Dynasty To Spin-Off Copper Duke Gold/Copper Project
Vancouver, B.C., May 22, 2007 - Dynasty Metals & Mining Inc. (TSXV: DMM, the “Company” or “Dynasty”) has agreed, subject to regulatory approval, to sell the core concessions of its Copper Duke gold/copper project (the “Copper Duke project”) to SBI Skin Biology Incorporated (“SBI”), a publicly-traded company listed on the TSX Venture Exchange’s NEX Board.
The Copper Duke project lies within the Company’s extensive Dynasty Copper Gold Belt, in Ecuador, approximately 25 km east of the Dynasty Goldfield. The transaction will form the basis for SBI’s reactivation from the NEX Board, and is contingent upon SBI securing a listing as a TSXV “Tier 2” issuer.
SBI will issue the Company 51 million common shares, raise $6 million to continue exploration on the project, and pay the Company a 2% net smelter returns royalty on all minerals extracted from it. Haywood Securities Inc. has agreed to act as agent to SBI, on a best efforts basis, in respect of a private placement of 10 million common shares at a price of $0.60 per share. Upon closing and following the required financing, the Company will own approximately 60% of the issued and outstanding shares of SBI.
Ian Telfer, Chairman of Goldcorp Inc., advised SBI in respect of this transaction and will advise on the continuing development of the company.
Mr. Telfer commented: “The Copper Duke project is by far the most exciting of a number of projects that I reviewed at the request of the SBI Board, following their decision to take the company into mineral exploration. I am very pleased to have been able to assist in securing it for SBI and look forward to working with management.
“Rob Washer, Dynasty’s President, and his technical team are among the most experienced operators in Ecuador. They have demonstrated their ability to find and develop both grass-roots and advanced gold projects and enjoy an excellent relationship with the relevant Ecuadorian governmental agencies.”
Company President, Rob Washer, commented: “Copper Duke has the potential to be a world-class epithermal gold deposit, with the added upside of a significant copper porphyry component. This transaction offers Dynasty the ability to fast-track its exploration and, in the process unlock its value on our balance sheet. I am looking forward to working with Ian as we move ahead.”
Under the agreement with SBI, the Company will have the right to participate pro rata to its percentage interest in any new issuances of securities by SBI; a right of first refusal to process and mill all minerals extracted from Copper Duke; and a right of first refusal should SBI wish to dispose of any of its interest in the property.
The Company has agreed to act as operator of the future exploration of Copper Duke and will have equal representation on a management committee to be formed to oversee exploration and development operations. The Company will have the right to nominate a majority of the SBI Board of Directors.
Company Update Conference Call
A conference call and live audio webcast is scheduled for 2:00 p.m. EST, Wednesday, May 23, 2007. If you wish to participate, in North America (outside of Toronto) please dial toll free 1-866-585-6398, or 416-849-9626 for Toronto area and international calls. A link to the live and archived audio webcast will be available on the Company’s website at www.dynastymining.com.
After a brief presentation, registered brokers, analysts, media and accredited investors will be invited to ask questions. Participants may also submit questions prior to the call via email to firstname.lastname@example.org.
About Copper Duke
The Copper Duke project consists of 11 mineral concessions covering a number of gold and copper porphyry occurrences in an area of approximately 100 sq. km. The project is located in Catacocha (Paltas) county, Province of Loja, approximately 60 km south-west of La Toma, the nearest commercial airport.
To date, a major copper-gold porphyry complex, El Huato, and an additional four porphyry copper systems and two gold targets have been identified. Of the porphyry copper systems, Loma Redonda is currently being explored, while three others, Rio Catamayo, Landaluma and Barbasco are at the prospecting stage. Both of the gold targets, Ningomine and El Palton, are being actively explored.
The El Huato copper-gold porphyry complex was discovered by a United Nations survey in 1968. It comprises volcano-sedimentary rocks overlying other intrusives. Sub-vertical to sub-horizontal veining and stockworks follow the stratification of these sediments striking southwest and southeast for a known length of 3.5 km.
The complex comprises a central high-grade gold porphyry and a southern high-grade copper-gold porphyry. There are also indications of high-grade copper and gold to the north of the area. In 1978, Adaro, a Spanish government company, drilled two holes into the central gold porphyry that returned, respectively, 62.75 metres grading 1.73 g/t gold and 44.7 metres of 2.23 g/t gold.
In its October 6, 2006 news release, the Company reported significant assays from 481 rock chip channel samples taken from epithermal vein swarms and stockworks located in an 8.5 sq. km area in the central sector of the Huato area. Results indicated the presence of widespread high-grade gold mineralization, ranging from 174 grams per tonne (“g/t”) gold to 0.1 g/t gold and from 249 g/t silver to 0.1 g/t silver.
The sampled structure subsequently has been confirmed by a geophysical survey and results from 220 rock chip channel samples taken in the area since January of this year have been consistent with those previously reported. 73 of the new samples returned assay values in excess of 1 g/t gold with 36 samples returning values in excess of 3 g/t gold, over widths varying from 4 metres to 0.1 metre, to a maximum of 61.5 g/t gold over 3.9 metres. The structure is considered to be a prime drill target for a large-scale gold stockwork.
Sampling this year has also focused on the southern portion of the Huato complex - most notably on an area where a copper-rich porphyry, cut by breccia dykes, has been discovered. Mineralization in this porphyry is disseminated in the sub-volcanic host rock. Channel sampling has been conducted in trenches, along outcropping veins, and across other outcropping mineralization. Trench sampling has returned values of up to 2.9% copper over 15 metres.
Latest results are tabulated below. Results are shown as averages over the length of trenches (Table 1) and veins (Table 2), and as single rock samples from outcrop (Table 3).
Table 1: Southern El Huato - Trenches containing Copper
D1503305-09 & D0903185-192
Table 2: Southern El Huato - Average Values over Length of Copper/Gold Veins
Table 3: Southern El Huato - Rock Samples Containing Copper
Ningomine and Loma Redonda
These new areas, situated north and southwest of El Huato, respectively, were discovered by Dynasty geologists prospecting in the Copper Duke area. They contain quartz veins associated with granodioritic dykes with moderate silicification and serecitization. Malachite is found disseminated in granodioritic rocks.
On February 8, 2007, the Company reported assays results from 113 samples, taken predominantly from a 1.5 sq. km area in Ningomine, three kilometres to the north of El Huato, and from a 2.5 sq. km area in Loma Redonda, four kilometres to the southwest of El Huato. Significant results ranged from 17 g/t gold to 0.1 g/t gold and from 727 g/t silver to 0.1 g/t silver, over widths of 2.0 metres to 0.2 metres.
Since January, a total of 20 additional channel samples have been taken from Loma Redonda, of which half returned assay values in excess of 1% copper, to a maximum of 15% copper.
Rio Catamayo lies south of El Huato along the same mineralized trend and was discovered by Dynasty geologists doing geological traverses through the area. Small porphyritic dykes outcrop along the river Catamayo. These dykes commonly contain stockworks of quartz veins and hydrothermal brecciation with argilic alteration and local silica with copper carbonate, pyrite, chalcopyrite and iron and copper oxides. Geochemical sampling produced values of up to 2.15 g/t gold and 1.33% copper over 18 metres of continuous sampling.
El Palton was discovered in February of this year by Dynasty geologists working to the west of El Huato. This gold target contains highly oxidized and leached quartz-magnetite veins with wide zones of argilic alteration with brecciated texture. The veins and veinlets are found in porphyry dykes with quartz lenses up to 8 metres wide, in a parallel formation with local stockworks of very fine veins and massive stibnite. The wall rock is predominantly propilitized granite. Geochemical sampling of the area produced values of 10.13 g/t gold over 0.5 metres and 19.07 g/t gold over 0.3 metres.
Quality Control and Assurance
The preparation of the technical information contained in this news release was supervised by the Company’s Exploration Manager, Pippa Jeffcock, a fellow 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.
While the Company has no reason to doubt the accuracy of the historical results reported in this news release, it can provide no assurance as to the accuracy of any such results that are not expressly stated to have been confirmed by its own exploration.
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. Its common shares are listed for trading on Tier 1 of the TSX Venture Exchange under the symbol “DMM”.
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 and Copper Duke.
Dynasty Metals & Mining Inc.
Robert Washer, President and CEO
For further information, please contact Murray Oliver at (604) 687-0888 or email@example.com or visit the Company’s website atwww.dynastymining.com.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release