Since my last update, on January 26, 2006, Dynasty has been tremendously active on a number of fronts. During this time, we have:
- received an independent preliminary economic assessment of our advanced Jerusalem Gold Project, which includes a recommendation to commence a feasibility study (see press release dated March 6, 2006);
- received an independent preliminary economic assessment of our advanced Zaruma Gold Project, which includes a recommendation to commence a feasibility study (see press release dated July 12, 2006);
- received an independent initial estimate of resources on our exploration-stage Dynasty Goldfield Project (see press release dated April 24, 2006);
- raised $10 million in a brokered private placement of common shares, at $5.00 per share (see press release dated May 17, 2006);
- acquired an option to buy back, on favourable terms, a 3% royalty otherwise payable on our Zaruma Gold Project (see press release dated July 10, 2006);
- purchased two diamond drill rigs (one has now been delivered), contracted a third rig, and commenced a second-phase drilling program at our Dynasty Goldfield Project;
- commenced construction of a pilot processing plant at Zaruma, for bulk sample testing;
- discovered new high grade veins and increased our mineral concessions and surface rights at Zaruma, to secure access to our resource (see news releases dated August 9 and 22, 2006);
- identified several new prospective target areas through regional exploration within the Dynasty Copper-Gold Belt; and
- sourced and priced several pieces of mining and plant equipment for the Jerusalem and Zaruma projects.
Clearly, it has been an extremely busy and successful six months, during which we have made significant progress towards our ultimate objective of becoming a gold producer. At the same time, we have continued to explore aggressively our extensive holdings in southern Ecuador, an area that has recently attracted intense market interest.
The market has recognized our progress, with our share price rising from $2.85 in January to a high of $7.02, and, most recently, closing at $6.48.
At $6.00 a share, with only 25.4 million shares issued, the Company's current market capitalization is $152 million ($175 million, fully-diluted). We currently hold approximately $10 million in cash ($14.5 million, fully-diluted) and have defined estimated resources on three projects.
For the balance of 2006, our plans for the Jerusalem and Zaruma Gold Projects include:
- continuing with feasibility studies for both sites;
- completing final mine plans and mill designs;
- securing new and/or used plant and machinery in accordance with our mining plans and budgets;
- completing additional metallurgical studies;
- undertaking additional exploration work to expand and upgrade existing resources;
- continuing construction of the pilot plant at Zaruma; and
- opening the main decline at Zaruma to facilitate exploration and development work.
With our present working capital, we have the financial resources to meet these objectives and expect to generate a steady stream of positive news over the coming months.
I wish to thank our shareholders for their continued support.
President & Chief Executive Officer"
About Dynasty Metals & Mining Inc.
Dynasty Metals & Mining Inc. is a Canadian-based mining company involved in the exploration and development of mineral properties in Ecuador.
Dynasty Metals & Mining Inc.
Robert Washer, President and CEO
For further information about the Company, please contact Murray Oliver at (604) 687-0888 or email@example.com or visit the Company's website at www.dynastymining.com.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.