Dynacor Gold Mines Inc. (TSX:DNG) (Dynacor or the
"Corporation"), an international leading ore purchasing
and processing corporation servicing artisanal and small-scale
miners (ASM), today announced the completion of its due diligence
phase to expand its ore-processing business to an international
level by building an ore-processing pilot plant operation in
Senegal.
Due Diligence ReportBased on
the due diligence phase's positive results, a new company to be
created will move forward on the construction of a new
ore-processing pilot plant located in Senegal. In addition to
executing complete tests of the plant operation, the new company
will develop trusting working relationships with the ASMs and
encourage their participation in our PX IMPACT® clean gold program.
This initiative expands on the successes of the previous due
diligence phase, which began with the arrival of Dynacor's
technical team sent to evaluate the gold potential and ASM industry
in February 2018. Starting with a pilot plant is an important step
to laying the foundation for a more extensive full-scale
operation.
Dynacor is to operate the plant and own the
majority of the new company with 51% ownership. KN Equipments Inc.
and FONSIS will hold the balance at 25% and 24%, respectively.
Three (3) alluvial ASM properties in the state
of Kedougou are part of the pilot plant program, Kharakhena,
Tinkoto and Bantaco. The region of Kedougou is accessible by a
two-lane road from Dakar to the city of Kedougou, a distance of 680
km along the state roads Hwy N1 and N7. The three areas of interest
provided samples to collect and to review the materials from the
artisanal miners working in the pits at depths of 15 m to 70
m. The samples assaying greater than 2 g/t Au for each of the
three areas, had average assay grades of 18.19 g/t Au for
Kharakhena, 29.07 g/t Au for Bantaco, and 9.72 g/t Au for Tinkoto.
The three areas, Kharakhena, Bantaco and Tinkoto, had 55 rock
samples assaying greater than 2 g/t Au over 108 rock samples from
the pits. The maximum assays from the three areas are 701 g/t
Au (Kharakhena), 112 g/t Au (Bantaco), and 27.7 g/t Au
(Tinkoto). The complete sampling was a total of 258
samples.
The material is to be supplied by the local
miners from the three regions, Tinkoto, Bantaco and Kharakhena.
In addition to the three (3) ASM properties,
there are twenty (20) other significant ASM areas, including seven
sites at Kharakhena, eight sites at Tinkoto and five sites at
Bantaco. There is a high probability that they will supply gold ore
to Dynacor.
A satellite imagery study by Japosat Satellite
Mapping discovered seventy-six (76) additional ASM operations
signalling the future potential to grow Dynacor's Senegal
ore-processing division into a much higher capacity.
The Corporation is reviewing a site located in
the hub of the ninety-six (96) ASM properties, east of Kedougou on
the road towards Kharakhena and near the Gambia River. The
prospective plant site is 80 km to Kharakhena, 75 km to Tinkoto and
40 km to Bantaco.
Jean Martineau, president and chief executive
officer of Dynacor, commented: "We are excited to execute on our
strategy of expanding Dynacor's proven business model into the
international market. Besides the significant operational growth
potential, which will stem from the Senegal operation, we are very
proud to be the first and only company on a global scale to offer
our ore-processing service and PX IMPACT® clean gold program to the
ASM community.
Our new company brings to Senegal over 20 years
of experience in purchasing and processing ore from the ASM
industry. The group of three is a low-risk logical partnership
bringing together Dynacor's ore processing leadership, KN
Equipment's working history and connections in Senegal; a
long-standing history of manufacturing milling processing
equipment; and the financial strength and support of the Senegalese
sovereign fund FONSIS."
The Ministry of Mines and Geology strongly
supports and encourages the Corporation's new ASM ore-processing
project. They are pleased to see Dynacor taking this
approach, which will help formalize and regulate the ASM industry,
maintain the revenues within the country, and bring better control
of the gold production at the small-scale mining level. Local
authorities at Kharakhena, Tinkoto and Bantaco, are pleased to see
Dynacor continue their process of moving forward with this project
of providing ore-processing service and developmental support to
better the communities of the ASMs living in Senegal.
With a high-growth economy of 6%, Senegal is one
of Africa’s most stable and gold-rich countries hosting thousands
of ASM miners. Mining in Senegal at the artisanal level started in
the Sabodala area in the 1960s, but it took place more extensively
in the 1990s. In the last decade, the ASM industry has increased
dramatically with people from southeast Senegal, Mali, Guinee,
Burkina Faso, Benin, Cote d’Ivoire, Ghana, Gambia, etc. These ASMs
have been moving to Kedougou, Bantaco, Tinkoto and other areas.
Small-scale mining as of the previous ten years
has increased dramatically. Today, up to 70,000 to 100,000 people
are working in the ASM industry. Senegal still trails some of the
other countries in small-scale mining and gold production (Mali,
Ghana, Sierra Leon and Nigeria) but is rapidly gaining ground. The
three regions, Kharakhena, Tinkoto and Bantaco, have possibly 8,000
to 10,000 people involved in artisanal mining.
Dynacor’s direct contacts with multiple
government representatives, Ministries, various services and
consultants will benefit the Senegal ASM industry. Through
Dynacor’s successful PX IMPACT® gold program, the Corporation will
educate and encourage the ASM industry to produce clean,
responsible gold that is traceable and without the use of
mercury.
On June 29, 2020, the Government of Senegal
announced an end to the COVID-19 related State of Emergency. The
government of Senegal administrative business hours will return to
8:00 a.m. to 5:00 p.m. International commercial flights will resume
July 15. Land and sea borders remain closed until further
notice.
However, as foreign governments implement strict
travel restrictions and fewer international transportation options
are available, it may be challenging to return to Canada, and those
travelling may have to remain in Senegal for an indeterminate
period. Therefore, the Corporation will continue advancing its new
Senegalese expansion project immediately upon the Canadian
government lifting its COVID-19 non-essential travel advisory to
Senegal.
ABOUT KN EQUIPMENTS
Founded in 1959, KN Equipements is a company
based in Rouyn-Noranda (Quebec). It specializes in the design,
manufacturing and distribution of mining equipment. Active in the
Canadian market since its creation, it has also had a permanent
office in Dakar, Senegal since 2016 and has also representatives in
Mali and Mexico. KN Equipements has been operating in the West
African market since 2008 and is currently building a manufacturing
and equipment distribution centre for the mining sector in eastern
Senegal.
ABOUT FONSIS
FONSIS (Fonds Souverain d’Investissements
Stratégiques) of Sénégal, is a limited liability company, an
investment holding with a capital of FCFA 3 billion, entirely owned
by the Republic of Senegal.
FONSIS creation was authorized by Law No 2012-34
of December 31st, 2012, which provides for equity capital of FCFA
500 billion (+/- $US 1 billion) to be constituted in cash and asset
transfers. Its governance complies with the benchmark standards
(Santiago Principles which govern the functioning of the largest
international Sovereign Funds).
The mission of FONSIS, as a catalyst for
investment, is to promote the Senegalese government’s role, a
partner of the private sector with the objectives of creating
wealth and jobs and building financial reserves for present and
future generations.
ABOUT DYNACOR
Dynacor is a dividend-paying gold production
corporation headquartered in Montreal, Canada. The corporation is
engaged in production through the processing of ore purchased from
the ASM (artisanal and small-scale mining) industry. At present,
Dynacor produces and explores in Peru, where its management team
has decades of experience and expertise. In 2019, Dynacor produced
80,677 ounces of gold.
Dynacor produces environmental and socially
responsible gold through its PX IMPACT® gold program. A growing
number of supportive firms from the fine luxury jewelry,
watchmakers and investment sectors are paying a small premium to
our customer and strategic partner for this PX IMPACT® gold. The
premium provides direct investment to develop health and education
projects to our small-scale artisanal miner’s communities.
Dynacor is listed on the Toronto Stock Exchange
(DNG).
FORWARD-LOOKING INFORMATION
Certain statements in the preceding may
constitute forward-looking statements, which involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, performance or achievements of Dynacor, or industry
results, to be materially different from any future result,
performance or achievement expressed or implied by such
forward-looking statements. These statements reflect management’s
current expectations regarding future events and operating
performance as of the date of this news release.
Dynacor (TSX: DNG)
Website: http://www.dynacor.com Twitter:
http://twitter.com/DynacorGold
CONTACT: For more information, please
contact:
Director, Shareholder RelationsDale
NejmeldeenDynacor Gold Mines Inc.T: 514-393-9000 #230 E:
investors@dynacor.com
Shares outstanding:
38,799,756
PDF
available: http://ml.globenewswire.com/Resource/Download/d8c613d1-c38b-4ba8-8a31-7fe8a28fd6cf
For more information, please contact:
Director, Shareholder Relations
Dale Nejmeldeen
Dynacor Gold Mines Inc.
T: 514-393-9000 #230
E: investors@dynacor.com
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