien Ouimet : jouimet@renmarkfinancial.com
John Boidman : jboidman@renmarkfinancial.com
Tel. : 514 939-3989
Fax : 514 939-3717
www.renmarkfinancial.com
|