Dynacor Gold Mines - MK ~8Mio€ 25,789 Unzen in 2007 abgebaut - wo ist der Haken? - 500 Beiträge pro Seite

[Rainolaus]

erst seit kurzem gelistet gutes Team, 600000 Unzen historische Resourcen, News von unten ist irgendwie untergegangen; der ganze Wert ist noch ziemlich unter dem Radar - jetzt aber der Hammer:

aus Stockhouse (http://www.stockhouse.ca/bullboards/viewmessage.asp?no=17823…

GOLD SALES WERE 11,050 ounces for the nine-month period ended September 30, 2007 .

Todays NR states that the Acari mill produced a record 25,789 ounces of gold in 2007 ( 11,411 in 2006 ).

THAT MEANS THAT DNG PRODUCED 14,739 OZ IN Q4 !!!!!!


wo ist der Haken? Ich meine die Frage ernst!



Dynacor produces 25,789 ounces Au at Acari mill in 2007

2008-01-16 09:13 ET - News Release

Mr. Jean Martineau reports

GOLD PRODUCTION TOPS 25,000 OUNCES AT DYNACOR GOLD'S PLANT IN PERU

Dynacor Gold Mines Inc.'s Acari mill, in 2007, produced a record 25,789 ounces of gold. Gold production increased by 11,411 ounces representing an increase of 79 per cent, as compared with the 14,378 ounces the mill produced in 2006. Jean Martineau, the company's chief executive officer and president, commented recently: "For the first time in the company's history, gold production exceeded the targeted production as mentioned in the company's 2006 annual report; Dynacor plans to continue increasing the production capacity of the Acari mill, to reach a gold production of 20,000 ounces in 2007 and 25,000 ounces in 2008. The company has in fact reached its 2008 target of 25,000 ounces one year in advance." This extraordinary result is due to an increase in the plant's milling capacity, improved technology as well as new administrative and cost-control procedures that were implemented by the company's management both in Canada and in Peru.

Acari plant

In the last quarter of 2006 and during 2007, a series of major changes were gradually implemented at the Acari plant, and this process is continuing. First and foremost, starting in the third quarter of 2006, the milling rate was increased to 100 tons/day by purchasing new equipment and upgrading some of the existing equipment. Two new cyanidation tanks were built and a third one is being completed. Ore purchases were optimized and the average year-round gold grade of the custom milled ores increased by 29 per cent (equivalent to an increase of 6.14 grams per tonne). Furthermore, during 2007, gold recovery rates were also optimized and increased by more than 2 per cent.

New monitoring and cost-control procedures were introduced, and recycling of certain chemicals and process solutions was enhanced, in particular with respect to cyanide. New processes were implemented in order to increase the recovery of metallic silver and mercury. Finally, new environmental safety procedures were implemented and worker safety was also enhanced.

Outlook for 2008 to 2009

In 2008 to 2009, the company plans to gradually increase its milling capacity to 150 tons/day and finish building a Merrill Crowe cyanidation unit. Installation of the Merrill Crowe tank is now 80 per cent completed and this equipment should be on-line in the first quarter of 2008, after it has been fully tested. Once this tank is operational, the milling capacity at Acari can be increased step by step.

Installation of the new copper/gold/silver custom mill has now been completed, and the unit is being tested using various types of ores to assess its operability. This new unit consists of a cyanide-free process that is based on crushing and sizing the ores, and chemical flotation. Initially, its capacity will be 20 to 40 tons per day, but this can be increased at a later date depending on the demand for custom copper ore milling and its profitability.

Over all, the company's management is very optimistic in regard to the future development of the Acari mill for 2008 to 2009. Dynacor Gold has the financial resources necessary to continue increasing its activities at Acari, thus the generation of free cash flow that can be used for exploration of the company's mining properties and/or the acquisition of new ones.

Drilling under way at Tumipampa

Drilling began in November/December, 2007, and is currently actively under way. The company has already completed drilling of two holes and has begun work on the Manto Dorado. Dynacor will report the first results as soon as they are available.

Ivan Quiroz, vice-president of operations and director, is a mining engineer and metallurgist, and a member of the Collegio de Ingenieros del Peru. He is Dynacor Gold's qualified person and is responsible for the technical information contained in this press release. Thus, Mr. Quiroz can testify to the precision and exactitude of the data, and the mining and geological knowledge of the Acari plant, and the Tumipampa property, as required by National Instrument 43-101 and its annexes with respect to the reporting and content of this press release.

We seek Safe Harbor.

[Maigret]

Der Rock07 ex Rock17 im Bullboard hat ab und an mal ein feines Näschen.

Der letzte Q-Bericht war ne schwarze 0.

Frage ist ob Sie die Kosten weiterhin im Griff haben. Im letzten Q-Bericht > 600 USD

"The average sale price was US$658 per ounce for the three-month period, and US$656 per ounce for the nine-month period. Cost of sales per ounce of gold was US$603 for the three-month period, and US$605 for the nine-month period"

nicht gerade wenig.... ,o.K. POG ist nun bei 880 USD.

aber ohne N43-101 wird das ein Kleinzocker-Wert bleiben. Aber dass muß einer schönen Rendite ja nicht im Wege stehen...

hhmmm erstmal Watch. Mitte Februar wirds die nächsten Quartalszahlen geben und vielleicht 1-2 Wochen vorher mit ner kleinen Posi rein.... Ich glaub im aktuellen Marktumfeld rennt einem nichts davon.

Maigret

[Rainolaus]

Antwort auf Beitrag Nr.: 33.102.495 von Maigret am 18.01.08 22:44:27

stimmt. dieser "Rock07" erschien mir auch recht kompetent.
hier eine gute Resonanz/Zusammenfassung auf SH:


SUBJECT: RE: Actually, 200 tpd in Q4 at Acari !!!! Posted By: sanspeine

Wow, what great analyses , yet it was there for anyone to see if they took the time.
A production of 60,000 oz a year, with just 30 m shares, would normally qualify for a $3 stock.

I think investors look at these numbers as primarily a milling play,rather than a gold production play.

What they fail to recognize, as you have pointed out, is that building mines is very expensive and dilutive, as it involves large investments first in exploration and manpower, and then in building a mine and mill.
These risks are very high, yet Dynacor is able to produce 15,000 oz a quarter, without taking any of those risks,simply by buying gold ore from local miners and then making their profits in the milling and sales of the finished product.

They will make their pound of flesh regardless of the price of gold, and can always use their milling capacity at Acari to process their own ore from their Acari desposit.

Note also that the average grades being processed from the local miners is identical to the 16.5 gms/ton that is held by Dynacor's Acari deposit.

That means they are mining the same type of veins as Acari has, which means that there is a lot of high grade gold immediately adjacent to the Acari concessions held by Dynacor.

Thats why Dynacor is holding its Acari reserves of 606,000 oz for later.

[Rainolaus]

SUBJECT: Actually, 200 tpd in Q4 at Acari !!!! Posted By: TheRock07
Post Time: 1/16/2008 14:14

There are several factors responsible for this major increase in Gold production at Acari, to nearly 15,000 oz in Q4
1.. First and foremost starting in the 3rd quarter of 2006 the milling rate was increased to 100 tons/day by purchasing new equipment and upgrading some of the existing equipment. Two new cyanidation tanks were built and placed in operation in Q4 and Ore purchases were optimized.


2.. secondly , the average year-round gold grade of the custom milled ores increased by 29% (equivalent to an increase of 6.14 g/t). I have looked at this statistic further, and at 95 % recovery, the head grade in Q4 was about 22.7 gms/ton ( 6.14//.29 X 0.95 ).

As there were 14,750 oz of gold recovered, the ore milled in Q4 was 20,100 tons . That is 200 tpd or twice the rated capacity!

I had assumed that the Acari mill would run at its breast-plate capacity of 9000 tons/ quarter ( ie 1 shift of 100 tpd, for 7 days a week, 90 days a quarter ).
Instead, by adding another shift and adding new technology, they were able to double the nominal capacity to over 200 tpd.

3. Thirdly, a much higher gold price encouraged more mining by the artisanal miners.

4.Fourthy, gold recovery was increased by 2 %.

Put all of these factors together, and you can easily explain why my estimate was under by a factor of 2....a double shift I never expected.

Looking forward, I had assumed that in 2008, the operating margin would increase to about $80/oz and that gold production would be at least 40,000 oz/year , when the new mill began in Q2 and when the existing Acari mill was expanded to 150 tpd ( or 300 tpd if double shifted ).

These are now very conservative projections.


Operating margins in Q4/07 and esp 2008 should increase to above the $100 /0z level due to..... gold recovery rates have ben optimized and increased by more than 2%, new monitoring and cost control procedures, recycling of certain chemicals and process solutions was enhanced, in particular with respect to cyanide,the second mill will permit the recovery of silver and copper credits, and finally, doubling the ore thruput will considerably decrease milling costs per unit ore processed.



So for 2008, we could see as follows..

..the POG is now much higher than in Q4, and that should ensure that artisanal mining activity will remain strong in 2008.

.. the potential milling capacity will increase from 80,000 tons/year ( the Q4 annualized rate ) to about 115,000 tons/year ( I assume one month of downtime )

...average recovered gold grades were 22.2 gms/ton in Q4, above the long-term average of 16 gms/ton.

Assuming average gold grades for 2008, would suggest that by Q2, when both plants are running at their new capacity, the annual gold production runrate will be 60,000 oz /year and will generate an operating profit of $6 million or about $0.20 /share.

If Q4 grades are sustained in 2008, the production runrate could be as high as 80,000 oz/year and operating profits would be above $8 million ( $0.27 /share ) on about $70 million in gold sales and perhaps $80 million when the gold and copper credits are added.

On the low side, I will stick with 40,000 oz/year, as that level should be easily achievable in 2008, as it implies only 10,000 oz/quarter , which is well below the 14,750 oz produced in Q4.

Even without its advanced gold properties, DNG should be at least a $2 stock in 2008, if it achieves 80,000 tons of ore milled..which now appears to be almost certain.

As you say, Renmark will have some juicy material when the roadshows begin in March.....DNG is the best buy on the bourses.

[Rainolaus]

Antwort auf Beitrag Nr.: 33.102.495 von Maigret am 18.01.08 22:44:27

Frage ist ob Sie die Kosten weiterhin im Griff haben. Im letzten Q-Bericht > 600 USD


das sind dann Eigenkosten und Ankaufkosten des Gesteins von anderen, oder?
Trotzdem können sie wenn sie soweit sind ihr eigenes Gestein in ihrer eigenen funtkionierenden Mühle selbst verarbeiten. Schon eine Besonderheit gegenüber anderen. Und 8Mio finde ich dann doch recht preiswert.

[Rainolaus]

4 Mio Cash haben sie auch noch bei 12 Mio CAD MK?


SUBJECT: RE: DNG''''s Advanced Tumipari Gold Project Posted By: TheRock07
Post Time: 12/29/2007 12:00

T.DNG was recently formed as a spin-off of the Peruvian gold assets by T.MLG, including a custom milling operation which has been buying gold from artisanal miners for 10 years.
DNG has 30 million shares ( 35 million fully diluted ) , of which insiders/funds own more than 60 %.
It has new management, only very modest debt, and in excess of $4 million in cash.It is fully funded for its 2008 exploration and mill expansion program

DNG's main assets are a custom gold mining plant, along with 3 gold 100 % owned exploration properties in Peru, one of which ( Acari , on which its custom milling operation is also located ) is very advanced , another ( Tumipuma ) has substantial historical drilling, and a third which is a grass roots project.
Acari Custom Milling Assets

In its custom milling plant located on its Acari property, DNG has recently expanded its gold milling capacity from 60 tpd, to 100 tpd , with a further expansion to 130 tpd in early 2008, and is constructing a second milling plant at an initial 50-60 tpd, which will be able to extract copper and silver in addition to lead.

These miners exploit the many high grade gold veins that are ubiquitous in the Acari region and whose ore is typically about 1 oz/ton. ( The Acari mill is located on DNG's Acari gold concession , but its gold veins are not mined nor do they supply a feedsource to the Acari mill ).

In the recently reported Q3 , DNG's Acari mill produced a record level of 7,478 ounces of gold ( slightly above 1 oz/tons ) which generated sales of $5,237,366. This was more than double the 3200 oz produced in Q3/06.Operating margin was $55 per oz , resulting in operating earnings of $443,280 ( $0.015/share )


Looking forward to 2008, milling capacity by mid-year 2008 is expected to reach 180-190 tpd , which should produce 40,000-50,000 oz of gold per year, along with additional credits from silver and copper bycredits , for which a Swiss buyer has agreed to buy.

At this expanded level, gross revenues should be in the $35 million to $40 million range , generating annual operating earnings of $3.5 million or more.This is a very low risk operation ( no exploration or development costs ) whose growing cash flows will be used to fund exploration and development of its Acari and Tumipampa gold projects .

Based on these production statistics, DNG should have a fair market value above $1 per share.

Advanced Acari Gold Project

The 3900 hectare Acari Property is 100 % owned by DNG, and is part of the gold-bearing Nazca-Ocoña belt that is located in southern Peru. It is surrounded by many small gold mines which are worked by artisanal miners who sell their ore to DNG.

More than ten major veins have already been uncovered on the Acari Property, ranging in length from 1,200 and 1,600 meters long.

Three bulk samples have been taken from several of these veins, with gold grades between 1 and 1.6 oz/ton. These data, along with data from access adits, drifts and raises have enabled an historic estimate of 607,000 oz of gold at 16.4 gms/ton. This estimate is for just a portion ( 35 % ) of the 3 larger veins , indicating the potential for a multi-million oz high grade gold resource. A 43-101 estimate may be derivable from these unorthodox sampling methods in 2008.
In 2004, DNG conducted a feasability study for this inferred resource and concluded that it could sustain a 54,000 oz/year mining operation at a cash cost of $256 /oz and at 360 tpd milling operation.

At $50 per oz in situ, these inferred gold resources would be valued at about $1 per share, undiscounted.

Advanced Tumipari Gold/Silver Property.

The Tumipampa gold project is located 500 km from the city of Lima, adjacent to concessions being explored by the following companies: Meridian Gold, Bear Creek and Southern Peru.

During 2002 and 2003, a first exploration campaign was carried out in the NE area of the property, covering 300 hectares , including geophysical, surface geological and geochemical studies and a diamond drilling campaign (16 holes - total of 4,050 meters).

Results showed that holes located near the outcrops of the veins had significant gold grades. For instance, veins 1, Z, and A were intersected by drilling and the following gold assays were obtained: diamond drills HDD1 (7.33 g/t Au across 6 meters), HDD3 (8.20 g/t Au across 4 meters), and HDD6 (12.25 g/t Au across 2 meters).

In 2006, a reinterpretation and general review of the project as well as an initial survey in the field was done on the entire Tumipampa Property during which new veins were discovered and earlier known veins were further studied - all told adding up to a total of 10 structures with economical gold grades.

The veins: 1, Z, 2007, San Pedro, Escondida, Esperanza, Porvenir, A, B and El Manto Dorado were also revealed by the presence of old surface work done during the colonial period. Channel sample analysis of the latter veins found grades between 1 and 25 g/t Au. Hydrothermal breccias in quartzite grading up to 1g/t Au were also identified.

The presence of old surface workings dating back to the Spanish colonial period can be readily observed over a portion of the major veins, and the scale of these historical mining activities is indicative of the richness of this vein. For instance, analyses of samples taken from an old ore stockpile returned a grade of 12.70 g/t Au.

A major drilling campaign began in November and will total 11,000 m when completed in 2008.
The company is confident that the overall 11,000 meters of drilling will yield sufficient data to determine an economic potential of the gold mineralization found within the Tumipampa Property.

That is, by exit 2008, DNG should have sufficient information for a 43-101 compliant resource estimate , and the company believes that grade levels will be such as to be economic.

Summary

DNG is a well-funded junior gold producer , which , thru its low risk custom gold milling operations, will significantly increase its cash flows in 2008 and beyond, and whose 2 advanced Peruvian gold projects offer well above average potential for mine developments in the near-term.

These are my evaluations; others are encouraged to conduct their own independent DD.

[invest2002]

[Rainolaus]

wenn man bisher davon ausging, dass in 2007 20000 produziert werden und in 2008 25000, und man DNG dafür einen Kurs von 0,40 zugestanden hat, dann sollten die seit 16.01. für 2007 nachgewiesenen 25000 und für 2008 die 60000 (aufgrund der 14500 nur in Q4 und der geplanten 2ten Mühle), den Kurs doch ein wenig beflügeln können.
Sollten sie tatsächlich Ende 2008 ihre Resourcen von 600000 Unzen nach 43-101 verifiziert haben dürfte aber endgültig schlagartig Schluss sein mit einer MK von nur 12 Mio CAD.

60000 Unzen in 2008 mit 60 USD Marge bringt immerhin jetzt schon mal 3,6 Mio rein. Das ist eine mehr als Verdopplung gegenüber dem Stand von vor einer Woche.

Wie läuft so ein Custom Milling? wenn grosse Gesteinsmengen gekauft werden und der Goldpreis zwischenzeitlich massiv steigt, steigert das dann nicht auch den Wert des Gesteins das auf Halde liegt? Oder wird nur nach tatsächlich gewonnenem Gold bezahlt? Wie kann das der Verkäufer überprüfen, was rausgekommen ist? Jedes mal vor dem Kauf eine Gesteinsanalyse wäre ja sicherlich auch etwas aufwendig.
Wer kennt sich damit aus?

[Rainolaus]

ich sehe gerade, dass Rock auf SH auf meine Fragen geantwortet hat (meine Fragen in Fett); er liefert auch eine Antwort auf meine Frage von eben.


1. You calculated with 100 USD Net Income/ Ounce. I thought it´s 40-80?

As I earlier pointed out, the modifications to the existing plant has increased gold recoveries and introduced optimzation efficiencies, higher thruput means lower operating costs per ton and overall reductions in operating costs should result in an operating margin of about $100/oz, or about $20 higher than my earlier forecast of $80/oz.

2. You talked about some kind of Roadshow that they started. Do you any details about that?

The roadshow by Renmark begins in March , at which time they will have some assay results from current drilling. DNG also have their own in-house IR who does the usual PR activities

3) the most important question for me: How much do they pay for the high grade material from the miners? How is this working?

My understanding is that the ore is milled and assayed and the miners get paid based on those indices of production and grade from which margins are determined as a proportion of the value

4) How much time will they need to build up the mine beside the need of financing? And last not least: Why didn´t they start much earlier with building up a mine overthere?

MLG..formerly Dynacor.. has been concentrating on developing its tungsen mine and hydro assets for the past 3 years, and did not put any effort into Acari until 2007 when it spun the gold assets out.

MLG did a feasability study in 2004 which concluded that 54,000 oz/year could be produced at a very reasonable cash cost. POG was low at the time, and a 43-101 was found to be needed in order to bring investment funds to the plate for mine development costs.
Hence, mine development did not proceed.

With POG now near $900 and a much expanded mill, perhaps the chances for a mine at Acari are much greater, as the cash flows could offset some of the mine costs..

[Rainolaus]

bei Nordnet lässt sich DNG auch erst seit heute in Kanada handeln.