kiniki
9 years ago
Financial Post article on Dynacor Gold - DNG
Dynacor: Back to Front
Resources Wire | Jay Currie | October 18, 2015 7:39 PM ET
More from Resources Wire | Jay Currie
Dynacor Huanca ore-processing mill with a current max capacity of 250 tonnes per day
Dynacor Gold MinesDynacor Huanca ore-processing mill with a current max capacity of 250 tonnes per day
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Dynacor: Back to Front
Conventionally a junior explorer finds a property, raises money, drills, raises more money and if things look promising, builds a mine and a mill.
Dynacor (T.DNG) is doing things in reverse.
Jean Martineau, Dynacor’s President and CEO came to junior mining exploration from the brokerage world, “I was a broker in the 1980’s.” said Martineau, “I was amazed at all the dilution I saw. And I was really frustrated. We needed a way to finance other than dilution.”
The creative solution to this problem was to build a small mill to process the ore mined by Peruvian artisanal miners. “We wanted to use the mill to finance our exploration.”
In 1996 Dynacor commenced construction of its custom gold ore-processing plant in southern Peru. It poured its first gold in 1998.
The mill started at a modest 50 tons per day but has been expanded to handle 250 tons per day. “We have established a reputation in Peru.” said Martineau, “We buy the ore from the small miners. We have achieved a 95% recovery rate which is the highest in Peru. We are looking for a gross margin of 17% and the mill generates between 7 and 10 million dollars a year in cash.”
Dynacor wanted the cash to finance exploration. It acquired its flagship property, Tumipampa, in 2000. The property was acquired because Dynacor found high grade gold veins at surface. Currently all of the land around Tumipampa is claimed by major mining companies such as Southern Copper, Buenaventura, Barrick, Yamana, IAMGold, Fresnillo and the Junefield Group from China.
Over the years the company has explored the property and discovered additional veins – and mantos – have been discovered with gold grades ranging from 6 grams per ton on up to 30 grams per ton.
Dynacor has conducted surface drilling programs to delineate the geology of the property. However, in 2012, Dynacor began to excavate a crosscut which allowed the exploration of the property to be conducted underground. “There is more information underground.” explained Martineau, “We have excavated a 2.5 by 3 meter cross-cut tunnel right through mantos and veins.”
Running off this main cross-cutt are drifts and chimneys which can be drilled or excavated to determine grade. In its October 8th 2015 press release, Dynacor was able to report channel sampling in a raise within the Manto Dorado which exposed a massive (35 meters) high-grade gold-bearing band of copper sulphides. The raise showed an average gold grade of 27.3 grams per ton and copper running an average of 2.19% with an average width of 1.2 meters.
October 15, 2015, Dynacor put out another press release outlining the results of further underground exploration. In this release Alonso Sanchez, Dynacor’s Chief Geologist commented “Our exploration results have clearly demonstrated the presence of high grade gold and copper mineralization in the SW and the NE extensions of the Manto Dorado.”
As the exploration work proceeds Dynacor is preparing a bulk sample of 1500 tons of material. “We’ll mill it ourselves.” said Martineau, “We can test our own ore in our own mill.”
The crosscut adit is being excavated by a local mine contractor and Martineau describes the rock coming out of the ground as mineralized material. It will be the rock used for the bulk sample. “Unlike the situation with many mines we don’t have to sink an expensive shaft before we can reach the mineralized zones. We are basically using local contractors to dig through to the target structures.”
“We hope to have a 43-101 ready by spring 2016.” said Martineau. “The objective of this first reserves/resources report is to apply for a mining permit and prepare a first production.“ As Dynacor is actually building a brand new 300 t/d mill in Chala, which is expected to be in operation in the second quarter of 2016, the actual Metalex mill could be available to be used as a pilot plant and, eventually to process ore coming out of Tumipampa in a first step. This will give the company time and money to finance the development of Tumipampa and build a larger new mill on the property.
“With more than 20 mineralized mantos and veins identified today, we are confident that this part of the property could host and important deposit.” Which would, in itself, make a very interesting mining prospect. However, the Tumipampa property also includes a large skarn and porphyry formation bearing copper and gold. “We are surrounded by gold and copper.” said Martineau, “It is disseminated mineralization. Very similar to the Constancia property being developed nearby by Hudbay Minerals. We’re exploring this structure and we will look in the future at all options available to develop this project if it appears viable.”
Having the cash coming in from its milling operations gives Dynacor a tremendous advantage. “We’ve looked at going to the market to raise funds; but, for example we looked in 2011 and the market was down so we decided not to. We’ve spent between 10 and 15 million dollars on the property so far. This year we’ll spend about 4 million. But we want to avoid dilution.”
With only 36.5 million shares outstanding and a market cap of $68.6 million, Dynacor doesn’t need to go to the market to finance advancing its project. Dynacor’s management and Board hold between 11 and 13% of the shares on a fully diluted basis and several institutions hold positions ranging from 3-7%.
“We don’t have any obligation to finance to survive. We make money from our mill.” said Martineau. In the current market it is an enviable position for a junior exploration company to be in.
kiniki
9 years ago
Dynacor Gold Mines Inc. Discovers new structures
TSX : DNG
OTC PINK : DNGDF
Dynacor Gold Mines Inc.
October 15, 2015 06:55 ET
Dynacor Discovers New Manto Structure and Receives Additional High Grade Gold Assays at Tumipampa, Peru
MONTREAL, QUEBEC--(Marketwired - Oct. 15, 2015) - Dynacor Gold Mines Inc. (TSX:DNG)(OTC:DNGDF) (Dynacor or the Corporation) is pleased to announce new results from its underground exploration campaign at Tumipampa. The results have confirmed both to the NW and to the NE of the Manto Dorado the presence of significant high grade gold and copper mineralization.
Exploration Highlights
Manto Dorado: Assay results have been received from an ongoing sampling program where previously channel samples from the Manto Dorado roof assayed an average of 36.48 g/t Au over 4.85 meters. Additional channel samples were taken in a new 19-meter long drift (Drift #190SW) and returned an average grade of 8.5 g/t Au over an average width of 1.35 m (including a channel sample grading 23.46 g/t Au);
Manto Nelly (A newly discovered mineralized structure): An 18-meter Drift # 190NW was excavated into the Manto and channel sampled revealing, an average grade of 4.8 g/t Au including a channel sample grading 12.51 g/t Au. 5.08 oz/t Ag and 2.32% Cu over 1.20 m;
Manto Nazareno: Raise #900 was extended for an additional 16 meters and channel sampled. Raise #900 now has a total length of 31 meters and an average gold grade of 8.87 g/t and 0.59 % copper;
Lisa vein: Excavation of a Raise #905 in the Lisa vein is underway. The raise is being excavated upwards from a 5-meter segment of Drift #910SW in the Lisa vein that had an average grade of 16.11 g/t gold over 1.94 meters including 55.60 g/t Au (uncut assay) over 0.90 m (see Press Release May 7. 2015).
The complete results for the Manto Dorado (Drift #190SW) are given in Table 1. the Manto Nelly (Drift #190NW) in Table 2 and for Manto Nazareno (Raise #900) in Table 3. Figures 1 and 2 give a composite view of level 350 showing the location of the mineralized Mantos as well as Drifts #190SW and #190NW and Raise #900 and Raise #905. All the reported channel sample and structure widths are true widths.
Results
Manto Dorado
From the 170-meter mark along cross-cut 330NW a 125-meter long by-pass gallery was excavated in order to reach the rich mineralization found in the Manto Dorado intercepted by drill hole HDD07-2015 grading 10.21 g/t Au over 3.69 m and the Manto Dorado split grading 3.99 g/t Au over 2.70 m (Press Release July 16. 2015).
From the end of the by-pass a 19-meter long drift (Drift #190SW) was excavated into the Manto Dorado and 15 channel samples returned an average grade of 8.50 g/t Au. 1.95 oz/t Ag and 0.80% Cu over an average width of 1.35 m. including a channel sample grading 23.46 g/t Au. 1.25 oz/t Ag and 1.70% Cu over a width of 0.70 m (see Table 1 and Figure 1).
Manto Nelly
At the very end of Drift 190SW. a new mineralized structure was discovered (Manto Nelly) which is orientated N49°W. An 18-meter long drift (Drift #190SW) was excavated along Manto Nelly and channel sampling returned an average grade of 4.80 g/t Au. 1.46 oz/t Ag and 0.80% Cu over an average width of 1.50 m. including a channel sample grading 12.51 g/t Au. 5.08 oz/t Ag and 2.32% Cu over a width of 1.20 m (Table 2 and Figure 1).
Manto Nazareno
In the Manto Nazareno, Raise #900 was further extended by an additional 16 meters since very positive gold and copper assays had been obtained in the first 15-meter segment which found an average grade of 12.14 g/t Au. 0.49 oz/t Ag and 0.80 % Cu with an average width of 1.44 meters. Very high grade channel samples included 118 g/t Au and 1.39 % Cu over 0.4 meters. 101 g/t Au and 0.69 % Cu over 0.45 m. and 6.35 g/t Au and 3.75 % Cu over 0.45 meters (for the full set of data refer to Press Release dated September 3. 2015).
Channel sampling in the additional 16-meter segment returned an average of 6.47 g/t Au. 0.32 oz/t Ag and 0.45% Cu. including a channel sample grading 25.80 g/t Au. 0.32 oz/t Ag and 0.03% Cu over 1.30 m (Table 3 and Figure 2).
All told thirty-two channel samples from 14 sampling sites were analysed along Raise #900 and the averaged results are given in Table 3. Over its entire 31-meters Raise #900 has an average gold grade of 8.87 g/t and 0.59 % copper over an average width of 1.46 meters.
To conclude, Alonso Sanchez, Dynacor's Chief Geologist recently commented "Our exploration results have clearly demonstrated the presence of high grade gold and copper mineralization in the SW and the NE extensions of the Manto Dorado. To the SW. Drill hole HDD07-15 led to the discovery of the Manto Raquel and a split of the Manto Dorado (see press release 16th of July 2015) as well as a an area of significant gold mineralization. These results have now been confirmed by the results obtained in Drift #190SW and the discovery of the Manto Nelly. To the NE. the spectacular results obtained in Raise #215 and Drift #190NE (see Press Release dated October 8. 2015 and December 19. 2013) also confirm very significant gold mineralization in the NE extension of the Manto Dorado. All told these results are very promising and Dynacor will continue to explore these areas by the excavation of additional drifts and raises during the coming months."
Sample Analysis and QA/QC procedures
The samples are sent to the internationally certified laboratory Certimin S.A. for analysis. Samples were assayed by ICP analysis and FAA gravimetric finish assay methods, Standards. blanks and duplicates are used in the sampling process as part of the QA/QC which is implemented and followed by Alonso Sanchez. Chief Geologist for Dynacor Gold Mines. B.Eng.
This Press Release has been read and approved by Alonso Sanchez. P. Eng. and Chief Geologist for Dynacor Gold Mines. He acts as the qualified person ("QP") for the Company and is a geologist affiliated to the American Institute of Professional Geologists (AIPG).
Table 1. Channel Sample Assays from Drift #190SW Manto Dorado, Tumipampa
Channel Sample No Width(m) Au (g/t) Ag (oz/t) Cu ( %)
10126 0.70 1.76 1.15 0.54
10127 0.70 4.96 1.12 0.24
10109 1.80 5.09 2.24 0.18
10129 1.60 14.00 3.73 1.08
10130 1.80 21.16 2.74 0.81
10111 1.50 1.27 0.06 0.01
10112 1.60 4.43 1.30 1.02
10113 1.80 6.76 2.40 1.55
10133 1.10 2.84 1.47 0.35
10116 1.00 13.96 1.19 1.14
10134 1.50 2.21 0.82 1.07
10118 1.50 6.09 0.42 0.35
10136 0.70 23.46 1.25 1.70
10119 0.80 9.03 5.11 2.14
10138 0.70 20.42 7.36 0.65
Weighted Average 19-meter Segment 1.35 8.50 1.95 0.80
Table 2. Channel Sample Assays from Drift #190NW Manto Nelly. Tumipampa
Channel No Width(m) Au (g/t) Ag (oz/t) Cu ( %)
10122 1.40 10.33 1.81 1.69
10100 1.20 6.89 3.76 2.54
10102 1.20 12.51 5.08 2.32
10105 1.80 5.32 0.83 0.18
10182 1.50 7.56 1.54 1.02
10107 1.30 4.98 0.55 0.15
10183 1.50 3.27 1.90 2.05
10198 2.00 3.70 0.59 0.20
10188 1.40 1.20 0.83 0.14
10199 2.10 1.14 0.68 0.15
10190 1.40 1.32 0.76 0.13
10282 1.90 3.67 0.83 0.23
10193 0.80 4.13 1.86 0.23
10194 2.00 4.24 0.83 0.07
10196 1.20 5.50 0.74 0.08
10197 2.00 2.02 1.72 0.26
Weighted Average in the 18-meter segment 1.50 4.80 1.46 0.80
Table 3. Channel Sample Assays from Raise-900 Manto Nazareno. Tumipampa
Distance along Raise-900 (meters) Width (m) Au (g/t) Ag (oz/t) Cu ( %)
September 2015 Data published in September 2015
0 1.40 0.97 0.33 0.61
3 1.20 2.61 1.10 0.57
6 1.75 26.34 0.19 0.19
9 1.30 0.87 0.33 1.28
12 1.60 3.33 0.74 1.67
15 1.40 34.27 0.34 0.48
Weighted Average 15-meter segment 1.44 12.14 0.49 0.80
October 2015 Width (m) Au (g/t) Ag (oz/t) Cu ( %)
17 1.30 5.06 0.35 0.37
19 1.50 2.05 0.58 0.94
21 1.80 5.17 0.22 0.82
23 1.55 2.18 0.19 0.26
25 1.60 2.02 0.30 0.84
27 1.40 9.65 0.49 0.08
29 1.30 25.80 0.32 0.03
31 1.35 2.74 0.14 0.00
Weighted Average 16-meter segment 1.48 6.47 0.32 0.45
Weighted Average 31-meter segment 1.46 7.36 0.40 0.62
ABOUT DYNACOR GOLD MINES INC.
Dynacor is a gold ore-processing and exploration Corporation active in Peru since 1996. The Corporation differentiates itself from pure exploration companies as it generates income from its wholly owned ore-processing plant. Dynacor's basic share count at 36.5 million outstanding is in the lowest quartile of the resource sector. The Corporation's assets include three exploration properties, including the advanced high-grade gold Tumipampa property and an operating 85.000 TPA gold and silver ore processing mill at Metalex-Huanca. The Corporation obtained its permit to construct a brand new 300 tpd mill in Chala Peru. This represents an important milestone for the Corporation's future growth. The Corporation's strength and competitive advantage comes with the experience and knowledge it 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. (TSX:DNG)
Website: http://www.dynacorgold.com
Twitter: http://twitter.com/DynacorGold
Facebook: http://www.facebook.com/pages/Dynacor-Gold-Mines-Inc/222350787793085
Shares outstanding: 36 516 736
To view the images accompanying this press release, please visit the following links:
Figure 1: http://media3.marketwire.com/docs/dynFigure1.jpg
Figure 2: http://media3.marketwire.com/docs/dynFigure2.jpg
CONTACT INFORMATION
Jean Martineau
President and CEO
Dynacor Gold Mines Inc.
T: 514-393-9000 Ext. 228
Dale Nejmeldeen
Investor Relations
Dynacor Gold Mines Inc.
T: 604.492.0099
M: 604.562.1348
nejmeldeen@dynacor.com
kiniki
9 years ago
Dynacor Gold Mines Inc.
October 08, 2015 10:15 ET
Dynacor-Tumipampa: A Raise in the Manto Dorado Returns 27.26 g/t (0.88 oz/t) Gold and 2.19% Copper Over 35 Meters
MONTREAL, QUEBEC--(Marketwired - Oct. 8, 2015) -
Note to editors: Three graphs and an image are included with this press release on Marketwired's website.
Dynacor Gold Mines Inc. (TSX:DNG) (OTC:DNGDF) (Dynacor or the Corporation) is pleased to announce sampling results of a raise excavated in the Manto Dorado on the Tumipampa project, Peru.
Channel sampling in a raise within the Manto Dorado has exposed a massive (35 meters) high-grade gold-bearing band of copper sulphides. A further 60 meters of excavation of this highly mineralized raise is underway in order to reach the surface. To date, 35 meters have been excavated and the raise (#215) has an average gold grade of 27.3 g/t (0.88 oz/t) and 2.19% copper and an average width of 1.2 meters. The results include twelve (12) channel samples with uncut gold assays between 31.1 g/t (1 oz/t) and 76.2 g/t (2.45 oz/t) and including fifteen (15) channel samples with uncut copper assays between 2% and 8.7%. (see Figures 1 and 2).
Jean Martineau, Dynacor's President and CEO has stated "We are very happy to see the assays demonstrate the rich grades of gold and copper in this latest set of results from the Manto Dorado. Additional underground exploration results are pending and will be published as soon as they are ready. Thereafter, we are planning to test run at the Huanca-Metalex plant a large bulk sample of approximately 1,500 metric tonnes of mineralized material from Tumipampa."
Results
Raise-215 was excavated from the 27.5-meter mark along a 45-meter drift (Drift-190NE) orientated N45°E that was excavated in the Manto Dorado structure. The first 26.0 m of the Drift-190E returned high gold grades of 27.8 g/t Au and 1.69% Cu over a width of 1.5 m. Raise-215 was excavated in two steps. Six (6) meters in 2013 which returned an average grade of 21.6 g/t Au, and 2.14% Cu over an average width of 1.01 m (see press release dated December 19, 2013) and was recently extended a further twenty-nine (29) meters in 2015 adding up to a total of 35 meters (see Figure 3).
All told thirty-seven channel samples were analysed along Raise-215 and the detailed results are given in Table 1. Raise-215 has an average gold grade of 27.3 g/t (0.88 oz/t) and 2.19% copper over 35 meters with an average width of 1.2 meters. Certain channel samples had very high grades of up to 76.2 g/t Au (2.45 oz/t) and 8.7% copper (see Photo 1, below). Two graphs showing the gold and copper grades along the entire 35-meter raise are given in Figure 1 and 2 above.
Sample Analysis and QA/QC procedures
The samples are sent to the internationally certified laboratory Certimin S.A. for analysis. Standards, blanks and duplicates are used in the sampling process as part of the QA/QC that is implemented and followed by Alonso Sanchez, Chief Geologist for Dynacor Gold Mines, B.Eng.
This Press Release has been read and approved by Alonso Sanchez, P. Eng. and Chief Geologist for Dynacor Gold Mines. He acts as the qualified person ("QP") for the Company and is a geologist affiliated to the American Institute of Professional Geologists (AIPG).
Table 1. Channel samples from Raise-215 with data from 2013 and 2015
Distance along
Raise-215 (m) Width (m) Au (g/t) Au (oz/t) Cu (%)
Data published in December 2013
0.75 1.40 6.40 0.21 0.37
1.50 0.70 15.72 0.51 2.21
2.25 1.30 12.97 0.42 0.67
3.00 0.45 28.94 0.93 8.66
3.75 0.90 43.51 1.40 7.54
4.50 1.60 22.08 0.71 1.11
5.25 0.80 36.95 1.19 1.35
6.00 0.90 22.59 0.73 0.84
Weighted Average 6 m
segment 2013 data 1.01 21.64 0.69 2.14
2015 Width (m) Au (g/t) Au (oz/t) Cu (%)
7 1.6 42.2 1.36 3.52
8 1.6 22.2 0.71 2.28
9 1.7 20.2 0.65 0.29
10 1.3 7.6 0.24 1.30
11 1.3 11.4 0.37 1.77
12 1.1 25.6 0.82 4.98
13 1.2 47.8 1.54 3.23
14 1.3 39.8 1.28 2.68
15 1.0 23.1 0.74 6.73
16 1.3 23.2 0.75 2.54
17 1.3 24.0 0.77 3.26
18 1.2 12.1 0.39 1.29
19 1.2 8.9 0.29 0.64
20 1.3 59.0 1.90 1.87
21 1.3 3.1 0.10 0.39
22 1.2 43.6 1.40 3.22
23 1.2 36.0 1.16 1.21
24 1.3 53.6 1.72 4.43
25 1.2 51.8 1.66 1.25
26 1.1 8.7 0.28 1.53
27 1.2 66.4 2.14 4.86
28 1.1 76.2 2.45 3.28
29 1.1 29.0 0.93 2.29
30 1.1 31.6 1.01 2.64
31 1.2 3.4 0.11 0.78
32 1.2 31.2 1.00 0.72
33 1.1 4.1 0.13 0.87
34 1.1 9.8 0.32 0.12
35 1.3 11.8 0.38 1.13
Weighted Average 29 m
segment 2015 data 1.24 28.52 0.92 2.20
Weighted Average total 35m Raise-215 1.19 27.26 0.88 2.19
ABOUT DYNACOR GOLD MINES INC.
Dynacor is a gold ore-processing and exploration Corporation active in Peru since 1996. The Corporation differentiates itself from pure exploration companies as it generates income from its wholly owned ore-processing plant. Dynacor's basic share count at 36.5 million outstanding is in the lowest quartile of the resource sector. The Corporation's assets include three exploration properties, including the advanced high-grade gold Tumipampa property and an operating 85,000 TPA gold and silver ore processing mill at Metalex-Huanca. The Corporation obtained its permit to construct a brand new 300 tpd mill in Chala Peru. This represents an important milestone for the Corporation's future growth. The Corporation's strength and competitive advantage comes with the experience and knowledge it 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. (TSX:DNG)
Website: http://www.dynacorgold.com
Twitter: http://twitter.com/DynacorGold
Facebook: http://www.facebook.com/pages/Dynacor-Gold-Mines-Inc/222350787793085
Shares outstanding: 36 516 736
To view the images accompanying this press release, please visit the following links:
Figure 1: http://file.marketwire.com/release/fig1_en.jpg
Figure 2: http://file.marketwire.com/release/fig2_en.jpg
Figure 3: http://file.marketwire.com/release/fig3_en.jpg
Photo 1 High grade mineralization in Raise-215, Tumipampa September 2015 :
http://file.marketwire.com/release/Photo%201%20High%20grade%20mineralization%20in%20Raise-215%20Tumipampa%20September%202015.JPG
CONTACT INFORMATION
Jean Martineau
President and CEO
Dynacor Gold Mines Inc.
514-393-9000 Ext. 228
Dale Nejmeldeen
Investor Relations
Dynacor Gold Mines Inc.
604.492.0099 / M: 604.562.1348
604.608.9223 (FAX)
nejmeldeen@dynacor.com
kiniki
9 years ago
near term outlook
Exploration Tumipampa
Drill results coming from the Manto Dorada, Manto Nazareno & Lisa Vein in october
- 4+ holes were drilled into these structures from the surface and results from these structures are also coming from underground inside the crosscut.
Drill results coming from the surface of the new outcrop findings
Crosscut #1 - Sept 3rd news release said they have crosscut 622metres out of the total 675 they set to go. 53 mtres to go. At 3 mtrs/day means they have finished the cross cut now.
Now that the cross cut is finished they should be building the drilling room, which they will use to to further explore the Manto Dorado, Manto Nazareno and Lisa Vein to test the depth and further the length and discover the enrichment/ bonanza zones.
This drill room will also be instrumental in shoring up our first NI-43 101.
Crosscut #2 - Total length is 485 mtrs, it is currently excavated to 183 mtrs. On sept 9th they reached the NE extension of the Manto Dorado, so these results are just around the corner too.
Using an excavation rate through the crosscut of 3 mtrs per day DNG has aprox 90 days to go before they get to the end of the 2nd crosscut. There is very good potential new structures will be discovered along the way.
SKARN
Excitment is building from recent surface sample discoveries on zone 3&4 of the skarn, which are being drilled now. This is very exciting because the structure and findings are noted by a geologist from a nearby discovery as being exactly like what he discovered on there well known property.
ORE PRODUCTION DIVISION
Chala - (the brand new cost efficient production facility)
Expecting photo update in October
Construction progress update coming in October
Huanca- (exisitng 300tpd production faciltiy)
3rd quarter production & operations news update coming in October
construction update coming in October
Louse James, analyst from Casey Research visited Chala & Tumipampa at the end of September (report coming soon)
As you can see there is much going on in quarter 4.
I expect all of the this news and the completion nearing at Chala to reignite this stock ....it looks like that is happening already...
this week should be interesting.
bini
13 years ago
cash flow will rule
dynacor is averaging about 16% profit margin over the last ten years. their projections of 45,000 oz in 2011 at roughly $1500 gold would give $67.5 million in revenue. In 2012 the company would like to add another mill of approximately 300 tpd to their portfolio. if they can execute this expansion, production could essentially ramp up to over 500 tpd in 2012. think about it... 500 tpd would produce about 125,000 ounces at a head grade of .77 oz/t. if gold averages $2000/oz in 2012, dynacor's revenues at 500 tpd would be $250 million.
$250 million in revenue at the avergage of 16% equates to $40 million. considering in the last two reporting years the company improved its profit margin to 19%, one could believe profits of $50 million and more is in the cards.
$50m divided into $35 million o/s is $1.43 profit per share.
analyst nicholas campbell from canaccord recently mentioned 2012e cash flow per share in junior producers is averaging 9.5 times. i expect 9.5 times to be blown out of the water as we move closer to the end of the year. in fact i would venture to predict we will see at least 20 times cash flow per share for the junior producers before the year is over.
hearing news is imminent from production and exploration. when the drills start up again it could get ineteresting... and think of the reaction if they announce a new cross cut campaign is in the works...
let's see: 500 tpd from gold production, drills turning at tumipampa and a new underground mine development plan... nice for a company with 35 million shares out.
i think dng will awaken from its summer time hibernation without warning.
long and strong
Pro-Life
13 years ago
Dynacor Gold Mines Reports an Adjusted EBITDA of $2.1M in Q2-2011
Date : 08/15/2011 @ 7:00AM
Source : MarketWire Canada
Stock : Dynacor Gold Mines Inc. (DNG)
http://www.marketwire.com/press-release/dynacor-gold-mines-reports-an-adjusted-ebitda-of-21m-in-q2-2011-tsx-dng-1549356.htm
Sales during the second quarter surged to $18.1 million compared to sales of $8.8 million in the second quarter of 2010, an increase of 106%. Dynacor sold 11,530 ounces of gold compared to 7,234 ounces in the second quarter of 2010, an increase of 59%.
WOO HOO!!! For the complete release, click the link above...
kiniki
13 years ago
I was recently in Peru. I had an opportunity to tour the Dynacor head office in Lima and visit the Acari mill 9 hrs south of the capital. I met the senior management and was able to engage in several informative meetings with the head geologist Alonso Sanchez and President/CEO Jean Martineau. These guys are very excited about the prospects of Tumipampa and the future expansion plans for the mill and company.
Peru is buzzing with economic excitement and you can see signs of the mining industry everywhere. No wonder, considering 50% of the country's industry comes from mining. The government just recently announced it is almost doubling its mining budget, which would increase their portfolio of mining from $24 billion to $42 billion. More than 200 junior mining companies, the majority of which are Canadian, are currently exploring for resources throughout the country.
Tumipampa is Dynacor's flagship property located close to Las Bambas; Xstrata is currently investing $4.2 billion into their property. The money is flowing into this area right now and I am told that Tumipampa is being watched closely by the industry and the Chinese. China is now Peru's number one trading partner.
Currently at the Tumipampa skarn, zone two of the four zones currently targeted for the first drill campaign has been drilled (drill hole two & three are in the lab). The geologist made it very clear that zone four and three (in order of most probable) are the targets he is most excited about (these zones had the largest outcroppings and the most significant anomalous samples). Zone 4 is next to be drilled (drill rig is there now) and then followed up with zone three and zone one. He expects to be drilling with one rig for now; after the rainy season, perhaps as many as four more rigs will be brought to the project.
Sanchez feels there is a minimum of 200mt to a maximum of 1bt of ore at the Tumipampa skarn, which include both significant gold and copper mineralization at grades of 0.30 - 1.4 g/t gold and 0.40 - 1.2% copper. I crunched the numbers for the skarn range predicted, using Hudbay's latest acquisition of Norsemont's Constancia's
.10/lb as a comparable for copper and 7% of gold spot price for gold and I got $368M to $7.1B.
He felt he should have a good understanding of how many tones Tumipampa has by the summer/fall. By this time they will have all the diamond drill results of all four zones complete. We should be looking for drill results that are higher than 0.30% copper, which seems to be the cut off for other copper skarn mines in the area. If the drill results are higher than .3% then it's economic. As for gold anything over 0.05% g/t would be realistic for a large bulk minable deposit.
Now you are most likely wondering....well how good is the geologist? I did some research on Alonso Sanchez and found that he is not only a geologist, but actually a sought after economic geologist. Sanchez has 10 years of experience with NYSE listed Buenaventura where he worked in both the exploration and mining division of the firm. This may explain his strategy of wanting to crosscut into Tumipampa's fifteen veins for immediate production, cash flow and additional intercepts through the development of the adit. Buenaventura is known for this method of production and exploration throughout the country.
I found out that the geologists in the area compare notes and was glad to hear that Sanchez went to Norsemont (recently bought out by Hudbay Minerals for $520 million - 277mt at .43% cu), Las Chances (Southern Copper) and Las Bambas (Xstrata) with his findings and samples and discovered that what he found at Tumipampa was identical to what they had discovered on their properties, except Tumipampa is indicating more gold. Sanchez stopped at Bonaventura to confirm his findings where he worked previously for 10 years and maintains an ongoing relationship with their team.
It was interesting to find out Tumipampa has disseminated mineralization on the property showing same characteristics as Barrick's Laguna Norte deposit that still needs to be explored with possibly one or two drill holes this fall. There are also fifteen gold veins discovered now and I was told these veins alone have 1-1.5 million ounces of gold. Martineau explained that it would not take much to set up a mill like the one they have at Acari and start producing their own gold out of the Tumipampa veins within 18 months. I felt he was seriously thinking of this, but had a better sense that this property could be sold before they could get this done if it reaps the rewards they expect. While sitting down for coffee, he mentioned he would like to retain the 100% ownership of the veins, disseminated, milling business and Casaden by way of spinning out a new company after selling the skarn separately. The original shareholders of DNG would of course be rewarded with new shares of the new co.
As for the trip to Acari...it was a long, very dusty, cliff hanging rugged road through the mountains to the mill. The mill was under tight security. Once inside, I got a full tour of the operations. Prior to my visit, I questioned the availability of ore to the mill. The last thing you want to do is run out of ore. No ore means no gold which means no cash flow. To my satisfaction, they had over 3000 tones of ore sitting waiting to be processed and the trucks just kept arriving with more ore over the two hours I was there. I was told 9-12 trucks arrive on a daily basis. It was confirmed that there is never a shortage of ore due to the hundreds of thousands of producers throughout the country that do not have the ability to process their own ore.
I often wondered about mill maintenance. With all the moving parts in a mill, it's would be easy for mechanical breakdowns...no mill means no gold which means no cash flow again. I was quick to learn there is a full mechanical staff at the site. It also seemed like every 2nd shop in every town along the route from Lima to Acari had a machine repair shop of some sort. While at the mill, I was told that one of the 3 ball crushers was failing and that another larger ball mill was already on order from Lima. It pays to have a mill in a country in which 50% of the industry is mining because everything is right there when you need it. Out of all the South American countries, the Peruvians have the best work ethic. They work hard; their priorities in life are to own their own home and educate their children. This says a lot about the future of Peru.
I also found out that permits have been submitted for a new mill. Apparently DNG owns property that is very close to the fully paved Pan American highway. The plan is to move the existing mill to the highway property within the next 18 months. This new location will allow access by large semi 18 wheel trucks therefore increasing the amount of ore that can be delivered to the property. This new mill will be built to process over 300tpd.
I don't think there are any companies out there currently cash flowing 10M and having a market cap of 55M, with a drilling campaign currently on that could have similar potential to Norsmont (recently taken over by Hudbay Minerals for $520M), Antares Minerals (recently taken over by First Quantum late 2010 for $460M). Additionally, consider Las Bambas mine, owned by Xstrada, being very close to their property in which $4.2B is being invested.
With 70% of this stock being held mostly by institutions such as Sprott, AGF, Trapeze and Sabretooth Master Fund from NY (they have been insider buying recently). There are definitely strong supporters behind this company.
2010 annual report and Q1 are looking like they will be positive news releases for Dynacor.
kiniki
13 years ago
I just met with the CEO and he explained to me that the surface and channel samples that were taken during Q4 2010 are positive and consistent with all prior samples. This is great news because there are well over 1000 samples now that have proven positive that Tumipampa is sitting on something big. This information will be disclosed in a news release very soon.
I also asked him about Tumipampa and why everyone is so excited about the property. Boy did he light up...body language and facial expressions tell a 1000 words alone, not including that he told me they have been exploring the property since 2000. Most people do not realize there is over 10 years of exploration on the property already. They have drilled the property and found a lot of rich gold veins, and more recently discovered the highly mineralized scarn, which is 4.2kmX1.2 kms. From the geologist eyes, it's like the perfect storm or all the stars have aligned.
The drills are turning on the scarn and there is a big push to get results published asap. The current drilling campaign will unveil the full potential of the scarn within the next 8 months.
If the first drill results are positive DNG will add subsequent drills to speed up the campaign.
One thing Mr Martineau pointed out, which sticks in my head and brings me great comfort this stock will hold it value, is their custom milling operation business model at Acari is a fully operational business on its own. It does not matter if they have any properties to explore! This mill is penned out to bring in over 9 million dollars gross cash margin in 2011. You work with these numbers and you will find that at the current share price the company is still very undervalued.
Hr Martineau explained that high grad viens that already have been discovered at Tumipampa could be used for their owm mine prouction, thus increasing profit margins considerably. A new mill like Acari would have to be built at Tumipampa for this.
He mentioned they are adding another cyanidation tank to the mill at Acari, which will advance the tpd from 165 to 180. This means more cash in the bank to continue the already enormous drilling/exploration campaign and give further support to the stock price and company value.
Mr. Martineau has been with the company since 1996. He is sincerely passionate and knowledgeable about the company and I can confidently say he has the shareholders best interest in mind.
kiniki
13 years ago
I just met with the CEO and he explained to me that the surface and channel samples that were taken during Q4 2010 are positive and consistent with all prior samples. This is great news because there are well over 1000 samples now that have proven positive that Tumipampa is sitting on something big. This information will be disclosed in a news release very soon.
I also asked him about Tumipampa and why everyone is so excited about the property. Boy did he light up...body language and facial expressions tell a 1000 words alone, not including that he told me they have been exploring the property since 2000. Most people do not realize there is over 10 years of exploration on the property already. They have drilled the property and found a lot of rich gold veins, and more recently discovered the highly mineralized scarn, which is 4.2kmX1.2 kms. From the geologist eyes, it's like the perfect storm or all the stars have aligned.
The drills are turning on the scarn and there is a big push to get results published asap. The current drilling campaign will unveil the full potential of the scarn within the next 8 months.
If the first drill results are positive DNG will add subsequent drills to speed up the campaign.
One thing Mr Martineau pointed out, which sticks in my head and brings me great comfort this stock will hold it value, is their custom milling operation business model at Acari is a fully operational business on its own. It does not matter if they have any properties to explore! This mill is penned out to bring in over 9 million dollars gross cash margin in 2011. You work with these numbers and you will find that at the current share price the company is still very undervalued.
Hr Martineau explained that high grad viens that already have been discovered at Tumipampa could be used for their owm mine prouction, thus increasing profit margins considerably. A new mill like Acari would have to be built at Tumipampa for this.
He mentioned they are adding another cyanidation tank to the mill at Acari, which will advance the tpd from 165 to 180. This means more cash in the bank to continue the already enormous drilling/exploration campaign and give further support to the stock price and company value.
Mr. Martineau has been with the company since 1996. He is sincerely passionate and knowledgeable about the company and I can confidently say he has the shareholders best interest in mind.
kiniki
13 years ago
Check out this NEW video clip coverage on DNG!
http://www.investmentpitch.com/media/763/Dynacor_Gold_Mines_TSX:_DNG_News_Alert/
I have been following Dynacor for 2 yrs and have been consistently
adding it to my holdings over the last year. I will continue to load
up.... I'm long and confident this stock will continue it's positive
performance. Here is why... and in no particular order of importance.
1/ DNG owns a "cash flow machine" the "Acari custom milling plant"
located in Peru . Simply put, they purchase ore from local ma and pa
miners and process it at the Acari mill.
They are ramping up gold sales production to full capacity of 180
tonnes per day in 2011; this should generate between 45-50,000 ounces
of gold sales while maintaining a healthy $200+/oz of cash gross
margins (as compared to last quarter reported $237/oz) for a gold> exploration company.
This works out to 10 - 12 mill gross cash profit in 2011! Which
brings me to point #2.
#2 - share dilution - there isn't any!
That`s right, DNG does NOT dilute share holdings, they have a fully
operational business that earns income and protects the value of your
shares.
I don't know any other jr. exploration company that has cash flow.
Most have to issue more shares to fund their habit. This continually
de values the shares of the initial investors. Over time there ends up
being so many shares that the company is virtually worthless. This is
the Achilles heel of jr exploration companies!
DNG is fully diluted at 39 million shares.( 59% are held by major
institutions and insiders)
#3- Cash flow from the Acari mill is funding a $5.4 million drilling
campaign in 2011 - should see 1st results very soon.
#4-Their 3 properties in Peru. Tumipampa, Casaden and Acari.
Tumipampa their flagship property is located in a "hot spot". Its
located on one of the riches copper/gold belts in Peru and is
surrounded by world class deposits - xstrata's las bambas and southern
copper's los chances. Several publicly traded companies in the area
have been recently bought out or are presently in negotiations.
As NYC Jay Taylor quoted in his last news letter " Dynacor's flagship
Tumipampa property could become a world-class gold-copper deposit." He
says the company's market capitalization could increase by a factor of
10 or even 50 if this potential is realized."
DNG was his #1 stock pick and he also claimed it has the potential to
be a" moon shot". My buying decision does not come from JT, but his
research supports my findings. It also doesn't hurt that JT has a
loyal following which he has built over 20 plus years, which clearly
has an impact and helps get the story out there. He also gave DNG a
glowing report in his last interview on BNN.
Tumipampa has already shown very positive results as they have been
drilling and exploring since 2000 so they know what they are sitting
on (4.5km X 1.5km skarn deposit). The beautiful thing for investors NOW is,
nobody really knows about the company.
I would not be surprised if a big player buys out Tumipampa.
Casaden and Acari have a good story too, but all the emphasis is on
Tumipampa right now.
#5- Management - has stood the test of time. Over the past two years
that I have been following them, they have consistently under promised
and over delivered. Straight up management team out of Montreal. Their
objective is to build a strong solid company and they do NOT have a
p&d mentality.
6-Dynacor made the "top five" of Top Rebounding Canadian Stocks listed
on the Toronto Stock Exchange in 2010 as well as the "top ten" of Best-
Performing Canadian Stocks Year-to-Date list
http://www.nasd100.com/2010/12/top-rebounding-canadian-stocks-dec-26-2010.html
http://www.nasd100.com/2010/12/best-performing-canadian-stocks-year-to-date-dec-28-2010.html
Performance is important because it puts DNG on bigger players
radar.
#7-Market cap is less than other gold exploration companies in the
same region that do not have a dime to speak of in the way of cash
flow to fund their exploration campaigns. Additionally the company's
annualized price to cash flow ratio is quite undervalued when compared
to the gold industry average of 34 times.
http://finance.yahoo.com/news/Using-the-Price-to-Cash-Flow-zacks-4240796903.html?x=0&.v=1.
Dynacor offers the lower risk and value play of a solid cash flowing
business model while at the same time offers the potential to reap theexplosive rewards of an exploration stock via the drill results. The Company is truly in a niche of its own; therefore, market valuation,
in the opinion of many, is not yet justified.
kiniki
13 years ago
Check out this NEW video clip coverage on DNG!
http://www.investmentpitch.com/media/763/Dynacor_Gold_Mines_TSX:_DNG_News_Alert/
I have been following Dynacor for 2 yrs and have been consistently
adding it to my holdings over the last year. I will continue to load
up.... I'm long and confident this stock will continue it's positive
performance. Here is why... and in no particular order of importance.
1/ DNG owns a "cash flow machine" the "Acari custom milling plant"
located in Peru . Simply put, they purchase ore from local ma and pa
miners and process it at the Acari mill.
They are ramping up gold sales production to full capacity of 180
tonnes per day in 2011; this should generate between 45-50,000 ounces
of gold sales while maintaining a healthy $200+/oz of cash gross
margins (as compared to last quarter reported $237/oz) for a gold> exploration company.
This works out to 10 - 12 mill gross cash profit in 2011! Which
brings me to point #2.
#2 - share dilution - there isn't any!
That`s right, DNG does NOT dilute share holdings, they have a fully
operational business that earns income and protects the value of your
shares.
I don't know any other jr. exploration company that has cash flow.
Most have to issue more shares to fund their habit. This continually
de values the shares of the initial investors. Over time there ends up
being so many shares that the company is virtually worthless. This is
the Achilles heel of jr exploration companies!
DNG is fully diluted at 39 million shares.( 59% are held by major
institutions and insiders)
#3- Cash flow from the Acari mill is funding a $5.4 million drilling
campaign in 2011 - should see 1st results very soon.
#4-Their 3 properties in Peru. Tumipampa, Casaden and Acari.
Tumipampa their flagship property is located in a "hot spot". Its
located on one of the riches copper/gold belts in Peru and is
surrounded by world class deposits - xstrata's las bambas and southern
copper's los chances. Several publicly traded companies in the area
have been recently bought out or are presently in negotiations.
As NYC Jay Taylor quoted in his last news letter " Dynacor's flagship
Tumipampa property could become a world-class gold-copper deposit." He
says the company's market capitalization could increase by a factor of
10 or even 50 if this potential is realized."
DNG was his #1 stock pick and he also claimed it has the potential to
be a" moon shot". My buying decision does not come from JT, but his
research supports my findings. It also doesn't hurt that JT has a
loyal following which he has built over 20 plus years, which clearly
has an impact and helps get the story out there. He also gave DNG a
glowing report in his last interview on BNN.
Tumipampa has already shown very positive results as they have been
drilling and exploring since 2000 so they know what they are sitting
on (4.5km X 1.5km skarn deposit). The beautiful thing for investors NOW is,
nobody really knows about the company.
I would not be surprised if a big player buys out Tumipampa.
Casaden and Acari have a good story too, but all the emphasis is on
Tumipampa right now.
#5- Management - has stood the test of time. Over the past two years
that I have been following them, they have consistently under promised
and over delivered. Straight up management team out of Montreal. Their
objective is to build a strong solid company and they do NOT have a
p&d mentality.
6-Dynacor made the "top five" of Top Rebounding Canadian Stocks listed
on the Toronto Stock Exchange in 2010 as well as the "top ten" of Best-
Performing Canadian Stocks Year-to-Date list
http://www.nasd100.com/2010/12/top-rebounding-canadian-stocks-dec-26-2010.html
http://www.nasd100.com/2010/12/best-performing-canadian-stocks-year-to-date-dec-28-2010.html
Performance is important because it puts DNG on bigger players
radar.
#7-Market cap is less than other gold exploration companies in the
same region that do not have a dime to speak of in the way of cash
flow to fund their exploration campaigns. Additionally the company's
annualized price to cash flow ratio is quite undervalued when compared
to the gold industry average of 34 times.
http://finance.yahoo.com/news/Using-the-Price-to-Cash-Flow-zacks-4240796903.html?x=0&.v=1.
Dynacor offers the lower risk and value play of a solid cash flowing
business model while at the same time offers the potential to reap theexplosive rewards of an exploration stock via the drill results. The Company is truly in a niche of its own; therefore, market valuation,
in the opinion of many, is not yet justified.
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