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Dynasty Provides First 100 Days Corporate Update
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 9, 2017) - Dynasty Metals & Mining Inc. ("Dynasty" or the "Company") (TSX:DMM)(OTCQX:DMMIF) is pleased to provide an update on its first 100 days of operations since the change of management disclosed in its press release issued on September 14, 2016.
Highlights of corporate update
Dynasty Goldfields' road access construction to the first mining area was completed, and mining activities commenced by Green Oil, the Company's contract miners, during the end of December 2016.
Zaruma Project's mining activities recommenced on a small scale, with high grade pillar materials.
Payment of outstanding concession fees has brought all of the key concessions into good standing.
Private placement of US$1.0 million convertible debenture announced for additional working capital.
Dynasty Goldfields' Project
Obtained access agreements and land operating agreements with local communities and landowners.
Road access construction to the first mining areas was completed in late December 2016.
Mining activities commenced by Green Oil, the Company's contract miner, during the end of December 2016.
Open cut mining operation and hauling the ore to the Company's treatment plant at Portovelo conducted through contract mining, with geological and mining grade control being performed by the Company's personnel.
Ore is being mined from a series of shallow open cuts on many veins, from 3 to 10 metres wide indicated from surface trenching and many short drill holes, with an average expected grade of between 3.0 and 4.0 grams gold per ton based on current testing results.
The target production from this location is 500 tons per day ("tpd"), which is expected to be achieved in Q1 2017.
Zaruma Project
Mining recommenced on a small scale, with high grade pillar material, at the Company's underground mine in Zaruma, with a view to cleaning up the mine and opening up blocks of ore for consistent production using low cost selective mining methods. It is expected that the mine will achieve production of a minimum of 100 tpd in Q1 2017.
Pumping level is being maintained but not lowered until the detailed mine plan is completed. Negotiations are underway to share the cost of dewatering lower levels of the district with other regional mine owners.
Employee numbers have been reduced to increase efficiencies. Redundancy agreements have been reached whereby termination benefits will be paid out over time to conserve cash flow.
Machinery use has been reduced to achieve lower cost mining methods. All lower ramp development has ceased and access development minimized while the mine re-establishes cash flow from stoping.
The Company has implemented a policy of regularizing operations of informal miners within its concessions. This is in line with the government policy of maintaining environmental and safety standards for informal miners. To date, at least 20 such agreements have been ratified. This has assisted the Company with good community relations.
Production forecast
The treatment plant at Portovelo has been overhauled, and the secondary crusher rebuilt, one 1,000 tpd ball mill was relined.
The treatment plant recommenced operations on 3,000 tons of ore from the Zaruma mine, while ore from the Dynasty Goldfields Project is being stockpiled at the plant.
In Q1 and Q2 2017, it is expected that the plant will build up production from 500 tpd to between 800 and 1,000 tpd, depending on grind size for mineral liberation.
During the early stage of production, Dynasty Goldfields Project will be the principal source of feed, with ore from the Zaruma mine stockpiled and treated when sufficient ore is available for reasonable mill runs.
Exploration
The Company has large concessions over the Dynasty Goldfields Project, which have considerable potential for higher grade underground mining from several veins that are easily accessible. Exploration by small scale development adits and drilling will better define areas to mine. The intention is to increase the grade going to the Portovelo Plant.
The Copper Duke Goldfields, which is closer by road to the Zaruma plant than the Dynasty Goldfields, has a vein swarm indicated from surface sampling. This needs to be drill tested. The Company has its own new diamond drill on site to perform this work. The intention is to increase and maximize higher grade feed for the Zaruma plant.
The Dynasty Goldfields has several wide intersections of porphyry mineralization with promising indications of gold. As soon as cash flow permits, the Company intends to do further exploration work in this area.
Government, wages, vendor liabilities update
At the time of the completion of the private placement and change of management in September 2016, the Company was experiencing significant setbacks in three primary areas: taxes owed to the Government, outstanding wages to employees, and vendor debts.
Payment of outstanding concession fees has brought all of the key concessions into good standing, with the remaining non-core concessions either being sold, negotiated for operating agreements or reduced in size.
Agreements have been reached with employees to defer outstanding claims, with some employees continuing employment and some being downsized to improve efficiencies.
Negotiations are underway with most suppliers to pay outstanding indebtedness, with some settlements and payment plans agreed to. Most suppliers have agreed to defer payment claims to allow the mine and plant to ramp up to production in the short term.
Vertex Managed Value Portfolio and Vertex Enhanced Income Fund (collectively, "Vertex") Restructuring
On September 7, 2016, the Company entered into a restructuring agreement dated September 7, 2016 (the "Restructuring Agreement") with Vertex, to defer the debt payments owing by the Company to Vertex. Please refer to the Company's press release issued on September 7, 2016 for further details.
Vancouver Corporate
Downsized current head office space.
Reduced head count.
Senior management and directors are receiving no cash salary or fees until the Company is further capitalized or generates positive cash flow.
Private placement - convertible debenture
The Company is pleased to announce an offering, on a private placement basis, of a US$1.0 million convertible secured subordinated debenture with the following key terms (the "Private Placement"):
2 years maturity.
12% interest per annum.
CAD$0.25/share conversion rate, based on the noon Bank of Canada Canadian dollar/US dollar exchange rate on the date immediately preceding the closing of the offering.
Secured through a pledge of all of the issued and outstanding share capital of Elipe S.A., an indirect wholly owned subsidiary of the Company, ranking behind the Vertex loans outstanding.
CAD$50,000 finance fee.
Four month hold period.
Credipresto SAPI de CV SOFOM ENR ("Credipresto") will be the subscriber for in the Private Placement. Credipresto has already fully advanced the US$1.0 million in multiple tranches over time, which debt will be replaced by the convertible debenture. Based on current exchange rates, if the convertible debenture is fully converted into common shares of the Company, approximately 5,317,200 common shares of the Company would be issuable to Credipresto. The offering is subject to customary closing conditions including Toronto Stock Exchange approval, and is expected to close on or before January 31, 2017.
The proceeds of the loan will be used for working capital and general corporate purposes.
Keith Piggott, President and Chief Executive Officer of Dynasty commented: "We are happy that the first 100 days of our new management with a diverse skilled team, has implemented initial changes to improve efficiency, together with bringing on stream the Dynasty Goldfields Project, restarting the Portovelo Treatment Plant and recommencing operations at the Zaruma mine. The loan from Credipresto will provide Dynasty extra working capital to further advance our operations in Ecuador which is expected to bring the Company to positive cash flow in 2017. I would especially like to thank The Minister of Mines in Ecuador and other officials for their advice in strengthening our social and local relationships and concession restructuring, and also the dignitaries of the local communities of Zaruma, Portovelo and Celica who have facilitated our ability to recommence operations."
About Dynasty Metals & Mining
Dynasty Metals & Mining Inc. is a Canadian based mining company involved in the mining, exploration and development of mineral properties in Ecuador. The Company is currently focused on gold production and continued development at its Zaruma Gold Project. The Company also owns the Dynasty Goldfields Project, a permitted property 180km southwest of the Zaruma project, and the Jerusalem Project, an exploration property immediately south of the Fruta del Norte project.
For further information please visit the Company's website at www.dynastymining.com.
Scientific and technical information relating to Zaruma and Dynasty Goldfields presented herein have been reviewed and approved by Rodney A. Blakestad, J.D., C.P.G., a Qualified Person as defined in Nation Instrument 43-101.
http://www.marketwired.com/press-release/dynasty-provides-first-100-days-corporate-update-tsx-dmm-2187071.htm
Dynasty Announces Closing of Debt Restructuring
VANCOUVER, BRITISH COLUMBIA--
(Marketwired - Sept. 16, 2016) -
Dynasty Metals & Mining Inc. ("Dynasty" or the "Company") (TSX:DMM)(OTCQX:DMMIF) is pleased to announce that it has closed the restructuring agreement in respect of its indebtedness owing to Vertex Managed Value Portfolio and Vertex Enhanced Income Fund (together, "Vertex") in the aggregate principal amount of US$4,000,000, previously announced on September 8, 2016 and September 12, 2016. Receipt of conditional approval from the Toronto Stock Exchange has been obtained, the documents held in escrow have been released and the restructuring has now completed effective September 15, 2016.
http://www.siliconinvestor.com/readmsg.aspx?msgid=30745984
I'm still holding onto this one.
4 years since the last post on this forum.
It has been a long haul for most Dynasty Metals and Mining shareholders.
From the sounds of the forward looking statements the company is making along with the release of the 2cd quarter 2015 financials, it might be a good time look at the possibility of throwing a little money into this play.
Huge potential upside, and as long as the company hits their targetted production goals, little downside risk at present share price.
Q2 News release:
http://www.dynastymining.com/investors/newsreleases/pr_2015_08_14.php
Q2 financial report:
http://www.dynastymining.com/investors/sedar/DMM_Financial_Statements_2015_Q2.pdf
Q2 MD&A:
http://www.dynastymining.com/investors/sedar/DMM_MDA_2015_Q2.pdf
42,461,083 shares issued and outstanding at C$0.60 for current market cap of only C$25.5 million. Processsing plant capacity currently over 300,000 tonne per year is fully operational and completely paid for. An additional $3 million CAPEX will take capacity up to 800,000 tpa.
Updated 43 101 compliant resource estimates were completed in 2014
http://www.dynastymining.com/investors/technical.php
Total resources little changed from older 43-101 reports -
6 million oz of gold and 27 million ounces of silver.
Zaruma Mine is 9th richest grade operating gold mine in the world
Latest company presentation :
http://www.dynastymining.com/investors/presentation.php
*******************
Q2 results were weak as was expected as the company was concentrating on developing declines and underground infrastructure in order to access multiple faces of the resources starting in Q3.
For the first six weeks of Q3 the company has already produced the same amount of gold ounces as they did for the whole of Q2, so they are at least starting to ramp up production. Production is running at 300 - 350 tpd currently.
Assuming 325 tpd average and 3250 reported ounces sold already on Q3, grade is roughly 7.4 gpt assuming a 93% recovery rate in the processsing plant.
Headgrade should be up to 10 gpt headgrade near term as stated by Pres. Bob Washer in June 22 news release.
"Dynasty has reached the point where mining has started to ramp up following the development of the new sections of the decline," commented Mr. Washer. "We are excited that the decline has now reached a suitable position and depth from which we may begin mining both the Soroche and Matalanga veins in the levels below the previous workings, where the head grade is approximately 10 grams per tonne gold. Once we begin extracting ore from the new mining faces, we expect a significant increase in gold and silver production over the next quarter, continuing to the end of 2015."
Company needs to ramp up production tonneage and grade in the near future, as repayment of $4 million loan starts Oct 30, 2015 at $500,000 per month for 8 months.
"Subsequent to June 30, 2015, and up to the date of this news release, the Company has sold approximately 3,250 ounces of gold for proceeds of approximately $3.6 million which have primarily been used to fund the Zaruma Project. In the coming quarters the Company anticipates an increase in production at the Zaruma Project as additional mining faces are accessed and the daily tonnage mined is ramped up towards 500 tpd by the end of the year."
Guidance of 500 tpd in early 2016 and increasing thereafter as more faces are opened is encouraging ...
"With additional mining faces expected to be accessed over the next several quarters, Zaruma is expected to ramp up towards 500 tonnes per day (“tpd”) in early 2016 and continue to increase tonnage through 2016 and into 2017."
Based on company's guidance .... expect to see a minimum of 50,000 oz of gold produced in 2016
500 tpd X 10 gpt X 350 days X 93% recovery rate / 31.1 g/oz = 52,231 oz ( use two weeks downtime for maintenance)
With production expected to ramp up over the course of 2016 and 2017, production should be much higher by year end 2016 ...
Do your due diligence.
DMM CEO Mining 101 Video
DMM CEO Rob Washer explains just how gold is produced. Great, quick vid worth a watch imo
Looks to me like the whole sector is about to go so the timing of the law in Ecuador is favorable, for sure.
Nice! I imagine it is due to the following:
Cornerstone Capital Resources Inc. (TSX VENTURE:CGP - News; FRANKFURT:GWN - News; BERLIN:GWN - News; PINK SHEETS:CTNXF - News) is pleased to announce that at a meeting held yesterday in Toronto, the Government of Ecuador confirmed that the Regulations to the Mining Law will be approved by November 4, 2009 and exploration work will then be allowed to resume.
This announcement was made by the Ecuadorian Vice-Minister of Strategic Sectors, Mr. Luis Roman and the Vice Minister of Non-Renewable Natural Resources (ex Ministry of Mines and Petroleum), Mrs. Carolina Bernal. Both Government representatives are part of an Ecuadorian delegation that met with their Canadian peers in Ottawa the previous day.
Dynasty has poured their first gold and silver. Pictures have been added to the iBox.
From the Denver presentation:
Highlights
•Discovered approximately 6 million aggregate ounces of gold within 3 advanced stage projects
•Completed construction of first gold processing plant, with expandable capacity, at a cost of approximately US$16 million
•Commenced mining and plant start up in August 2009. The Company is expected to reach a commercial level of production by the end of this year. Cash operating costs, at such time, are forecasted to be less than US$300 per ounce.
•All major capital expenditures have been made and the Company’s current cash position is approximately US$8 million
•Progressing contract discussions with Ecuador government
Dynasty presented at the Denver Gold Forum this week. I have not been able to get the webcast to play (on a Mac) but downloaded the presentation. Company is set to pour first gold and is one of Claude Cormier's faves...
Why does the quote show 7 and change? Ah...the symbol needs to be changed to DMM.to from DMM.v.
Started a position in DMM today...breaking at least a few of my rules in the process...
DMM Dynasty Metals acquires Copper Mountain property
2005-06-21 09:43 ET - News Release
Mr. Robert Washer reports
DYNASTY ACQUIRES ADDITIONAL COPPER-GOLD PORPHYRY-STYLE SYSTEM IN ECUADOR
Dynasty Metals & Mining Inc. has acquired the Copper Mountain copper-gold porphyry property in southern Ecuador.
Copper Mountain is located approximately 110 kilometres northeast of the company's Zaruma gold project, and 40 kilometres from Iamgold Corp.'s advanced Quimsacocha gold project. Copper Mountain is a three-kilometre by six-kilometre porphyry-style system featuring advanced high-temperature argillic alteration.
Previous exploration at the property identified a large copper, gold and molybdenum anomaly on porphyry, within a regional, nine-square-kilometre volcanic caldera structure. Approximately 320 soil samples, on 100-metre spacing over leached soils, outlined an anomaly of 1.2 kilometres by 1.0 kilometre in copper and molybdenum, with values ranging from 33 to 105 parts per million and two parts per million to 14 parts per million, respectively.
Copper Mountain also includes a 200-metre by 1,200-metre epithermal vein system, comprising two major outcropping veins, 1.5 kilometres to the west of the porphyry system. Previous exploration of these leached quartz-sulphide veins included a total of 15 channel rock samples with results ranging from 0.1 gram per tonne gold to 1.0 gram per tonne gold and two grams per tonne silver to 10 grams per tonne silver, over an average width of six metres.
The company will now proceed to map the surface anomaly so as to understand structural controls and the possible depletion of mineralization in the surface weathering environment. The anomaly appears to be similar to the iron oxide copper-gold Candelaria deposit in Chile and is extensively soil covered in the north, suggesting the possibility of future expansion in that direction.
Other projects
The company continues to advance its other gold projects in southern Ecuador. Drilling is continuing at the company's Dynasty copper-gold belt, where results to date suggest the existence of a new gold-bearing system. Intersections of 17.38 grams per tonne gold and 723 grams per tonne silver over 3.3 metres and 2.16 grams per tonne gold and 21 grams per tonne silver over 50.40 metres in holes 05DDH05 and 05DDH13, respectively, were announced in the company's news issued in Stockwatch on May 19, 2005.
On the company's Zaruma and Jerusalem gold projects, underground and surface exploration and scoping studies are in progress.
Quality control and assurance
Exploration of the company's properties is under the supervision, of Greg Whitfield, the company's exploration manager and a qualified person, as defined by National Instrument 43-101. Mr. Whitfield is responsible for the preparation of technical information in this news. Samples are sealed on the property and shipped to the BSI Inspectorate laboratory in Lima, Peru, for preparation and gold fire assay. Sample pulps are shipped by BSI Inspectorate to its laboratory in Reno, Nev., for silver and multielement ICP analysis.
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Business Description
Dynasty Metals and Mining is a Canadian company focused on gold production and resource development in southern Ecuador. Dynasty owns 100% of two advanced stage gold properties: the Zaruma and Jerusalem Gold Projects and one large scale discovery, Dynasty Gold Fields. In September 2009, the company has fully commissioned the mine at Zaruma and is preparing to pour their first gold there.
TSX: DMM | OTC: DMMIF
Corporate Highlights (from web site)
Share Structure
Outstanding: 35,591,129
Fully Diluted: 39,488,083
Management & Directors
Robert Washer - President & CEO
Nick Furber - Chief Financial Officer
Bill McCartney - Director of Business Development
Brian Speechly - Director
Mark Bailey, MSc. P. Geol - Director
Yale Simpson, B.Ap.Sc. (Geological Engineering) - Director
Ernesto Andrade Veloz - Director
Due Diligence Materials
News
Click here for the latest news.
Charts and Images
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