DYNR) (“DynaUSA”, and “the Company”) is pleased to announce
that Mineras de DynaResource S.A. de C.V. (“MinerasDyna”), the 100%
owned subsidiary of DynaUSA and the Exclusive Operator of the San Jose de
Gracia Property in northern Sinaloa, México (“SJG”), is reporting the
delivery for sale of approximately 236 Oz. gold and 90 Oz. silver (exact
weights in gold and silver Oz. to be determined at final settlement).
The results were produced from mineralized material obtained during
cleaning and rehabilitation mining activity at the San Pablo mine. The
mineralized material was processed through the pilot mill circuit at SJG which
was also recently refurbished. MinerasDyna further reports that contract mining
work has provided approximately 3,000 tons of newly mined mineralized material,
which is stockpiled and available for processing through the pilot mill
facility. Internal assays recorded for the 3,000 tons report an average grade
of approx. 12 g/t Au.
MinerasDyna also reports continuing test operations of the pilot mill
facility at SJG. The capacity of the pilot mill facility is currently estimated
at 6 tons/hour, or approximately 150 Tons per 24 hour day.
MinerasDyna plans to continue its current operations at SJG, consisting
of contract underground mining at San Pablo; and delivery of mined mineralized
material to the SJG Pilot Mill facility for subsequent processing and
metallurgical testing. The Pilot Mill facility consists of a basic
gravity-flotation circuit which has been refurbished and improved from the
Pilot Mill facility operated at SJG during the 2003-2006 Period.(See
“MinerasDyna; Mine Plan and Mill Operations”, below).
Mr. K.D. Diepholz, Chairman-CEO of DynaUSA, and President of
MinerasDyna said: “I would like to express my thanks to the operating
managers of MinerasDyna, whose focused, committed work have allowed MinerasDyna
to achieve this recovery of gold from test mill operations during the
rehabilitation work phase. And, I would also like to recognize Dr. Jose Vargas
Lugo, President of México Operations for his continued full energy support to
MinerasDyna and DynaUSA. I would also like to recognize Ing. Jose Vizcarra, the
on-site mining engineer at SJG, and Mr. Gustavo Ruiz, the Pilot Mill facility
manager, for their commitment and leadership. I’m excited to confirm this
dedicated team of professionals working in coordination at SJG, and I look
forward to announcing further results of the underground mining and pilot milling
operations at SJG.”
MinerasDyna will continue to manage activities at SJG under the terms
of the Exploitation Amendment Agreement (“EAA”) with DynaResource de
México (“DynaMéxico”), the 100% owner of the SJG Project. DynaUSA
currently owns 80% of DynaMéxico and DynaUSA owns 100% of MinerasDyna.
MinerasDyna – Mine Plan and Mill Operations (Pilot Operations)
MinerasDyna is conducting
operations at SJG according to internally developed mine plans and through the
internally designed SJG Pilot Mill facility which was previously operated
during the 2003-2006 period. There is no preliminary economic assessment report
completed for SJG so the precise cutoff grade for underground mining has not
yet been determined. The operations are being funded internally by MinerasDyna
and DynaUSA. The mine plan was developed from the block model of resources as
defined in the DynaMéxico NI 43-101 Mineral Resource Estimate (“See
Current NI 43-101 Mineral Resource Estimate for SJG”, below); and from the
analysis of underground mining works conducted in 2003-2006. The operations at
SJG are managed by Dr. Jose Vargas Lugo, President of México Operations for
Mineras and DynaUSA.
MinerasDyna – Exclusive Operating Entity at San Jose de Gracia (DynaUSA
Owns 100%)
Under the provisions of Operating Agreements between Mineras de
DynaResource S.A de C. V. (“MinerasDyna”) and DynaMéxico, including
the Exploitation Amendment Agreement dated May 15, 2013 (“EAA”);
MinerasDyna is named the exclusive operating entity at the SJG Project. Under
the provisions of the EAA, MinerasDyna is granted the rights to finance,
operate, maintain, explore and exploit the SJG Property. (See DynaUSA news
release dated June 21, 2013.) DynaUSA owns 100% of MinerasDyna.
