Press release from Marketwire
Dynacor Boosts Quarterly Gold Production to an All-Time Best of 20,027 Ounces in Q1/2013
Thursday, April 18, 2013
Dynacor Boosts Quarterly Gold Production to an All-Time Best of 20,027 Ounces in Q1/201307:00 EDT Thursday, April 18, 2013
MONTREAL, QUEBEC--(Marketwired - April 18, 2013) - Dynacor Gold Mines Inc. (TSX:DNG) (Dynacor or the Company) is pleased to announce that for the first quarter of 2013, gold production from its ore-processing division, achieved a quarterly best of 20,027 ounces; an increase of 7.7% from the previous quarter and a 52.8% increase from the first quarter of 2012. Furthermore, the production growth trend continued as Dynacor generated a record-breaking month in March, producing 7,119 ounces of gold.
Notably, gold production in the month of March marked Dynacor's ninth monthly record in the last twelve months.
Dynacor's first quarter production exceeded expectations and is well within management's 2013 production guidance of 66,000 ounces as the Company produced gold at an annualized rate of 80,000 ounces during the quarter.
Since June 2012, gold grades of the ore delivered to the mill have steadily increased which coincides with the changes enacted, in May 2012, in Peruvian mining laws relative to formalization of the sector. Factors that contributed to the Q1-2013 record production level include: an exceptionally high average ore grade of 1.139 oz/tonne Au (35.42 g/tonne Au); Dynacor's very efficient gold recovery process and the excellent performance of the ore-processing division's well established purchasing network. In fact, during the month of February the average grade processed at the mill was 1.218 oz/tonne Au (37.88 g/tonne Au), well above the expected 2013 average grade of 0.950 oz/tonne Au (29.54 g/t Au).
Dynacor produced 31,476 ounces of silver during the first quarter of 2013 compared to 41,112 ounces in first quarter of 2012.
DYNACOR'S MONTHLY GOLD PRODUCTION (2012-Q1/2013)
|Month||Gold grade (ounce/tonne)||Gold produced (ounces)|
GOLD PRICE VOLATILITY
Dynacor is producing gold through its low-risk ore-processing division. The company is not as leveraged to the price of gold as is a pure producer with fixed production costs. The Company's ore purchase price is discounted to the spot price of gold; therefore, when and if the price of gold drops it has a reduced impact on the Company's profit margins. For the last 3 years, Dynacor had an average gross margin of 17% while the average price of gold ranged from $1,225 to $1,669.
ABOUT DYNACOR GOLD MINES INC.
Dynacor is a gold mining exploration 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 five exploration properties, including the Tumipampa property, along with its 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, knowledge and vast network 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.
Shares outstanding: 36 273 611
FOR FURTHER INFORMATION PLEASE CONTACT:
President and CEO
514-288-3224 ext. 228
Dynacor Gold Mines Inc.
604.492.0099 or Mobile: 604.562.1348