Vancouver, BC, June 8, 2009 - Dynasty Metals & Mining Inc. (TSX: DMM, "Dynasty" or the "Company") is pleased to announce that it has successfully commissioned the crushing and milling sections of the gold processing plant at its Zaruma Gold Project, in the El Oro Province of south-western Ecuador. Dynasty expects to commence production in the next few weeks.
The Company continues the construction of three declines and exploration work to identify sites for new declines to allow for future expansion of mining activities. Dynasty expects to be able to process approximately 400 tonnes of ore per day by the end of June, increasing to the equivalent of 300,000 tonnes per annum during the third quarter of this year. Upon reaching this steady state, the Company will work towards expanding ore extraction to optimize plant capacity. The material mined during the construction phase of construction of the declines is expected to be of lower average grade. The average grade will increase as we move nearer to our primary targeted resources which reside at slightly deeper levels.
All mine development activities are now fully underway and the Company has purchased the substantial majority of required equipment which is either at the mine site or in-transit to Ecuador, including eight Jumbo's, six 5 and 6 yard underground loaders, eight 2.5 and 1 yard underground loaders, two 725Cat Haul Trucks, two 950Cat Loaders, one 966Cat Loader, three 953Cat Track Loaders, two 420Cat Backhoes, one 20 tonne excavator, two electric drills, five telehandlers and one shotcrete machine. In addition the Company has contracted out other necessary services such as transportation.
The slight delay from Dynasty's previously estimated development schedule is primarily due to the Ecuador government mandated suspension of mining activities. The suspension, which was recently lifted, created unforeseen restart challenges and caused delays in sourcing and importing certain mining equipment.
The Company currently has net working capital of approximately $16 million.
The Ecuador government has indicated to the Company that the regulations under which the Mining Law will be governed are due to be released in the near future. Dynasty has been advised that the regulations will assist in setting out the framework of exploitation contracts. Dynasty continues to work closely with government officials and regularly apprise them of its progress and plans with respect to the Zaruma Gold Project. The Company has not received any indication that such plans are at risk as a result of probable government intervention or policy.
Last week it was reported that the Ecuadorian government signed a cooperation agreement on mining exploration and development with Codelco, the copper mining company owned by the Chilean government. We view this as a positive step toward developing the mining industry in Ecuador.
In other developments:
- the Company has registered its projects with the new National Water Authority and submitted updated Environmental Impact Studies to the Ministry of Mines and Petroleum as required under the new Mining Law;
- we have been advised by the Ministry of Mines & Petroleum that once the regulations to the Mining Law have been released they will resume processing permit applications, including the mine and plant operation permits the Company has submitted for the Jerusalem Project; and
- the Company has now made the decision to ship two previously purchased diamond drills, which were being stored in Canada, down to Ecuador. This will bring the total number of drills the Company owns in Ecuador to four. The drills will be used at Zaruma to assist in identifying locations to develop future declines and to recommence exploration activities at other projects in the future.
Photographs of the Zaruma Gold Project will continue to be updated and are available on the Company's website at www.dynastymining.com.
Julian McDermott, a member of AUSIMM (Australian Institute of Mining and Metallurgy) and a "qualified person" within the definition of that term in National Instrument 43-101, has supervised the preparation of the technical information contained in this news release.
About Dynasty Metals & Mining
Dynasty Metals & Mining Inc. is a Canadian based mining company involved in the exploration and development of mineral properties in Ecuador.
The Company has the near production Zaruma Gold Project, the advanced-stage Jerusalem Project, and a highly prospective exploration project, the Dynasty Copper-Gold Belt, which includes the Dynasty Goldfield.
Dynasty Metals & Mining Inc.
Robert Washer, President and CEO
For further information please visit the Company's website at www.dynastymining.com, or please contact:
|Dynasty Metals & Mining Inc.|
Tel: (604) 687-0888
|Brisco Capital Partners Corp.|
Tel: (403) 262-9888
This news release includes "forward-looking information", as such term is defined in applicable securities laws. Users of forward-looking information are cautioned that actual results may vary from forward-looking information contained herein. The forward-looking information includes, without limitation, the anticipated dates that the different phases of commissioning will be completed, the amount and grade of material that the Company plans to process, the timing and ability of the Company to mine and deliver material to the processing plant, the anticipated date of commencement of production, statements regarding the new regulations to the Mining Law and other similar statements concerning anticipated future events, conditions or results that are not historical facts. In certain cases, forward-looking information was developed using the material factors or assumptions stated herein. Such factors and assumptions include, amongst others, the effects of general economic conditions, the price of gold, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations and misjudgements in the course of preparing forward-looking information. In addition, there are also known and unknown risk factors which could cause the Company's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Known risk 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; uncertain mining legislation; 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 March 25, 2009 filed with the Canadian Securities Administrators and available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward looking information, will prove to be accurate. Accordingly, readers should not place undue reliance on 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 except as required by law.