The current focus of the Company's mining activities is the Zaruma Gold Project.

The Company has filed a report entitled "Independent Preliminary Assessment - Zaruma Gold Project - El Oro Province - Ecuador" (the "Zaruma Report") dated September 17, 2014, which contains a Preliminary Economic Assessment ("PEA") based upon an updated mineral resource estimate on its Zaruma Gold Project (the "Zaruma Project"). The Technical Report was prepared by Consulting Mining Engineer Mr RL Procter BSc (Eng), MBA, MIMMM, CEng, and Consulting Geologists Mr AJ Maynard, BAppSc (Geol) MAIG, MAusIMM and Mr PA Jones, BAppSc (Geol), MAIG, all of whom are independent "qualified persons" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). Unless stated otherwise, information on this website of a scientific or technical nature regarding the Zaruma Project is summarized, derived or extracted from the Zaruma Report. For a complete description of assumptions, qualifications and procedures associated with the information in the Zaruma Report, reference should be made to the full text of the Zaruma Report, which is available for review on SEDAR at and technical reports.


Key Highlights:

  • The construction of the Zaruma Gold Plant has been completed and is in intermittent operation
  • Mine development has advanced so that the Zaruma Gold Project in in commercial production
  • Measured and Indicated Gold resource of 1,094,000 oz at an average grade of 13.01 g/t
  • Inferred Gold resource of 1,448,000 oz at an average grade of 12.16 g/t
  • Base Case PEA for the Zaruma Gold Project estimate:
    • a 15 year mine life
    • total operating revenue of $1,460 million
    • total EBITA of $683 million
    • net after tax cash flow of $441 million
    • after tax Net Present Value of $218 million

The Zaruma-Portovelo Mining District is a major, high-grade goldfield, having produced over 5 million 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.

Estimated mineral resources at the Zaruma Project as contained in the Zaruma Report are as follows:


Measured Indicated Inferred
Location Tonnes
Au (g/t)
Au (Ozs)
Grade Au
Au (Ozs)
Au (g/t)
Au (Ozs)
Cabo de Hornos 1.30 13.99 585,000 0.86 12.46 343,000 3.0 12.30 1,201,000
Barbasco 0.19 11.05 66,000 0.09 10.81 33,000 0.3 12.13 128,000
Ayapamba 0.07 12.64 30,000 0.06 11.63 23,000 0.2 12.40 96,000
Vizcaya 0.03 8.40 8,000 0.02 8.40 6,000 0.1 8.40 23,000
Total 1.59 13.48 689,000 1.03 12.18 405,000 3.7 12.2 1,448,000

  - Mineral Resources that are not Mineral Reserves have not demonstrated economic viability.
  - A cut-off grade of 2.06 was used to derive the Mineral Resource estimate.


  Unit Value
Gold Price Used $/oz Au 1,300
Gold Recovered1 Au (oz) 1,081,108
Total Mined Resources (undiluted)1    
    - Measured + Indicated tonnes 2,590,000
    - Inferred tonnes 935,000
Operating Revenue $M 1,459.5
Operating Cash Flow (EBITDA) $M 682.5
Net Cash Flow (untaxed) $M 653.4
Net Cash Flow (taxed) $M 440.9
NPV2 (untaxed) $M 321.6
NPV2 (taxed) $M 218.2
Unit Operating Cost (untaxed) $/oz Au 658
Unit Operating Cost (taxed) $/oz Au 855

1) It is assumed that 100% of the measured and indicated resource and 25 % of the inferred resource is mined.
2) At 10% base case discount rate

As required by NI 43-101, it should be noted that these evaluations are preliminary in nature and that the Inferred Mineral Resources in particular are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. As such there is no certainty that the PEA will be realised.

Zaruma Gold Plant

The preparation of all technical information contained on this website relating to the Company's properties has been supervised by Brian Speechly, a Fellow of AUSIMM (Australian Institute of Mining and Metallurgy), a Director of the company and a "Qualified Person" within the definition of that term in National Instrument 43-101.

Readers are cautioned that any statements made as to potential quantities and grades on this website are not indicative of an economic mining operation at present.

Samples are sealed on the property and shipped to the BSI Inspectorate laboratory in Lima, Peru for preparation and gold fire assay. Sample pulps are shipped by BSI Inspectorate to its laboratory in Reno, Nevada for silver and multi-element ICP analysis.