IRVING, TX, Feb 15, 2012 (MARKETWIRE via COMTEX) — DynaResource, Inc. (“DynaUSA”, or “the Company”), a Resource Investment and Management Company based in Irving, Texas, with a current focus on the San Jose de Gracia Project in Mexico, targeting growth in the defining and production of gold and silver resources, is pleased to announce that it has received the results of a National Instrument 43-101 (“NI 43-101”) compliant resource estimate for the San Jose de Gracia Project (“SJG”) from DynaResource de Mexico, SA de CV. (“DynaMexico”), the 100% owner of SJG. The current resource estimate is comprised of 372 drill holes totaling 75,878 meters.
The NI 43-101 resource estimate was prepared by Mr. Robert Sandefur, PE, a Qualified Person as defined under NI 43-101, and a senior reserve analyst for Chlumsky, Armbrust & Meyer LLC, Lakewood, CO (“CAM”). The resource estimate concentrates on four separate vein systems at SJG: Tres Amigos, San Pablo, La Union, and La Purisima. The resource estimate includes Indicated Resources at: Tres Amigos of 892,534 tonnes with an average grade of 4.46 g/t, totaling 127,921 Oz. Au; and at San Pablo of 1,307,509 tonnes with an average grade of 6.52 g/t, totaling 274,171 Oz. Au. The estimate also includes an Inferred Resource of 3,953,143 tonnes in aggregate for the four vein systems, with an average grade of 5.83 g/t, totaling 740,911 Oz. Au. The resource estimate is reported using a 2.0 g/t cut off, with the effective date of February 6, 2012 (the “CAM SJG Mineral Resource Estimate”).
Mineral Resource and Classification for San Jose de Gracia
Project
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TRES AMIGOS INDICATED
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Au Cut Off (g/t) Tonnes Au g/t Au TOZ Ag g/t Ag TOZ
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1.00 1,128,000 3.85 139,000 9.18 333,000
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2.00 893,000 4.46 128,000 10.34 297,000
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3.00 608,000 5.37 105,000 11.31 221,000
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TRES AMIGOS INFERRED
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1.00 1,937,000 4.91 306,000 9.46 589,000
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2.00 1,453,000 6.05 282,000 11.01 514,000
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3.00 950,000 7.93 242,000 11.47 350,000
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SAN PABLO INDICATED
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Au Cut Off (g/t) Tonnes Au g/t Au TOZ Ag g/t Ag TOZ
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1.00 1,482,000 5.94 283,000 11.92 568,000
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2.00 1,308,000 6.52 274,000 12.72 535,000
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3.00 1,091,000 7.32 257,000 13.69 480,000
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SAN PABLO INFERRED
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1.00 756,000 4.65 113,000 9.25 225,000
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2.00 532,000 6.02 103,000 11.33 194,000
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3.00 426,000 6.92 95,000 11.89 163,000
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LA UNION INFERRED
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Au Cut Off (g/t) Tonnes Au g/t Au TOZ Ag g/t Ag TOZ
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1.00 1,221,000 4.72 185,000 12.81 503,000
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2.00 849,000 6.11 167,000 13.71 374,000
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3.00 580,000 7.79 145,000 16.51 308,000
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LA PURISIMA INFERRED
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Au Cut Off (g/t) Tonnes Au g/t Au TOZ Ag g/t Ag TOZ
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1.00 1,767,000 3.83 217,000 4.64 264,000
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2.00 1,119,000 5.25 189,000 5.63 203,000
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3.00 801,000 6.34 163,000 5.85 151,000
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SAN JOSE DE GRACIA TOTAL INDICATED
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Au Cut Off (g/t) Tonnes Au g/t Au TOZ Ag g/t Ag TOZ
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1.00 2,610,000 5.03 422,000 10.73 901,000
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2.00 2,200,000 5.69 402,000 11.75 831,000
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3.00 1,699,000 6.62 362,000 12.84 701,000
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SAN JOSE DE GRACIA TOTAL INFERRED
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1.00 5,681,000 4.50 822,000 8.66 1,581,000
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2.00 3,953,000 5.83 741,000 10.11 1,285,000
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3.00 2,757,000 7.28 646,000 10.97 972,000
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TRES AMIGOS INDICATED
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Cu% CuKg Pb% PbKg Zn% ZnKg
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0.19 2,137,000 0.05 570,000 0.33 3,774,000
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0.21 1,875,000 0.06 499,000 0.37 3,276,000
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0.22 1,338,000 0.06 374,000 0.39 2,349,000
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TRES AMIGOS INFERRED
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0.21 4,028,000 0.05 981,000 0.34 6,600,000
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0.23 3,390,000 0.06 802,000 0.38 5,460,000
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0.20 1,935,000 0.07 620,000 0.43 4,107,000
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SAN PABLO INDICATED
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Cu% CuKg Pb% PbKg Zn% ZnKg
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0.26 3,839,000 0.01 158,000 0.03 500,000
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0.28 3,607,000 0.01 147,000 0.04 458,000
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0.30 3,241,000 0.01 132,000 0.04 405,000
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SAN PABLO INFERRED
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0.17 1,273,000 0.01 74,000 0.03 227,000
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0.20 1,074,000 0.01 51,000 0.03 161,000
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0.22 935,000 0.01 40,000 0.03 131,000
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LA UNION INFERRED
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Cu% CuKg Pb% PbKg Zn% ZnKg
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0.15 1,856,000 0.02 250,000 0.04 532,000
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0.19 1,579,000 0.03 221,000 0.05 448,000
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0.23 1,340,000 0.03 196,000 0.07 403,000
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LA PURISIMA INFERRED
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Cu% CuKg Pb% PbKg Zn% ZnKg
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0.08 1,454,000 0.02 293,000 0.06 1,097,000
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0.10 1,150,000 0.02 209,000 0.06 707,000
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0.11 916,000 0.02 164,000 0.07 585,000
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SAN JOSE DE GRACIA TOTAL INDICATED
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Cu% CuKg Pb% PbKg Zn% ZnKg
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0.23 5,976,000 0.03 728,000 0.16 4,273,000
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0.25 5,482,000 0.03 646,000 0.17 3,733,000
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0.27 4,579,000 0.03 506,000 0.16 2,754,000
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SAN JOSE DE GRACIA TOTAL INFERRED
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0.15 8,611,000 0.03 1,599,000 0.15 8,456,000
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0.18 7,193,000 0.03 1,283,000 0.17 6,776,000
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0.19 5,126,000 0.04 1,021,000 0.19 5,227,000
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(Due to rounding the numbers in the above may not check exactly. Tonnes and contained metal are reported to nearest tonne, troy ounce or kilogram for comparative purposes only and do not imply this degree of precision or accuracy. This is an estimate of in situ resources only and there is no assurance that any part of these resources can be converted to reserves.)
Data used in the CAM SJG Mineral Resource Estimate was provided and reviewed by Mr. Ramon Luna of Servicios y Proyectos Mineros, a Qualified Person as defined under NI 43-101. Resources were estimated by CAM, Mr. Sandefur QP, within wireframes constructed by technical personnel of Minop SA de CV (“Minop”), a subsidiary of Goldgroup Mining Inc. (“Goldgroup”). Minop was contracted by Mineras de DynaResource SA de CV. (“Mineras”), a 100% subsidiary of DynaUSA and the operating entity at SJG under agreement with DynaMexico. DynaUSA holds 50% of the outstanding shares of DynaMexico and Goldgroup holds 50% of the outstanding shares of DynaMexico.
An NI 43-101 compliant technical report will be filed on SEDAR ( www.sedar.com ) within 45 days of this news release.
Parameters Used to Estimate the Mineral Resource
The data base for the San Jose de Gracia Project consists of 372 drill holes of which 361 were diamond drill holes and the remaining 11, drilled in 1992, were reverse circulation holes, with a total drilling of 75,878 meters. The CAM SJG Mineral Resource Estimate concentrates on four mineralized vein systems at SJG: Tres Amigos, San Pablo, La Union, and La Purisima. Of the 372 drill holes, 368 were drilled to test these four vein systems and the remaining four holes tested the Argillic Zone. Technical personnel of Minop built three dimensional solids to constrain estimation to the interpreted veins in each swarm. The 172 holes most recently drilled, 2009-2011, were allocated as follows: Tres Amigos (64 holes), San Pablo (49 holes), La Union (24 holes), La Purisima (32 holes) and the Argillic Zone (3 holes).
Servicios y Proyectos Mineros performed a database review and considers that a reasonable level of verification has been completed, and that no material issues have been left unidentified from the drilling programs undertaken.
A total of 5,540 pieces of core were measured for specific gravity using the weight in air vs. weight in water method. This represents an additional 3,897 measurements taken in the 2009-11 drill seasons with density measurements taken from all mineral zones. Dried samples were coated with paraffin wax before being measured. The results tabulated have been sorted by lithology and mineralized veins. The average specific gravity of 5,051 wall rock samples is 2.59 while the average specific gravity for 489 samples of vein material is 2.68. CAM and Servicios y Proyectos Mineros have reviewed the procedures and results, and opine that the results are suitable for use in mineral resource estimation.
Explanation of Resource Estimation
Resource estimation was done in MineSight and MicroModel computer systems with only those composites that were inside the wireframe used in the estimate. Estimation was done using kriging with the omni-directional variogram derived from all the data in each area for gold using the relative variogram derived from the log variogram. High grades were restricted by capping the assays at a breakpoint based on the cumulative frequency curves. Estimation was done using search radii of 100 x 100 x 50 m oriented subparallel to the general strike and dip of the vein system in each area. A sector search, corresponding to the faces of the search box with a maximum of two points per sector was used in estimation. A density of 2.68 based on within vein density samples was used in the resource estimate. Within each of the four areas there are approximately 20 to 40 veins in the vein swarm. Resources were estimated by kriging using data from all veins in the swarm. In general, gold accounts for at least 80% of the value of contained metal at the project, so the variograms for gold were used in estimation of the four other metals. Resources at Tres Amigos and San Pablo were classified as Indicated as follows:
1) they were within a vein within the swarm which contained at least 7 drill holes; 2) they are within 25 m of the nearest sample point; and, 3) they were estimated by at least three drill holes.
All other resources were classified as Inferred. Because there are no precise quantitative definitions of measured, indicated and inferred, resource classification is subjective and depends on the experience and judgment of the QP doing the resource. CAM, Mr. Sandefur QP, allowed indicated material at Tres Amigos and San Pablo because of (1) the similarity of the variograms, and (2) the fact that there was recent production by DynaMexico from San Pablo of some 42,000 tonnes at a feed grade of approximately 15 g/t. Three of the individual veins at La Purisima satisfied criterion (1) above but Mr. Sandefur elected not to include this material in indicated because of the shorter first range at La Purisima. This mineral resource estimate does not include any ore loss or dilution outside wireframes, and as currently defined, is probably most appropriate for a highly selective, small equipment underground operation.
The veins at San Jose de Gracia have been historically mined for many years and historic mined volumes are not available. The one exception is the approximate 42,000 tonnes mined by DynaMexico during its pilot production activities in 2003-2006. The resource table is not adjusted for any historic mining. To validate that historic mining had not significantly reduced the resource, CAM reviewed the database for all assays greater than 1 g per ton gold that were next to missing values at the bottom of drill holes. Only four assays satisfying this criterion were found, and on the basis of this review, CAM does not believe that significant mining has occurred within the volumes defined by the wireframes.
Data Verification
Mr. Luna visited the San Jose de Gracia Project in November 2010, and conducted site inspections in November 2011 and January 2012. Mr. Sandefur conducted a site inspection of the SJG Project in January 2012. While at the Property in November 2011, Mr. Luna inspected the areas of Tres Amigos, La Prieta, Gossan Cap, San Pablo, La Union, and La Purisima, and historic mining sites. In January 2012, Mr. Sandefur and Mr. Luna inspected the areas of Tres Amigos, San Pablo, La Union, and La Purisima. Pictures of the areas were taken. Many of the drill pads for the drilling programs of 2007 to 2011 were clearly located and identified. Mr. Luna also inspected San Jose de Gracia’s core logging and storage facilities, the geology offices, the meteorological station, the plant nursery, and the mill. Mr. Sandefur also inspected San Jose de Gracia’s core logging and storage facilities, the plant nursery and the geology offices.
A total of 10 rock samples were collected by Mr. Luna in November 2011, including 1 rock sample of quartered core from drill hole number SJG DDH 10-179 at Tres Amigos (from 176.17 to 177.5 meters), 2 rock samples of quartered core from drill hole SJG DDH 08-051 at San Pablo (from 183.6 to 184.6 meters) and drill hole number SJG DDH 10-203 at San Pablo (from 36.05 to 36.75 meters), plus 2 ore dump samples from underground workings at the same two drill holes, 0 samples from quartered core from the drill holes from La Prieta, 3 rock samples from quartered core from drill hole number SJG DDH 10-223 at La Union (from 62.25 to 63.90 meters, from 63.9 to 65.40 meters, and from 65.40 to 66.15 meters) and 0 rock samples from quartered core from the drill holes at La Purisima. All of these rock samples were hand delivered to ALS Chemex Labs of Hermosillo, Mexico for analysis. Mr. Luna suggests that the 10 check samples described support the fact that gold mineralization can be verified from the 5 “point” locations, in five areas namely, Tres Amigos, La Prieta, San Pablo, La Union and La Purisima.
K.D. Diepholz, Chairman and CEO of DynaResource, Inc., and President of DynaMexico stated:
“The CAM SJG Mineral Resource Estimate was commissioned in the best interests of DynaMexico in order to correct a previous resource estimate for SJG which was released prematurely by Goldgroup Mining Inc. on November 23, 2011, and released without approval from DynaMexico. Goldgroup is only a shareholder of DynaMexico and as such has no authority to independently commission or release a resource estimate for SJG. The major differences between the premature, non-approved resource estimate released by Goldgroup and the CAM SJG Mineral Resource Estimate as reported here in this news release are shown in the table below:
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Resources Categories
(Indicated & Inferred) DynaMexico (“CAM SJG”) Goldgroup
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at 2 g/t Au cut off Au Ounces Avg. Au g/t Au Ounces Avg. Au g/t
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San Pablo Indicated 274,000 6.52 0 0.00
San Pablo Inferred 103,000 6.02 381,000 6.49
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SJG Total Indicated 402,000 5.69 147,000 5.00
SJG Total Inferred 741,000 5.83 963,000 5.16
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The CAM SJG Mineral Resource Estimate is the current and only resource estimate for SJG which has been approved by DynaMexico, the 100 % owner of San Jose de Gracia. I am pleased with the results of the CAM SJG Mineral Resource Estimate as it confirms the first major milestone for defined resources at SJG, and it confirms the confidence in the resources defined by recent drilling at Tres Amigos and San Pablo.
I look forward to receiving and releasing the NI 43-101 technical report for SJG, Mr. Sandefur and Mr. Luna – QP’s, and subsequently I look forward to DynaMexico’s commissioning and completing of a Preliminary Economic Assessment (“PEA”) for SJG. Further, I look forward with excitement to the continuing development of the SJG project in the best interests of DynaMexico.”
Qualified Persons
Each of Mr. Robert Sandefur and Mr. Ramon Luna is a “qualified person” as that term is defined in National Instrument 43-101 and is “independent” as that term is also defined in National Instrument 43-101. Each of them has reviewed and approved the scientific and technical disclosure set out in this news release.
About San Jose de Gracia (“SJG”)
The San Jose de Gracia District, covering 69,126 hectares, is 100% owned by DynaResource de Mexico (“DynaMexico”). DynaResource, Inc. (“DynaUSA”) currently holds 50% of the outstanding shares of DynaMexico and Goldgroup holds the remaining 50%.
In excess of one million ounces of gold were reportedly produced from the SJG District in the early 1900’s, originating from veins grading from 30.0 g/t Au to 60.0 g/t Au. In June 2010, the SJG Project was recognized as the most significant Gold Project in the State of Sinaloa for the year 2010.
About DynaUSA / DynaMexico / Mineras de DynaResource – Operating Entity
DynaUSA (the “Company”) is a Resource Investment and Management Company based in Irving, Texas, with a current focus on the SJG Project in Mexico, targeting growth in the defining and production of gold and silver resources. The Company formed DynaMexico in March 2000 specifically for the purpose of acquiring and consolidating the SJG District; and it completed the consolidation of the entire SJG District (approx. 15 sq. km. at that time) in 2003. During the period 2003-2006, DynaMexico conducted Pilot Production operations at the San Pablo area of SJG, reporting production results of: 18,250 Oz. Gold produced; 42,000 tons mill feed; average feed grades of approximately 15-20 g/t Gold; and, average production costs of < $175. / Oz. In September 2006, the Company entered into an Earn In / Option Agreement with Goldgroup, which provided that Goldgroup contribute $18 M. USD in funding to DynaMexico for exploration/development expenditures at SJG, in exchange for 50% of the outstanding shares of DynaMexico. Under agreement with DynaMexico, Mineras de DynaResource SA de CV. (“Mineras”) has been named the exclusive operating entity at San Jose de Gracia. DynaUSA owns 100% of Mineras. The Chairman / CEO of DynaUSA also serves as the President of DynaMexico, and as the President of Mineras.
Projecting future production of resources from SJG by DynaMexico, DynaUSA would be the beneficiary as a 50% shareholder of DynaMexico.
For further information on DynaUSA and DynaMexico, please visit www.dynaresource.com or contact:
IMPORTANT CAUTIONARY NOTE REGARDING CANADIAN DISCLOSURE STANDARDS
The Company is or about to be an “OTC Reporting Issuer” as that term is defined in BC Instrument 51-509, Issuers Quoted in the U.S. Over-the-Counter Markets, promulgated by the British Columbia Securities Commission. Accordingly, certain disclosure in this news release or other disclosure provided by the Company has been prepared in accordance with the requirements of securities laws in effect in Canada, which differ from the requirements of United States securities laws. In Canada, an issuer is required to provide technical information with respect to mineralization, including reserves and resources, if any, on its mineral exploration properties in accordance with Canadian requirements, which differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”) applicable to registration statements and reports filed by United States companies pursuant to the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended. As such, information contained in this news release or other disclosure provided by the Company concerning descriptions of mineralization under Canadian standards may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the SEC and not subject to Canadian securities legislation. This news release or other disclosure provided by the Company may use the terms “measured mineral resources,” “indicated mineral resources” and “inferred mineral resources.” While these terms are recognized and required by Canadian regulations (under National Instrument 43-101, Standards of Disclosure for Mineral Projects), the SEC does not recognize them. United States investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted to reserves. In addition, “inferred mineral resources” have a great amount of uncertainty as to their existence and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities legislation, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, although they may form, in certain circumstances, the basis of a “preliminary economic assessment” as that term is defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects. U.S. investors are cautioned not to assume that part or all of an inferred mineral resource exists, or is economically or legally mineable.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This News release contains forward-looking statements within the meaning of Section 27 A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Certain information contained in this news release, including any information relating to future financial or operating performance may be deemed “forward-looking.” All statements in this news release, other than statements of historical fact, that address events or developments that DynaResource expects to occur, are “forward-looking information.” These statements relate to future events or future performance and reflect the Company’s expectations regarding the future growth, results of operations, business prospects and opportunities of DynaResource. These forward-looking statements reflect the Company’s current internal projections, expectations or beliefs and are based on information currently available to DynaResource. In some cases forward-looking information can be identified by terminology such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “projects,” “potential,” “scheduled,” “forecast,” “budget” or the negative of those terms or other comparable terminology. Certain assumptions have been made regarding the Company’s plans at the San Jose de Gracia property. Many of these assumptions are based on factors and events that are not within the control of DynaResource and there is no assurance they will prove to be correct. Such factors include, without limitation: capital requirements, fluctuations in the international currency markets and in the rates of exchange of the currencies of the United States and Mexico; price volatility in the spot and forward markets for commodities; discrepancies between actual and estimated production, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in national and local governments in any country which DynaResource currently or may in the future carry on business; taxation; controls; regulations and political or economic developments in the countries in which DynaResource does or may carry on business; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits, diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or reclamation activities; changes in project parameters as plans continue to be refined; accidents; labor disputes; defective title to mineral claims or property or contests over claims to mineral properties. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance, to cover these risks) as well as those risks referenced in the Annual Report for DynaResource available at www.sec.gov . Forward-looking information is not a guarantee of future performance and actual results and future events could differ materially from those discussed in the forward-looking information. All of the forward-looking information contained in this news release is qualified by these cautionary statements. Although DynaResource believes that the forward-looking information contained in this news release is based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such statements. Accordingly, readers are cautioned against placing undue reliance on forward-looking information. DynaResource expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise.
Brad J. Saulter
V.P.
Investor Relations
T: 972-868-9066K.D. Diepholz
CEO
T: 972-868-9066
