Zaruma Gold Project Development Update
Vancouver, B.C., January 29, 2007 - Dynasty Metals & Mining Inc. (TSXV: DMM, the “Company”) is pleased to issue this update on the development of its Zaruma Gold Project.
- Permitting for plant construction has been received from the Municipal Government of Portovelo (including all requisite zoning for the plant site, tailings dams and mine entrances).
- An environmental impact study has been submitted and is under review by the Ministry of Mines and Energy. The resulting operating permit is expected to be issued before the end of March.
- Heavy machinery for the plant, including ball mills and jaw crushers, has been purchased and is expected to arrive by the end of February.
- Work has commenced on the main decline at Ana Michele in Zaruma.
- Construction of two tailings dams is complete.
- Underground exploration aimed at developing and expanding the geological information used in the mine plan is continuing with further positive results from development sampling.
The Company has received many enquiries from shareholders about the potential impact of the new Ecuadorian government upon the mining industry, in general, and upon the Company, in particular. Although the government is still in the early days of establishing and implementing policy and the necessary infrastructure, the Company’s discussions with representatives of the new administration and persons close to it have given considerable comfort that it intends to support the continued development and modernization of the mining industry. It should be noted that all of the Company’s projects are progressing rapidly and without delays, and that the Company continues to work closely and enjoy a good relationship with all local and federal agencies.
On January 7, 2007, the Municipal government of the Canton of Portovelo issued a formal permit for the construction of the Company’s proposed processing plant at Zaruma. The permit included all requisite zoning for the project. Zaruma is an active mining district, with several informal and small-scale mining operations. No material objections were raised regarding our plans to develop a modern mining facility and hire local workers. Environmental Impact Study A public presentation of the Company’s Environmental Impact Study (“EIS”) for its Zaruma mining operation has received support from the Zaruma County Chamber of Mining, the Portovelo Chamber of Small Miners, the Portovelo County Chamber of Mining, and the offices of the Mayor of both Portovelo and Zaruma.
The EIS has been presented to the Ecuadorian Ministry of Energy and Mines and the Company expects to receive project approval from the Ministry by the end of March, 2007.
Purchase of Machinery
To date, the Company has purchased the following equipment for the proposed Zaruma mining operation:
12ft diameter x 13ft 1500HP Marcy Ball Mills
10ft diameter x 12ft 750 Hardinge Ball Mill
Equipment for 1000ft of conveyors
Earth moving equipment
Underground mining equipment
The Company has also purchased many of the consumables required for the operation. All of this machinery has been now been shipped, with 18 containers now arrived on site. The rest of this equipment is expected by the end of February, 2007.
Ana Michele Main Decline
The Company has commenced construction of the Ana Michele main decline at the Zaruma Gold Project, with a crew of approximately 100 now on site.
The Ana Michele main decline is one of five planned declines for the Zaruma project. It is designed to intersect the Tamayo, East Tamayo and Matalanga veins, so as to permit production rates of 600 tonnes of high-grade ore per day. The four metres by four metres, spiral tunnel will allow access to underground ore resources by heavy machinery. Stockpiling of ore from the mine will commence about two months into construction of the decline.
Construction of the Sucre decline, to the north of Ana Michele, is planned to commence next, in approximately three months.
Company President, Robert Washer commented: “Starting the main decline at Zaruma is a significant milestone on our path to producing gold from the project. We expect to have both the Ana Michele and the Sucre declines sufficiently developed to permit us to produce up to 850 tonnes of ore per day, within 12 months - a projected annual production rate of 300,000 tonnes.”
Tailings Dams - Infrastructure
The Company has completed the construction of two tailings dams at Zaruma, with an initial capacity of 120,000 cubic metres. Thirty hectares of land have been purchased on which to build the treatment plant and camp facilities. An access road is under construction as a precursor to the commencement construction of the camp facilities.
Underground Exploration at Zaruma
Current and planned underground exploration at the Zaruma Gold Project is designed to confirm the location of, and expand, veins and stockworks that are included in mine plans.
Current underground exploration is focused on the Ana Michele area and, to the north, at the site of the planned Sucre decline. Recent rock channel sampling along the Tamayo vein in the Ana Michele decline has yielded some excellent results, including 52 grams per tonne (“g/t”) gold over 1.6 metres, 44.2 g/t gold over 1.45 metres, and 22.4 g/t gold over 1.28 metres.
Exploration at the Sucre area has intersected a new vein, parallel to the main Sucre high-grade gold vein. Assay results from sampling of this new vein are pending.
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 estimated that the project has a pre-tax undiscounted cash flow of US$467 million over a 14.5 year mine life, with production of approximately 100,000 ounces of gold annually (see news release dated July 12, 2006 and associated SEDAR filings).
Quality Control and Assurance
The preparation of the technical information contained in this news release was supervised by Michel Rowland, a member of the AUSIMM (Australian Institute of Mining and Metallurgy) 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 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.