Dynacor states that the geophysical results it has received are positive and concur with the surface gold anomalies discovered earlier at the Tumipampa project in Peru. Once the company gets the drilling permit from the Peruvian Ministry of Energy and Mines (MEM), Dynacor will start drilling straightaway.
Geophysical Survey Results
The decision to survey was made in March 2018 and was carried out by Valdor Sudamérica SAC. An Induced Polarization (IP) geophysics survey was outlined to cover the disseminated zone which includes the Oro Baritina grid, the Breccia Sumac, and other mineralized quartzites zones of Tumipampa.
The IP survey area:
- 102.45 km
- 28.35 km on the Oro Baritina grid (located in the new claims south of the Breccia Sumac)
- 74.10 km on the Breccia Sumac grid (disseminated zone)
The geophysical team started surveys on May 15th, 2018, finishing the Breccia Sumac grid on October 5th, 2018, and the Oro Baritina grid on October 26th, 2018.
The IP on the Breccia Sumac Grid defined positive geophysical results related to high chargeability as well as resistivity anomalies.
- Chargeability: Line L500W to line L0E with likely extension to line L400E
- 100-300 m wide with depths of 200-300 m
- A 500-900 m strike length of anomalies
The chargeability anomalies concur with the earlier surface channel sample anomalies returning values of 1.00 g/ton Au to 35.58 g/t Au.
- The first phase of 12 holes:
- Totaling 4410 m
- Priority 1 targets to be 2910 m (eight holes)
- Priority 2 targets to be 1500 m (four holes)
Priority 1 Targets (Disseminated Zone)
Breccia Sumac: The positive geophysical and surface channel outcomes have established six shallow high priority drill targets on the Breccia Sumac. The drill targets are plotted to intersect with the maximum value geophysical readings and surface channel location reporting high anomaly of gold results amassed in the past.
The Breccia Sumac drill targets:
- To drill chargeability anomalies close to the surface
- Down to 300 m on the lines L0, L200W, L300W, L525W, and L400E
Esperanza Fault: One high-priority drill target because of the positive geophysical result linked to the extension of the Esperanza Fault.
- To drill chargeability and resistivity anomalies close to the surface
- Down to 200 m on the line L0E
Diana Fault: One extra high priority drill target is determined in the Diana Fault which may be associated with the Breccia Sumac anomalies.
- To drill chargeability and resistivity anomalies close to surface
- Down to 300 m on the line L400E
Priority 2 Targets
Four extra drill targets totaling 1500 m will test other high geophysical anomalies along the sections L400E, L700E, L800E, and L1100E.
The preparation for the phase two drilling program will start after the reception of the assay results from the first phase.
Peruvian MEM Drill Permit Update
In the first quarter of 2018, the company applied for an exploration permit spanning an extension of the Tumipampa property. Because of last year’s regulation alterations, all exploration projects in the Peruvian mining sector are behind. Thus far, all studies and necessary data have been given to the Peruvian MEM.
Upon receiving the permit, Dynacor will directly start drilling on the Breccia Sumac, disseminated and mineralized quartzites.
Independent reports from large scale miners in the last couple of years indicate interest in these two zones. Supporting this theory is the recent geophysical results which add an extra layer of confidence to our drill targets set before the survey. We are anxious to drill test both the Breccia Sumac and Disseminated Quartzites zones as soon as we receive the permit. We plan to drill 3-4 holes per month and expect to release the first batch of results to the market approximately 50-60 days after the drilling begins.
Alonso Sanchez, Chief Geologist, Dynacor.
Mining Tumipampa’s Underground Manto Dorado Vein System
Dynacor is nearing the conclusion of an agreement with an efficient artisanal mining team from the community of Pachaconas to commence extracting gold mineralized material from the high-grade underground vein system formed at Tumipampa. In December 2017, the Pachaconas community granted Dynacor a right-of-way agreement to reach the disseminated mineralized zone containing the diamond drill rigs.
During these deliberations, a working schedule was fixed by both parties. The artisanal miners will be permitted to extract mineralized material from a 71-meter long raise averaging 21.109 g/t Au immediately above the Manto Dorado.
As part of the working schedule, Dynacor will buy the mineralized material from the artisanal miners which will later be processed at its Veta Dorada plant in Chala, in Peru.
After both parties do a final approval, Dynacor will circulate a news release.
2019 Production Outlook
The production outlook of Dynacor in 2019 reflects steady gold production with an increase to 82-92,000 ounces from 2018’s production of 81,314 ounces. In Q4 2018, the Veta Dorada plant in Peru worked at 94% of its total capacity. Stable production levels and continuous plant enhancements in cost optimization should positively influence cash flows from operations for Dynacor.
As the company reaches its first stage of total capacity (300 TPD), management will not be offering once-a-month production updates in 2019. It will report production updates on a quarterly basis as per the industry standard.