Dynacor Gold Mines Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2014 and Production Results for the Second Quarter Ended June 30, 2014
Aug 11 14
Dynacor Gold Mines Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. For the quarter, the company has posted sales of $26,781,000 against $25,870,000 a year ago. Operating income was $3,170,000 against $2,291,000 a year ago. Net income and comprehensive income was $2,051,000 or $0.05 per diluted share against $941,000 or $0.02 per diluted share a year ago. EBITDA was $3,521,000 against $2,382,000 a year ago. Cash flow from operating activities was $3,796,000 against $6,881,000 a year ago. Additions to exploration and evaluation assets amounted to $0.5 million in second quarter of 2014 against $0.8 million in second quarter of 2013 and consisted in the start of the improvement work of the Tumipampa 26 km access road, building of enhance camp facilities on site, geophysical study, sampling and analysis, advance to suppliers, exploration salaries and other exploration expenses at Tumipampa. The growth in net income was attributed to an increase in gross operating margin and a decrease in foreign exchange losses and income tax expenses.
For the six months, the company has posted sales of $39,085,000 against $59,212,000 a year ago. Operating income was $4,723,000 against $6,577,000 a year ago. Net income was $2,910,000 or $0.07 per diluted share against $3,919,000 or $0.10 per diluted share a year ago. EBITDA was $5,354,000 against $6,998,000 a year ago. Cash flow from operating activities was $5,049,000 against $10,721,000 a year ago.
In second quarter of 2014, the Huanca plant processed 16,830 DMT of ore compared to 18,785 DMT in second quarter of 2013 a decrease of 10.4%. Despite this reduced throughput, Dynacor managed to produce a similar volume of gold, with a production of 17,608 ounces compared to 17,893 ounces in second quarter of 2013, a slight decrease of 1.6% mitigated by the increase grade of ore processed. Sales rebounded to 20,521oz in the quarter from 17,808oz.
Dynacor Gold Mines Inc. Announces the First Results of an Ongoing Channel Sampling Campaign at Tumipampa Property
Aug 8 14
Dynacor Gold Mines Inc. announced the first results of an ongoing channel sampling campaign that is targeting an area of the Tumipampa property where disseminated gold mineralization has been recently reported associated with brecciated quartz rock with iron and sulfide mineral inclusions. Three rock chip samples and 36 channel samples were analyzed and one channel sample graded 19.49 g/t Au and 0.35 oz/t Ag. Exploration results: In 2014, Dynacor intends to intensify the exploration of an area of the Tumipampa property where disseminated gold mineralization has been found and where only two exploratory drill holes have been drilled to date. Drill hole HDD-09-13 intersected a grade of 0.402 g/t over 15.05 meters and drill hole HDD-10-13 intersected a grade of 0.15 g/t Au over 18 meters. The company has identified 4 large brecciated quartz structures on the Tumipampa property located approximately 2000 meters to the southwest of the Manto Dorado structure and 1000 meters south of Zone IV of the Skarn. Thirty six channel samples and 3 rock chip samples from brecciated quartz rock are reported here which are part of an extensive 500+ sample campaign that will be carried out during 2014-2015 in order to better understand the geochemistry and geology of this area and define new drilling targets. Of the 36 channel samples 16 (44.4%) had anomalous gold grades (>0.05 g/t - 10 times the background value) with values ranging from 0.054 to 19.49 g/t Au and 5 samples (13.9%) had gold grades greater than 1.0 g/t Au. The channel samples that had anomalous gold values were associated with brecciated quartz rocks with veinlets of iron oxide and pyrite minerals. The three (3) rock chip samples did not return any significant values. The samples were sent to the internationally certified laboratory Certimin S.A. for analysis. Samples were assayed by ICP analysis and for assays greater than 10 g/t Au a gravimetric FAA finish assay is used. Standards, blanks and duplicates are used in the sampling process as part of the QA/QC for all samples. The program, sampling, collection of samples and the QA/QC methodology is implemented and followed by Alonso Sanchez, Chief Geologist for Dynacor Gold Mines, B.Eng. and QP under the American Institute of Professional Geologists (AIPG). Exploration Outlook: Dynacor has also completed a geophysical survey (IP & Magnetics) of the disseminated gold area and the results of this study will be released shortly as soon as the Company's geologists have finished the interpretation of these results and defined new drilling targets. In 2014-2015, the company is planning to invest approximately $4.5 million in its Tumipampa property, including the following exploration targets and infrastructure projects: Exploration: Geochemical sampling (more than 500 samples) of the disseminated gold mineralized area (underway); Geophysical study (IP & Magnetics) of the disseminated gold mineralized area on 12 km2 (done - results to be published shortly); Excavation of a 420-meter extension of the cross-cut towards the Rosa, A and Tumi veins; Underground drilling from the extended cross-cut (12 holes - 2000 meters in total); Surface drilling targeting disseminated gold targets (5 holes - 1800 meters in total).