Dynasty Metals & Mining Provides Zaruma Gold Project Update - Underground Sampling Returns High-Grade Gold From New Vein Extension
Vancouver, B.C., June 12, 2007 - Dynasty Metals & Mining Inc. (TSXV: DMM, the “Company”) reports on progress in the development of its Zaruma Gold Project, El Oro Province, Ecuador.
The Company has taken delivery at the project site of ball mills, a jaw crusher, and sundry underground mining equipment and has started bulk sample testing at a pilot plant.
Separately, ongoing channel sampling of the newly discovered Tamayo Vein extension at Cabo de Hornos (Ana Michell concession) has identified additional near-surface high-grade gold mineralization. Highlights of new channel sampling of the Tamayo vein include 95.33 grams per tonne (“g/t”) gold over 2.50 metres, and 62.57 g/t gold over 1.5 metres.
Zaruma Gold Project Equipment
A major shipment of containers of equipment for the Zaruma processing plant has arrived in Ecuador. This is the first of several shipments of equipment purchased by the Company for the development of the Zaruma gold mine. Equipment received includes:
Marcy 12”-6” Diameter X 13’ Long Ball Mills
Allis Chalmers 36” X 48” Jaw Crusher
Tamrock EJC 100 underground loader
Low profile underground Scoop Loader
Low Profile underground Crane
EJC 100 Mucker (bogger)
Boar Feedleg Drill
Air Track Drill
A second shipment of equipment is due to leave Houston in the next few weeks. With these shipments, the Company remains on track to commence gold production at Zaruma in the first quarter 2008.
Pilot plant at Zaruma Gold Mine
A pilot plant has now been commissioned at the Zaruma project to process bulk samples of up to 20 tonnes of ore a day of ore that currently is being stockpiled from mine development activity. The plant consists of a cyanide circuit and an extraction circuit, with production through to gold bar. It will provide the Company with valuable information about grade and block control, as well as confirmation of vein metallurgy.
Construction and Underground Exploration at Zaruma
Work continues at Zaruma, with approximately 100 men working on underground exploration and the construction of the main access decline in the Ana Michell area. The underground exploration program is aimed at expanding veins and stockworks that are included in mine design forecasts and at indentifying new veins. Recent photographs of construction at Zaruma can be viewed on the Company’s website: www.dynastymining.com.
Recent sampling along the newly-discovered southern extension of the Tamayo vein in the Ana Michell decline has yielded some excellent results. Significant results from this sampling include the following:
Table 1: Significant Sampling - Ana Michell Area - Zaruma Gold Project - June 2007
This block is not included in the Zaruma project resource estimations announced by the Company on October 21, 2005 and its near-surface location will provide immediate access to high-grade ore for the Zaruma processing plant. The vein is open to the south and further results are expected shortly.
The Zaruma Gold Project
The Zaruma Gold Project is located in the cantons of Zaruma and Portovelo, Province of El Oro, Ecuador, approximately 160 kilometres south of Guayaquil, Ecuador’s main seaport. The project comprises 44 mineral concessions, covering approximately 103 square kilometres, in an active high-grade goldfield. Gold mineralization occurs in a 15 kilometre by 5 kilometre polymetallic epithermal precious metal vein system. An Independent Preliminary Assessment of the Zaruma project, announced by the Company on July 12, 2006, estimated a pre-tax undiscounted cash flow of US$467 million over a 14.5 year mine life from annual production of approximately 100,000 ounces of gold. The Company expects to commence production at Zaruma in the first quarter of 2008.
Ecuador Political Update
Further to its news release of May 25, 2007, the Company has been advised by senior federal government officials that remarks attributed to a government source suggesting changes to Ecuador’s foreign investment laws were not made in reference to the mining industry. The Company continues to enjoy a productive working relationship with the new federal administration and fully supports it in its stated goal of fostering the development of a mature, responsible mining industry in Ecuador.
Quality Control and Assurance
The preparation of the technical information contained in this news release was supervised by Pippa Jeffcock, a member of the Geological Society (London) and a “qualified person” as defined by National Instrument 43-101. Samples were sealed on the property and shipped to the BSI Inspectorate laboratory in Quito, Ecuador for preparation. Sample pulps were shipped by BSI Inspectorate to its laboratory in Lima, Peru for gold fire assay, silver and multi-element ICP analysis.
Dynasty Metals & Mining Inc. is a Canadian based mining company involved in the exploration and development of mineral properties in Ecuador. The Company has two advanced-stage projects, Jerusalem and Zaruma, 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
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.