In an update report, Dodd has advised the Company that "the favourable mineralogy of the resource has resulted in a compact plant with high flexibility and a significantly higher recovery than was initially expected."
Separately, Bill Blake, a mining engineer with 26 years of experience, has joined the Company as Mine Manager of the proposed Zaruma gold mine. In that capacity, he will have primary responsibility for mine operations.
Zaruma Plant Design Update
Dodd's update report to the Company advises that, as a result of process design improvements suggested by laboratory and metallurgical testwork, overall gold recovery across the entire Zaruma plant is expected to increase from 87%, previously estimated to yield annual gold production of approximately 100,000 ounces, to more than 92%.
Independent Metallurgical Laboratories Pty Ltd ("IML"), also based in Perth, conducted all laboratory and metallurgical testwork on which the Dodd design work is based. The testwork showed that the introduction of a flotation circuit after the secondary mill discharge cyclone achieved a 50% higher gold recovery than that achieved using a gravity separator, and reduced the mass flow to the leach circuit by 85%.
As a result, the size of the proposed leach plant has been reduced to one tenth of that originally envisaged - thereby reducing the overall size of the plant and budgeted capital expenditures.
Zaruma Construction Update
Work continues on the main decline at the Ana Michele (Cabo de Hornos) site. The four metre by four metre portal is finished and reinforced by earthworks. An adjacent pad has been completed to position the future mine compressor and substation and for decline access to the new underground workings.
The ground in the decline appears to be competent and predictable and should permit the rapid and safe advancement of the decline.
In other developments at Zaruma:
- The explosives magazine at the Barbasco decline site has been completed on schedule and has received the required official certification.
- The small Zaruma pilot plant is working to specification, processing an average of 20 tonnes of ore per day.
- In addition to equipment already on the Barbasco site (as announced June 12, 2007), two Jumbo underground drills are expected in two weeks, with further equipment to arrive as mining operations expand.
- In a visit to the Zaruma mill site at the end of June, Dodd established the site positioning of the proposed crushing, milling and security facilities.
- The latest equipment arrivals for the Zaruma plant include another Harding ball mill and the jaw crusher for the secondary crushing circuit.
Bill Blake is an Australian with 26 years of experience in mining. He has held positions at mines worldwide as mine manager, underground manager, foreman, and seventeen years as underground shift supervisor. Progressing through the ranks, he has operated virtually every type of mining equipment, with experience ranging from large-scale bulk mining to years in narrow-vein mining.
Mr. Blake has had extensive experience training local mine staff in mines in Indonesia, Ghana, and Western Australia. In assuming the position of Mine Manager at Zaruma, he will be responsible for establishing and maintaining a world-class standard of operations, not previously seen in Ecuador.
About the Zaruma Gold Project
The Zaruma Gold Project is located in the cantons of Zaruma and Portovelo, Province of El Oro, Ecuador, approximately 160 kilometres south of Guayaquil, Ecuador's main seaport. The project comprises 44 mineral concessions, covering approximately 103 square kilometres, in an active high-grade goldfield. Gold mineralization occurs in a 15 kilometre by 5 kilometre polymetallic epithermal precious metal vein system.
An Independent Preliminary Assessment of the Zaruma project, announced by the Company on July 12, 2006, estimated a pre-tax undiscounted cash flow of US$467 million over a 14.5 year mine life from annual production of approximately 100,000 ounces of gold. The Company expects to commence production at Zaruma in the first quarter of 2008.
Quality Control and Assurance
The preparation of the technical information contained in this news release was supervised by Pippa Jeffcock, a member of the Geological Society (London) and a "qualified person" as defined by National Instrument 43-101.
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. The Company is debt-free, with approximately 28 million shares outstanding and $14 million in cash.
The Company has two advanced-stage projects, Jerusalem and Zaruma, and a highly prospective exploration project, the Dynasty Copper-Gold Belt, which includes the Dynasty Goldfield, the Copper Duke Project and the Macara Joint Venture, among other prospects.
The Company's common shares are currently listed for trading on Tier 1 of the TSX Venture Exchange under the symbol "DMM", and have been conditionally approved for listing on the senior Toronto Stock Exchange.
Dynasty Metals & Mining Inc.
Robert Washer, President and CEO
For further information please visit the Company's website at www.dynastymining.com, or
|Dynasty Metals & Mining Inc.|
Tel: (604) 687-0888
|Brisco Capital Partners Corp.|
Tel: (403) 262-9888
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
This news release includes "forward-looking information", as such term is defined in applicable securities laws. The forward-looking information includes, without limitation, statements relating to the economic feasibility of, and the nature and timing of mine construction and mining operations at, the Company's Zaruma Gold Project; and other similar statements concerning anticipated future events, conditions or results that are not historical facts. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward-looking information is inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among others, risks and uncertainties relating to exploration and development; the ability of the Company to obtain additional financing; the Company's limited operating history; the need to comply with environmental and governmental regulations; political and economic instability and general civil unrest in Ecuador; potential defects in title to the Company's properties; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; competition; and other risks and uncertainties, including those described in the Company's Annual Information Form dated February 19, 2007 filed with the Canadian Securities Administrators and available at www.sedar.com. Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and the Company is under no obligation to update or alter any forward-looking information.