MONTREAL, QUEBEC -- (Marketwire) -- 10/24/11 -- Dynacor Gold Mines Inc. ("Dynacor" or the "Company") (TSX: DNG) is pleased to announce the Board of Directors has approved the development of a new gold processing facility located on the Pan American Highway south of Nazca, Peru. The new state of the art gold processing plant will be built with an initial capacity of 300 tonnes per day and has been designed to be readily upgraded to 430 tonnes per day.
Dynacor has purchased the necessary land directly from the Government and intends to begin building its second gold processing plant in the first semester of 2012, as soon as the necessary environmental permit has been granted and financing secured. The Company has already submitted all the required documentation to obtain the water use permits and the engineering design of the new plant has been completed. As required by Peruvian law, the Company has prepared an environmental impact assessment which will be submitted this week to the relevant authorities as well as all the necessary documentation. This gold processing plant will include all of the Company's knowhow derived from operating the Acari ore processing facility for the last 12 years.
A budget of $4.5 million has been approved and will be funded through a combination of debt and working capital. When the new 300 tpd capacity facility is operational, the Company will be able to produce approximately 60,000 ounces of gold per year at this plant.
Demand for gold/silver and copper ore processing is continually growing in Peru since there are more than 50,000 artisanal small and medium scale miners in a country that is the 6th largest gold producer in the world. Our new location will support the accessibility of larger long-haul trucks to deliver greater tonnages of ore easily from all over Peru via the Pan American Highway. Furthermore, our new plant will be hooked up to the Peruvian national energy grid which will give us a considerable cost saving as well as decreasing our carbon footprint.
ABOUT DYNACOR GOLD MINES INC.
Dynacor is a gold exploration and mining company active in Peru through its subsidiaries since 1996. The Company's mining assets include its six exploration properties and its 200 tpd gold ore processing facility is located in southern Peru. The company purchases gold ore from small and medium sized miners from all over Peru. Dynacor processes the ore and then sells the gold on the world market. Dynacor's strength and competitive advantage comes with the experience and knowledge the Company has acquired while working in Peru for the last 12 years. Its pride remains in maintaining a respectful and positive work ethic toward its employees and partners as well as its sustainable development programs with 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.
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