Dynasty Plans To Commission Gold Plant By The End Of March 2009
Vancouver, BC, December 17, 2008 - Dynasty Metals & Mining Inc. (TSX: DMM, “Dynasty” or the “Company”) has nearly completed plant construction at its Zaruma Gold Project in Ecuador.
Company President, Rob Washer, commented: “President Correa and other senior Mining Ministry representatives continue to express publicly and privately their support for “large scale environmentally responsible” mining in Ecuador. After months of direct consultation with government and industry officials regarding the Mining Mandate and draft amendments to the Mining Act, we concluded we should complete construction so that we may commission the gold plant at Zaruma as soon as practicable. We are presently planning for the end of March 2009.
Initially, we plan to process 300,000 tonnes of ore to produce approximately 100,000 ounces of gold annually. The installed capacity of the plant, except for the wet section, will be approximately 800,000 tonnes, allowing for significant expansion without additional significant capital cost after we reach steady state production.
The Company presently has sufficient cash resources to complete all requisite plant and mine construction.”
Recently updated photographs of the Zaruma Gold Project are available on the Company’s website at www.dynastymining.com.
Separately, Dynasty announces that it has entered into an agreement with IAMGOLD Ecuador S.A. (“IAMGOLD”) to extend by six months the option period during which Dynasty may purchase the remaining 1½% Net Smelter Returns Royalty (“NSR Royalty”) on certain concessions at the Company’s Zaruma Gold Project that were acquired from IAMGOLD in 2004. Dynasty will now have until June 30, 2009 to exercise the option.
In December 2007, the Company exercised its first option to purchase one-half of the original 3% NSR Royalty for US$1 million. The exercise price to purchase the remaining 1½% NSR Royalty remains unchanged at US$5 million.
Company President, Rob Washer, further commented “I would like to thank IAMGOLD for their agreement to extend the option period.”
About 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 Guayquil, Ecuador’s main seaport.
Zaruma gold resources were estimated by Allen J. Maynard, BAppSc(Geol), MAIG, MAusIMM, an independent “qualified person” as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”), as follows:
Mr. Maynard’s report, dated October 21, 2005, has been filed on SEDAR and is available for viewing at www.sedar.com.
The highlights of an Independent Preliminary Assessment of the Zaruma Gold Project prepared by W.J. Holly, MAustIMM FFin, an independent “qualified person” as defined by NI 43-101, which was based on Mr. Maynard’s gold resources estimate, are as follows:
Estimated Mine Life Over Two Stages
Annual Production (net of 15% dilution)
250,000 tonnes/100,000 oz. gold
Payback Period at $500 / oz. Gold
Operating Cost per Gold Ounce
US$181(unadjusted for inflation)
As required by NI 43-101, it should be noted these estimates are preliminary, and they include inferred gold resources that 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 estimates contained in the Independent Preliminary Assessment will be realized. Readers are also cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mr. Holly’s report, dated August 21, 2006, has been filed on SEDAR and is available for viewing at www.sedar.com.
About Dynasty Metals & Mining
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, Zaruma and Jerusalem, as well as 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
Michel Rowland, a member of AUSIMM (Australian Institute of Mining and Metallurgy) and a “qualified person” as defined by NI 43-101, is responsible for the technical information contained in this news release.
This news release includes “forward-looking information”, as such term is defined in applicable securities laws. Users of forward-looking information are cautioned that actual results may vary from forward-looking information contained herein. The forward-looking information includes, without limitation, the success of exploration activities, the projected costs and completion date of the Zaruma plant and mine, statements regarding amendments to Ecuador’s Mining Act, statements regarding the political climate in Ecuador, future production from and profitability of the Zaruma plant and mine and other similar statements concerning anticipated future events, conditions or results that are not historical facts. In certain cases, forward-looking information was developed using the material factors or assumptions stated herein. However, there are known and unknown risk factors which could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Known risk factors include, among others, risks and uncertainties relating to exploration and development; the ability of the Company to obtain additional financing; the Company’s limited operating history; the need to comply with environmental and governmental regulations; political and economic instability and general civil unrest in Ecuador; potential defects in title to the Company’s properties; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; competition; and other risks and uncertainties, including those described in the Company’s Annual Information Form dated March 26, 2008 filed with the Canadian Securities Administrators and available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward looking information, will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking information. All statements are made as of the date of this news release and the Company is under no obligation to update or alter any forward-looking information except as required by law.