Dynacor's Potential
Dynacor’s ore-purchasing business model was designed to alleviate the high risk increasingly linked to exploration companies. The Company’s share count of 35.8 million is and still remains one of the lowest in the industry.
Kindly see below how each of the company’s value-added divisions may be evaluated:
ORE-PROCESSING DIVISION POTENTIAL:
+ Profitable from 2009-2012 ($0.03, $0.10 and E$0.20+ earnings per share (EPS) respectively): targeting $0.50 (EPS) when processing at 450 tonnes/day: A 10-15 price to earnings ratio (PE) is $5-7.50/share
EXPLORATION DIVISION POTENTIAL:
+ Tumipampa (1): Manto Dorado/veins: converting historical resources to NI 43-101 resources: targeting 1-2 million ounce resource: Company develops underground mine: $200+/oz mineable gold in the ground valuation: $200+ million or $5+/share
+ Tumipampa (2): skarn/porphyry deposit: neighboring skarn/porphyrys range from 350 million tons -1.7 billion tons @ 0.50% copper, 0.04-0.06 grams/tonne gold (3.9 - 18.7 billion pounds of copper and 500 thousand - 2.7 million ounces of gold): Dynacor's surface results show similar copper grades, but much higher gold grades to 13.4 grams/tonne: last two skarn/porphyrys with much lower gold grades (Antares Minerals and Norsemont Mining) sold for approximately $500 million: if Tumipampa via the ensuing drill campaigns indicates a potential similar size ore body with higher gold grades exists, senior miners are likely to circle the deposit: valuation of $500+ million or $13+/share
+ Tumipampa (3): Brecciated disseminated gold deposit: in the pipeline
+ Five additional exploration projects: In the pipeline
Note: Tumipampa project: surrounded by 6 senior miners: over $6 billion in mine development underway: Drilling of skarn/porphyry and underground cross-cut of Manto Dorado commenced in early December, 2012.
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.
All the best,
Dale
For further information, please contact:
Dale Nejmeldeen | Manager, Investor Relations