Dynasty Acquires Option On Zaruma Gold Project Royalty
Vancouver, BC, July 10, 2006 - Dynasty Metals & Mining Inc. (TSXV: DMM; the “Company”) reports that it has secured the right to buy back a 3% net smelter returns royalty (“NSR”) held by IAMGOLD Ecuador SA on 39 concessions (the “Concessions”) within the Company’s Zaruma Gold Project.
The Concessions cover approximately 80% of the total Zaruma Gold Project concession area and contain all of the project’s currently estimated resources. The NSR is the only royalty charge against the Concessions.
Under the agreement with IAMGOLD, the Company has the exclusive option to purchase one-half of the NSR within 18 months for US$1,000,000, and the balance of the NSR within 30 months for an additional US$5,000,000.
Robert Washer, the Company’s Chief Executive Officer, commented: “We are very pleased to have concluded this agreement. The potential financial benefit to the Company is significant and will be apparent with the publication, shortly, of the results of an independent preliminary economic assessment of the Zaruma Gold Project.”
In order to accommodate the Company’s plans to operate a pilot plant as part of its project feasibility work, IAMGOLD has also agreed to waive application of the NSR on the first 10,000 ounces of gold produced from the project over the next 18 months.
About the Zaruma Gold Project
The Zaruma Gold Project comprises 44 concessions, located in the El Oro Province of south western Ecuador, in the vicinity of the towns of Zaruma and Portovelo. Forty-three of the concessions are 100% owned. Title to the remaining concession is subject to future option payments. The concessions cover an area of 103 km2, over 95% of which has yet to be systematically explored.
Initial estimates of gold resources of the Zaruma Gold Project are contained in two independent reports, dated October 22, 2004, prepared by Miroslav Kalinaj MSc, and October 21, 2005, prepared by Allen J. Maynard BappSc, MAIG, MAusIMM. These estimates are summarized in the following table:
|Category||Tonnes||Au g/t||Au Ounces|
Dynasty Metals & Mining Inc. is a Canadian based mining company involved in the exploration and development of several mineral properties in Ecuador, of which the Zaruma Gold Project is one.
Dynasty Metals & Mining Inc.
Robert Washer, President and CEO
For further information about the Company, please contact Murray Oliver at (604) 687-0888 Ext. 3 or email@example.com or visit the Company’s website at www.dynastymining.com.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.