Dynacor Gold Mines Inc. [DNG-TSX; DNGDF-OTC] says it produced 6,636 ounces of gold during the month of February 2018 at its Veta Dorada processing plant in Peru, surpassing the previous month of production by 19.4% (5,560 ounces in January, 2018),
The latest monthly production is similar to the February, 2017, production of 6,733 ounces, an amount that was attributable to the abnormally high-grade ore processed.
Dynacor Gold Mines is a Montreal, Quebec-based company engaged in exploration as well as production through its government-licensed ore processing operations in Peru. In 2017, Dynacor produced 79,897 ounces of gold, a 9% increase from 73,476 ounces in 2016.
The company is currently using cash flow from gold production to fund exploration at its flagship Tumipampa property located 60 km south of the city of Abancay in the Tumipampa region, about 500 km southeast of Lima. Dynacor holds the titles and permits to 9,756 hectares on this property where the altitude varies between 4,200 and 4,800 metres.
The Tumipampa property is located in a gold-silver vein epithermal corridor which hosts several hydrothermal deposits. It also straddles the Apurimac corridor which hosts porphyry-copper and base metals skarn rich deposits such as Glencore AG’s Tintaya Skarn (200 million tonnes at 1.15% copper).
The main gold mineralization structures or zone at Tumipampa is the Manto Dorado, which extends approximately 600 metres along strike and 600 metres down dip as evidenced by underground mine workings and drilling.
In the southern part of the property, the Disseminated Zone, a fractured area (3.5 km by 2.5 km) of quartzite, is host to hydrothermally altered zones with abundant fractures and fine veinlets infilled with sericite, pyrite, limonite goethite and oxidation. Out of 1,270 rock samples collected at surface, 161 were anomalous in gold. The most significant assay returned 35.68 g/t gold and 288 g/t silver, 0.787% copper and 20% lead.
The company recently said it is planning to drill on the high priority targets following the rainy season.
Meanwhile, the company said Veta Dorada plant opened at capacity of 300 tonnes/day and management is planning to increase the capacity to 360 tonnes/day as soon as possible as it continues to grow its ore inventory. The plant is designed to be readily expandable to 600 tonnes/day by the addition of more processing lines and ball mills. The focus for the rest of the year is on building the ore inventory, the company said.
The February production and processing rate was in line with management’s expectations, the company said in a press release on March 19, 2018. In general, gold production increases steadily throughout the year. The rainy season occurs mainly during the first quarter of each year and affects artisanal ore mining and transport and, consequently, Dynacor’s ore supply
Last year’s extreme weather during the rainy season was declared a national emergency because of the widespread damage to the country’s infrastructure. However, events like this are exceptional, the company said.