Vancouver, BC, January 26, 2006 - Dynasty Metals & Mining Inc. (TSXV: DMM, “Dynasty” or the “Company”) provides the following update to shareholders from its President, Robert Washer:
Dynasty continues to make significant progress in the active exploration and development of our mineral projects in Ecuador. The following is a current status report on each of our principal projects:
The Jerusalem Gold Project
In the last quarter of 2004, we revised upwards our resources estimates for the Jerusalem gold project in compliance with Canadian National Instrument 43-101. In 2005, we commissioned a preliminary assessment (scoping study) of the project. This assessment will be used to plan its further development and as a base document for discussions with potential development partners. We have been working diligently with our independent consultants to produce an initial draft of the assessment for presentation to our directors, and we hope to publish its findings within a few weeks. The report, when released, will include a mining plan and projected cash flows.
Our plan for 2006 is to continue to advance Jerusalem toward a bankable feasibility study. Although ongoing exploration will be guided by the preliminary assessment report, we expect that future work will include surface drilling along strike, and underground drilling from declines developed to mine the existing resource.
About the Jerusalem Gold Project: The Jerusalem Gold Project comprises one, 100% owned, concession, located in the Zamora Chinchipe Province of south eastern Ecuador, about 40 km east of Zamora. The concession covers 2.25 km2 at altitudes ranging from 1400m to 1900m. The Company has no work obligations or property payments with respect to it.
Estimates of gold resources on the Jerusalem property are contained in two reports, dated October 29, 2004 and December 22, 2004, prepared by Allen J. Maynard BappSc, MAIG, MAusIMM, an independent “Qualified Person”, as determined by NI 43-101, and are summarized in the following table:
|Measured||Avg. Grade||Indicated||Avg. Grade||Inferred||Avg. Grade|
The Zaruma Gold Project
In the last quarter of 2005, we revised upwards our resource estimate for the Zaruma gold project in compliance with Canadian National Instrument 43-101, and commissioned a preliminary assessment (scoping study) of it. As with the Jerusalem preliminary assessment, this report will be the basis for the further development of the project and for discussions with potential development partners. The report will include a mining plan and projected cash flows and we expect to be in a position to publish it before the end of the first quarter.
Our plan for 2006 is to continue to advance the Zaruma Project toward a bankable feasibility study. Although our ongoing exploration will be guided by the preliminary assessment report, we expect that future work, as at Jerusalem, will include surface drilling along strike, and underground drilling from declines developed to mine the existing resource.
About the Zaruma Gold Project: The Zaruma Gold Project comprises 44 concessions, located in the El Oro Province of south western Ecuador, in the vicinity of the towns of Zaruma and Portovelo. Forty-three of the concessions are 100% owned. Title to the remaining concession is subject to future option payments. The concessions cover 103 km2 at an altitude of 650m to 1600m.
The Zaruma-Portovelo Mining District is a major, high-grade goldfield, having produced over 5,000,000 ozs of gold in the past. Modern mining was initiated in 1905, when the South American Development Company developed the Portovelo mine, and ended in the 1950s. Dynasty has been able to reassemble most of the concessions that made up the original goldfield.
Estimates of mineral resources of the Zaruma Gold Project, which comprises the Zaruma property and the associated Portovello district, are contained in two reports: dated October 22, 2004, prepared by Miroslav Kalinaj MSc; and dated October 21, 2005, prepared by Allen J. Maynard BappSc, MAIG, MAusIMM, both of whom are independent “Qualified Persons”, as determined by NI 43-101. These estimates are summarized in the following table:
|Measured||Avg. Grade||Indicated||Avg. Grade||Inferred||Avg. Grade|
The Dynasty Copper-Gold Belt Project
In the last twelve months, our exploration work at the Dynasty Copper-Gold Belt has focused on the Papayal and Cerro Verde sites, which cover an area 13 km by 4 km. In 2005, we successfully completed trenching and sampling of twelve separate epithermal vein swarms, over 30 km2, and 6843 meters of diamond drilling, in 58 holes. We intersected encouraging gold grades at surface to depths of 250 meters. During the year, we named the larger area of quartz veins and stockworks, of which Papayal and Cerro Verde are part, the “Dynasty Goldfield” in recognition of the extensive gold and silver mineralization that we have identified.
Our exploration plan for 2006 includes an aggressive drilling program to expand and define the Dynasty Goldfield resource. To that end, we have purchased our own drill rig (a Hydracore 2000 mobile unit), which we expect to commission within the next six weeks. We are now compiling our results to-date for the purpose of an initial resource estimate.
Management believes that the Dynasty Goldfield has significant potential to host a large bulk-mineable gold resource.
About the Dynasty Copper-Gold Project: The Dynasty Copper-Gold Belt is a previously- unexplored mineralized corridor, approximately 90 km long and 20 km wide, in Loja Province, south-western Ecuador. To date, the Company has identified eight mineralized porphyry-style alteration zones within this corridor, each with associated vein swarms and stockworks. The project property covers 969.16 km2 and consists of fifty-two concessions at altitudes ranging from 600m to 1800m above sea level. The property is 100% owned and the Company has no work obligations or property payments with respect to it.
The Company has 22.1 million shares issued and outstanding (25.7 million shares fully-diluted). In December 2005, warrants to purchase 1.8 million shares of the Company at $1.50 each were exercised and we now have approximately $3.2 million cash in treasury to fund our planned exploration and development work.
Our recent share price of $2.75 gives the Company a total market capitalization of approximately $60 million Canadian with measured and indicated gold resources of approximately 1.7 million ounces and an inferred gold resource of approximately 2.1 million ounces.
I thank our shareholders for their support during our second full year of operation and look forward to another very active and successful year in 2006.
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.
For further information about the Company, please contact Murray Oliver at (604) 687-0888 Ext. 3 or email@example.com or visit the Company’s website at www.dynastymining.com.
Dynasty Metals & Mining Inc.
Robert Washer, President and CEO
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.