Construction Underway at Dynacor’s New Chala Ore Processing Facility in Southern Peru

Dynacor Gold Mines Inc. is pleased to report that construction of its new ore processing facility (102,000 t/y) located in Chala in Southern Peru is now underway. Furthermore, the Board of Directors recently approved a revised total budget of 12.8 million US dollars of which 2.4 million US has already been invested.

There are at present six (6) different contractors working on site. Dynacor has contracted a specialized engineering firm (PREVCONSULT) that will coordinate and supervise the entire construction process. The detailed engineering plans as well as the earth moving program have been approved and the heavy duty machinery began working on the site on the 6th of June.

The specialized engineering firm will report directly to the general manager in Lima. The Company has also implemented a special committee headed by the CFO that monitors the construction budget and progress of the new ore processing plant.

Soon after receiving the construction permit, in March 2015, Dynacor signed a series of contracts to initiate/complete several additional infrastructure projects that are needed to ensure a smooth-running and efficient ore processing plant. They include:

  1. An office building to house Dynacor's administrative services and ore purchasing department.
  2. A building housing the kitchen and cafeteria
  3. An equipment warehouse and secure storage areas.
  4. Additional water wells, pumps and storage tanks, and
  5. An electrical transformer station and power distribution system.

All of the above additional projects are close to being completed.

The new Veta Dorada (Chala) plant will have an initial ore processing capacity of 300 tpd (102,000 t/y) and has been designed to be readily expanded to 600-tpd (204,000 t/y). The new facility is being built on a 135-hectare site that is part of a 200-hectare mining concession which was purchased by Dynacor in March 2011. This concession is located in the Department of Arequipa, District of Chala, in the heart of one of the most productive gold mining regions of Peru.

Jean Martineau recently stated regarding the new Veta Dorada plant "I am particularly satisfied to have finally been able to move forward on this ambitious project that is a very significant milestone for Dynacor. When the Veta Dorada plant is commissioned and in commercial operation the Company will be the largest and most efficient gold ore processor in Peru. I would like to specially thank the Board of Directors for their constant support and confidence during the last few years as we patiently guided this project through the rigorous administrative and permitting process. Finally, I would also like to underline the support that our long time shareholders have also expressed to me on various occasions as they patiently waited for this project to be approved by the Peruvian authorities."



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