Dynacor Gold Mines Inc. ( dynacor )
Symbol : DNG
Toronto Stock Exchange (TSX)
Dynacor Gold Mines Inc. reports record net earnings of more than
$297,000 in Q3 2008
Montr�al, Qu�bec, November 17, 2008 � Dynacor Gold Mines
Inc. (Dynacor TSX:DNG) is pleased to announce record net earnings
exceeding $297,000 as well as its financial results for the 3rd quarter
of 2008. The consolidated financial statements (all currency figures
appear in Canadian dollars unless otherwise specified) along with
management's discussion and analysis are available on Dynacor's website
at www.dynacorgold.com and the documents have been filed with SEDAR at
www.sedar.com.
Highlights
for the three-month and the nine-month periods ended September 30, 2008
� Net earnings of
$297,528 for the three-month period ended September 30 and of $559,429
for the nine-month period;
� Gold sales increased by 27% to reach 9,508 ounces (as
compared to 7,478
ounces in Q3 2007);
� Sales of $8,379,445 for the three-month period ended September 30,
2008, for a total of $23,359,567 since the beginning of the year;
� Working capital of $3,889,346 as of September 30, 2008 ($713,114 as of
September 30, 2007).
Sales
Sales are summarized
below :
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For
the three-month period ended sept 30, 2008
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For
the three-month period ended sept 30, 2007
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|
For
the nine-month period ended sept 30, 2008
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|
For
the period from may 1 to sept 30, 2007
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Gold sales (ounces)
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9,508
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7,428
|
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25,484
|
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11,050
|
|
$
|
|
$
|
|
$
|
|
$
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Sales
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8,379,445
|
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5,237,366
|
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23,359,567
|
|
7,763,517
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Cost of sales
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7,383,706
|
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4,774,227
|
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20,349,294
|
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7,089,693
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Gross
earnings before amortization
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995,739
|
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463,139
|
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3,010,273
|
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673,824
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Amortization
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75,135
|
|
67,226
|
|
254,730
|
|
67,226
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Gross
earnings
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920,604
|
|
395,913
|
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2,755,543
|
|
606,598
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Total gold production
came from custom milling of gold ore purchased from many local producers.
|
For the three-month period
ended Sept 30, 2008
|
|
For the three-month period
ended Sept 30, 2007
|
|
For the nine-month period
ended Sept 30, 2008
|
|
For the period from
May 1 to September 30, 2007
|
$CA
/ ounce
|
|
Average
selling price
|
868
|
|
690
|
|
899
|
|
677
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Average
cash cost
|
751
|
|
633
|
|
776
|
|
629
|
Margin_before
amortization
|
117
|
|
57
|
|
123
|
|
48
|
Operating
Activities for the three-month period ended September 30, 2008
The Company recorded
net earnings of $297,528 in comparison with net earnings of $185,953 for
the same period in 2007. Gross earnings before amortization were
$995,739, compared to $463,139 for Q3 2007. General and administrative
expenses were $364,201, which represents a decrease in comparison with Q2
2008 ($477,060).
The income tax burden
is composed of the taxes of the Peruvian subsidiary, at a rate of 30%. The
effective tax rate is different from statutory rate because the Canadian
parent company has recorded a loss and cannot record this tax benefit.
Gold
Production from Custom Milling
In 2007, the Company
had established a sales goal of 25,000 ounces
for 2008. During the third quarter, gold sales were 9,508 ounces
adding up to a total of 25,484 ounces for the first nine months
of 2008. The Company has therefore, during the third quarter, already
surpassed its sales goal for 2008.
Exploration Outlook
Tumipampa
In late 2007, the Company began a 4,000 meter
drilling campaign and a surface exploration program. A total of 21 drill
holes have been completed. The results compiled so far are very
encouraging since they have revealed the continuity and significance of
the target structures.
A new Skarn structure
has been identified and sampled. Surface samples of the latter structure
are very encouraging. The first drill hole in this new Skarn structure
shows a gold and copper mineralization, notably gold grades of 15.3g/t
over 4.9 meters
(real thickness). The Company plans to further drill this Skarn
structure. However, before undertaking this new drilling campaign, the
Company wishes to carry out a detailed geochemical and geophysical survey
as well as to finish its systematic surface sampling program of the
property. With all of this data the Company will be able to estimate the
size and importance of the Skarn and better the positioning of its future
drilling targets. Sampling results and the drilling data obtained so far
have been published (see Press Releases dated February 12, July 15 and
September 4, 2008).
Mr Alain-Jean Beauregard, a geologist from G�ologica Groupe Conseil,
acts as the qualified person ("QP") for the Company regarding
the sampling procedure, the technical information, and the supervision of
fieldwork. As he frequently visits the properties, he can therefore
assess, in compliance with 43-101 regulations, of the precision and
accuracy of the results and of the mining and geological knowledge
relating to the Tumipampa property.
ABOUT DYNACOR GOLD MINES INC.
Dynacor is a gold exploration and mining company, that has been active
in Peru through its subsidiaries since 1996. The Company's assets include
the Acari, Casaden and Tumipampa exploration properties. The Acari mill
produces gold by custom milling. Dynacor's strength and competitive advantage
comes with the experience and knowledge the Company has developed while
working in Peru. Its pride remains in maintaining respect and positive
work ethics toward its employees, partners and local communities.
For more information, please contact :
Jean Martineau
President & CEO
Dynacor Gold Mines Inc.
514 288-3224
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Renmark Financial Communications inc.
Barbara Komorowski : bkomorowski@renmarkfinancial.com
Ryan Van De Polder : rvandepolder@renmarkfinancial.com
Tel. : 514 939-3989
Fax : 514 939-3717
www.renmarkfinancial.com
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