THE ZARUMA GOLD PROJECT

   

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

The Company has filed a report titled "Independent Preliminary Assessment, Zaruma Project, El Oro Province, Ecuador" on the Zaruma Gold Project, dated August 21, 2006 (the "Zaruma Report"), prepared by W. J. Holly, MAustIMM FFin and A. J. Maynard MAIG MAusIMM, each of whom is "independent" and a "qualified person" as defined in NI 43-101. Unless stated otherwise, information on this website of a scientific or technical nature regarding the Zaruma Gold 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 www.sedar.com.

Please note that the Zaruma Report referred contains a preliminary economic assessment that was based on economic factors that are no longer reflective of current market conditions. The Company therefore advises readers not to rely on such preliminary economic assessment.

As a result of recent mine development activities and operations relating to the Zaruma Project, the Company is in the process of preparing an updated Technical Report to support new scientific and technical information in respect thereof including a re-evaluation of the mineral resource estimate. The Company expects to have an updated NI 43-101 compliant Technical Report completed on the Zaruma Project on or before March 28, 2014. The Zaruma Report contains a preliminary economic assessment that was based on economic factors that are no longer reflective of current market and operating conditions. The Company therefore advises readers not to rely on such preliminary economic assessment. Although the mineral resource estimate contained in the Zaruma Report is being re-evaluated by the Company, the Company is unaware of any circumstances since the filing of the Zaruma Report that would result in a material change to the mineral resource estimate contained therein. However, the Company informs readers that the Zaruma Report is not presently compliant with the requirements of NI 43-101 and the mineral resource estimate contained therein should not be relied upon until supported by an updated NI 43-101 Technical Report.

(see PRODUCTION PLANT PROGRESS & PHOTOS)


Key Highlights:

  • The construction of the Zaruma Gold Plant has been completed and is in intermittent operation
  • Mine development is in progress
  • Measured and Indicated Gold resource of 1,110,200 oz at an average grade of 13.93 g/t
  • Inferred Gold resource of 1,383,400 oz at an average grade of 12.72 g/t
  • Previous exploration on the field includes over 100,000 channel samples, 15,000 metres of drilling and over 1,705 line kms of aeromagnetic data
  • Historic production in Zaruma District estimated to be 5 million oz of Gold and 12 million oz of Silver
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.

Historical work compiled by IAMGOLD Ecuador S.A. ("IAMGOLD") includes over 100,000 channel sample data points, 41,643 m of underground drift mapping, approximately 15,000 m of diamond core drilling and 5,412 soil samples. The Company acquired the data compiled by IAMGOLD as part of its purchase of the concessions.

TOTAL MINERAL RESOURCES CONTAINED IN ZARUMA PROJECT
(INCLUDING THE PORTOVELO AREA)

Category Tonnes Au g/t Au Ounces
Measured 1,568,000 13.93 702,100
Indicated 915,000 13.87 408,100
Inferred 3,382,000 12.72 1,383,400



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 Company Director and a "Qualified Person" within the definition of that term in the 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.