Dynacor Gold Mines Inc. (TSX:DNG) (Dynacor or the Company) is pleased to announce an operations update from its ore-processing division in Peru. During the month of October, the Company recorded its best month ever, producing 6,169 ounces of gold from purchased ore with an average gold grade of 1.004 oz/tonne. In addition, 14,775 ounces of silver were produced generating total sales of USD $10.6 million for the month.
In the first ten months of 2012, Dynacor has generated gold and silver production of 48,839 and 129,606 ounces, respectively. This result is due in large part to the increase in gold grades available from the influx of small scale miners and the ore-processing plant operating at its maximum capacity. The Company now expects to produce more than 58,000 ounces of gold which is 18% above its published 2012 guidance.
We have been operating our ore-processing business since the late 1990s and are organically growing into one of the foremost and trusted ore-processing operations in Peru. Cash flow and liquidity levels are as robust as the company has seen throughout its history.
The company is planning to build a new 300 tpd ore-processing facility in 2013.We expect that our financial results will enable us to finance the construction of our new plant, our exploration campaign and continue to provide strong shareholder value in the coming quarters."