Dynacor Gold Mines (
TSX: DNG,
Stock Forum) significantly advanced their production efforts when the company announced today that it had obtained the construction permit for its new gold ore processing facility in Chata, Southern Peru.
According to the
news release, the permit was issued by the Ministry of Energy and Mines (MEM) in Lima allowing the company to pursue the best possible construction company with the necessary experience and track record.
The company expects the Chata plant to have an initial processing capacity of 300 tpd or 102,000 t/y with the ability to expand capabilities to 450 tpd or 153,000 t/y and then 600 tpd or 204,000 t/y by adding processing lines and ball mills.
The facility is to be constructed on a 135-hectare property that is part of a 200-hectare mining concession purchased by the company in March 2011. The aforementioned concession lies in the heart of Peru’s most prolific gold mining regions. Total capital costs for the construction are estimated at US$10.0 million.
The Chata plant will have easy highway access, ample space for tailings ponds, access to Peru’s national grid and will be located in a mining friendly jurisdiction.
Dynacor Gold Mines was in the news recently when
the Montreal, Quebec-based company announced at the end of February that it had discovered four new high-grade gold structures at Tumipampa.
Shares rose 7.73% on the news to $2.09 per share.
Currently there are 36.2m outstanding shares with a market cap of $75.8 million.