Posts Tagged ‘mining in peru’


Wednesday, May 23rd, 2012



Dynacor Gold Mines Inc.  (TSX:DNG) is pleased to provide a second quarter operations update. In the month of May, Dynacor produced from its custom milling plant a historic best of 4,183 ounces of gold (representing more than 50,000 ounces on an annualized rate).

Furthermore, during Q1-2011 the company, using cash directly generated from operations, optimized the plant’s yield at the current capacity of 180 tpd (tonnes per day). The expansion program, which included installation of an additional cyanidation tank and a 90 tpd ball mill, will facilitate a capacity increase from 180 tpd to just over 200 tpd during the 2nd part of 2011.

For the first five months of 2011 the company produced 17,642 ounces of gold from its custom-milling plant as compared to 9,625 ounces of gold during the comparable period in 2010 (an increase of 83%).

In addition, the company’s silver production is also increasing. As of the 31st of May 2011, Dynacor had produced 33,992 ounces of silver as compared to 14,132 ounces for the same 5-month period in 2010 (an increase of 141%).  Gold and silver production are expected to continue to increase through the balance of 2011 and into 2012 as Dynacor’s mill ramps up to its full capacity of 200 tonnes per day. Website Promotion

The company is well on target to produce approximately 45,000 ounces of gold in 2011-2012.  Jean Martineau, President and Chief Executive Officer of Dynacor, said: “I am very pleased with the performance of our custom milling plant as both our gold and silver output increased during the second quarter 2011. As many analysts predict that the current strong price of silver will continue throughout 2011, we expect that our silver production will have an important impact on Dynacor’s cash flow from operations.”

Joey Trombino, Vice President and Chief Financial Officer of Dynacor, added: “The custom milling component of Dynacor’s business model has an important consequence in that it avoids dilution of its shareholders due to an untimely need for equity financing when the stock price is low. For instance during Q1-2011, Dynacor invested, from its auto-generated cash flow, $0.8 million, towards the ongoing exploration campaign at Tumipampa and the expansion of the custom milling plant.”


Dynacor is a gold exploration and mining company active in Peru through its subsidiaries since 1996. The company’s assets include the Acari, Casaden and Tumipampa exploration properties. Dynacor’s gold mill produces gold by custom milling.


Sourced & published by Henry Sapiecha


Thursday, December 1st, 2011


ASSESSMENT – Peru has a very rich precious metals background. This diverse nation in the Andes, once a victim of Spanish looting, is now the biggest silver producer in the world, the second largest copper and zinc producer and the sixth largest gold producer. The wealth of its mineral deposits stems from  dramatic landscapes consisting of soaring mountains, winding valleys, stark deserts, mysterious jungles and isolated coastlines. More than 7% of global mining exploration occurs on this unforgiving terrain, where historical production collides with modern geological technology. The Peruvian mining industry represents about 60% of the country’s export earnings.  Earnings from mining are expected to grow 6% annually through 2011-13.

But with a landscape as diverse as this, miners have to pick and choose locations carefully.

Ancash & Cajamarca Regions

Two regions which should be on the radar of eager gold and silver investors are the Ancash and Cajamarca in northern Peru. Both Ancash’s and Cajamarcas’ economies are largely made up of gold, silver, copper, zinc & precious metals mining.

Gold and silver production and exploration in these regions are a clear example of the investment and muscle needed to survive in the Peruvian Andes. This high-elevation, mineral rich area, which has been on the list of eager juniors for decades, currently persists mainly on the activity of the world’s two biggest gold miners:

Minera Yanacocha – Newmont Mining

Newmont Mining’s [NMC – TSX] legendary Yanacocha mine is a joint-venture project with Peruvian Company Buenaventura and the International Finance Corporation, which own 43.65% and 5%, respectively. Yanacocha is the largest gold mine in Latin America and is not only considered to be the second largest gold mine in the world, but also one of the most profitable.

The Yanacocha consists of three active open pit mines, with production having exceeded 26 million ounces (US$7 billion) since the mine opened in 1993. Located only 48 kilometres from city of Cajamarca, the mine produced 1.5 million ounces in 2010 and has reported 5 million ounces of gold reserves as of December 2010.

Considering Newmont’s recent stock rocketing in the past six months, buoyed by positive third-quarter results and ongoing production and exploration around the globe, the Company’s stock price may scare away smaller investors. Then again, the recent dip below $70 could also be seen as a gift by many who believe gold is about to go parabolic in the face of worldwide currency destruction.

Pierina – Barrick Gold

Not to be outdone by its competitor, the world’s largest gold producer, Barrick Gold Corp. [ABX – TSX], has two key mines in the regions: Alto Chicama & Pierina. Of the two, the Pierina’s mine life has recently been extended to the end of 2014 due to the rising gold price and increased interest in Peru’s gold possibilities. An open-pit operation, Pierina produced 191,000 ounces of gold at $434 per ounce in 2010 and recorded proven and probable mineral reserves as of December of 791,000 ounces of gold. Considering that Barrick recently reported record net earnings of 45% to CAD $1.37 billion for the 3rd quarter, investors should look for future exploration and increased production in the Ancash region.

Much like Newmont, investors may hesitate on following such a high-priced stock. But judging from Barrick’s recent price volatility, a result of the volatile yet upward-moving gold price, there are plenty of opportunities to catch the stock on the dips.

Yanamina Gold Project – Coronet Metals

For those with shallower pockets and hopes for higher gains, Coronet Metals [CRF – TSX.V] offers an alternative to the nearby majors that may add another producing mine to the Ancash region. A junior gold exploration and development company, Coronet is presently developing its Yanamina Gold project, which Coronet recently purchased from Latin Gold Limited. Yanamina is an advanced-stage project with an initial inferred and indicated resource of approximately 286,000 ounces of gold grading between 1.6 and 2.0 grams/tonne and 1,400,000 ounces of silver grading on average of 8 grams/tonne.

The project represents an ideal opportunity to catch the attention of the two previously mentioned majors, as it is an open pit, heap leach gold operation. Exploration on the area has revealed a low sulphidation epithermal Au-Ag deposit, with indicated ounces mentioned above, and substantial upside potential. Coronet reports good existing infrastructure in the region, along with an proposed mine life estimate of 8+ years.

On top of the development of the Yanamina project, Coronet has also recently announced an agreement to evaluate re-processing up to 950,000 of gold tailings in Peru. The project is located 16 km below the Yanamina project and will give Coronet the opportunity to demonstrate its adherence to corporate social responsibility and best practices in the area. Mr Joel Dumaresq of Coronet says, “ This low-capital project could move Coronet into gold and silver production with the objective of generating sufficient free cash flow to cover the Company’s overhead. The contractors are already approved and completion of due diligence is targeted for Q1, 2012.”

2011 And Beyond

As the Yanamina gold project and the re-processing of gold tailings unfold, expect to hear a growing buzz of expectation from the Ancash region.

As the global gold hunt heats up in the face of financial calamity, well-placed juniors such as Coronet may deliver significant rewards to schrewd punters

Sourced & published by Henry Sapiecha