Dynacor Gold Mines Inc. (TSX:DNG) (US: DNGDF) www.dynacorgold.com MANAGEMENT:
INVESTOR Fact Sheet: AUGUST, 2013
Common Shares Outstanding: 36.3M
Market Capitalization : $57.7M
52-week High/Low: $1.64/$0.58
A Non-Dilutive Gold Company
Dynacor is an industrialized-type gold company with a low risk business model.
GOLD PRODUCTION: Dynacor’s gold
ore-processing division, located in Peru,
generates steady cash flow and profits while
reducing risk. HOW?
• Cash flow pays for exploration and all
• Avoids shareholder dilution;
• Net earnings of USD $7.7 M
($0.22 per share) in 2012.
EXPLORATION : Auto Financed
Dynacor has a $2.8 M drilling and cross-cut
campaign underway on its flagship copper
and gold exploration property, Tumipampa,
surrounded by senior mining companies
developing large scale skarn/porphyry
copper/gold mines. ______________________________________________________________________________________________________________________________________ Why Dynacor Gold Mines?
A gold mining company you can invest in
Dynacor employs a contrarian methodology to increasing shareholder value when compared to its peers in the junior resource sector. It is a non-dilutive company which has chosen to fuel its growth organically.
The Company offers its shareholders the advantage of supporting its stock price through the age old practice of valuing a company via the PE (price to earnings) multiple. Thousands of juniors that trade on the TSX Venture and TSX cannot provide this luxury to its shareholders.
Dynacor’s ore-purchasing business model was designed to alleviate the high risk increasingly linked to exploration companies. The Company’s share count of 36.1 million is and still remains one of the lowest in the industry.
The value-added divisions may be evaluated as per the following:
ORE-PROCESSING DIVISION POTENTIAL:
+ Profitable from 2009-2012 ($0.03, $0.10 and $0.16 EPS in the first nine months of 2012 respectively): targeting 100,000 ounces when processing at 450 tonnes/day:
EXPLORATION DIVISION POTENTIAL:
+ Tumipampa (1): Manto Dorado/veins: converting historical resources to NI 43-101 resources: targeting over 1 million ounce gold resource.
+ Tumipampa (2): skarn/porphyry deposit: neighboring skarn/porphyrys range from 350 million tons -1.7 billion tons @ 0.50% copper, 0.04-0.06 grams/tonne gold (3.9 - 18.7 billion pounds of copper and 500 thousand - 2.7 million ounces of gold): Dynacor's surface results show similar copper grades, but much higher gold grades to 13.4 grams/tonne: last two skarn/porphyrys with much lower gold grades (Antares Minerals and Norsemont Mining) sold for approximately $500 million:
+ Tumipampa (3): Brecciated disseminated gold deposit: in the pipeline
+ Five additional exploration projects: In the pipeline
Note: Tumipampa project: surrounded by 6 senior miners: over $6 billion in mine development underway: Drilling of skarn/porphyry and underground cross-cut of Manto Dorado commenced in early December, 2012. - See more at: http://dynacorgold.com/en/why-investing-investor-dynacor.php#sthash.VTDS5SAZ.dpuf ________________________________________________________________________________________________________________________________________
Dynacor Gold Mines Inc. (TSX:DNG) is capitalizing on a two-fold revenue strategy.
First, it is a non-dilutive junior gold company operating in Peru through its established gold and silver ore-processing business.
Dynacor poured its first gold bar at its ore-processing plant in 1998 and has cultivated the relationships and trust of the small
scale mining community over that time. Starting at 3,000 ounces/year, it has since grown to over 61,000 ounces in 2012, a
Secondly, it is our objective to set course to gold production through exploration and development of the Company’s premier
property Tumipampa. The Tumipampa property is the flagship project consisting of three types of gold mineralization. In
July, 2013 Dynacor discovered new bonanza grades of 36.5 g/t Au over 4.9 meters. Tumipampa is currently surrounded by 6
senior mining companies .
GOLD PROCESSING - PROJET ACARI
Dynacor Gold Mines' 230 tpd gold ore processing facility is located in southern Peru. Dynacor buys ore from mining companies from all over Peru which are approved by the Government. Dynacor processes the ore and then sells the gold and silver on the world market. The gold processing low risk business model generates the cash flow necessary for the exploration of its mining properties and pays all the company's administrative expenses. Thus, it avoids diluting its shareholders by repeated financings that characterize gold exploration companies.
EXPLORATION - ADVANCE PROJECT TUMIPAMPA
Tumipampa property is located in the heart of a mining region of Peru and is surrounded by senior miners who are developing large scale skarn/ porphyry copper/gold mines. In early December 2012, Dynacor commenced an exploration campaign consisting of diamond drilling its skarn deposit and excavating a 300 meter cross-cut into Manto Dorado gold/silver vein structure. Tumipampa is a multi-element rich property hosting three types of mineralization: a copper gold skarn more than 4km long, more than fifteen gold / silver veins with potential for near term production and a disseminated gold mineralisation.
EXPLORATION - OTHER PROJECTS
Dynacor Gold Mines has a strategic reserve of 4100 hectares of greenfields exploration projects. One project, Casaden is located in northern Peru and is a gold play located very close (17 km) to the south of the Yanacocha gold mine which is the largest gold mine in South America. The four others are located in southern Peru and include one silver project and three gold / copper. None of these exploration properties has been explored to date.
JEAN MARTINEAU, PRESIDENT AND CEO
• 20 YEARS EXPERIENCE IN THE RESOURCE INDUSTRY IN CANADA AND
• FORMER DIRECTOR OF WESDOME GOLD MINES 1999 – 2007
LEONARD TEOLI, VICE PRESIDENT AND CFO
• 20 YEARS EXPERIENCE IN ACCOUNTING AND FINANCE EXECUTIVE
• FORMER CFO OF DIA BRAS EXPLORATION 2003-2008
• STARTED CAREER WITH PRICE WATHERHOUSE 1987 – 1996
• MEMBER OF THE CANADIAN INSTITUTE OF CHARTERED ACCOUNTANTS
JORGE LUIS CARDENAS, GENERAL MANAGER ORE-PROCESSING
• MINING ENGINEER
• MORE THAN 10 YEARS EXPERIENCE IN MINING (10 YEARS WITH
ALONSO SANCHEZ, CHIEF GEOLOGIST
• 15 YEARS EXPERIENCE AS A MINE AND EXPLORATION GEOLOGIST
(EXPERT OF PERUVIAN GEOLOGY)
• FORMER GEOLOGIST OF PUBLICLY LISTED COMPANY BUENAVENTURA
S.A.A FROM 1995-2006
• EXPERT IN EPITHERMAL GOLD, SILVER, TIN, TUNGSTEN, POLYMETALLIC
DEPOSITS AND SKARNS IN PERU
625, boul. René-Lévesque Ouest