Dynasty Metals & Mining Inc. has delivered its first shipment of gold dore from its Zaruma Gold Project in Ecuador to a refinery in Canada.
Dynasty Metals & Mining Inc. is a Canadian based mining company involved in the exploration and development of mineral properties in Ecuador.
The delivery contains approximately 2,400 troy ounces ("ounces") of fine gold, with an approximate value of US$3 million.
To date, the company has processed approximately 5,300 ounces of gold at its plant in Zaruma, including the 2,400 ounces delivered to the refinery. Of the remaining 2,900 ounces, 1,400 ounces will be extracted in due course and 1,500 ounces will remain as work in progress contained in the carbon stripping section of the plant. In addition, the company has processed in excess of 19,000 ounces of silver, which it expects to sell locally.
"The first exportation and upcoming sale of gold is a significant milestone for the company, particularly in a time when gold prices are near an all time high,” said Robert Washer, President and CEO of Dynasty. “The processing plant at Zaruma is fully operational, and with the tonnage of material being mined increasing each month we expect to be cash flow positive for the remainder of the year."
While there has been continued improvement in overall mine development and operational activities, however, the company admitted that progress has been much slower than expected over the last six months.
In addition to previously reported mining start-up challenges, the company has been unable to secure a timely exploitation contract with the Ecuadorian Government.
Also, the time taken in transition to the new Mining Law regulations caused management to defer making certain capital investment decisions, which directly impacted mine development progress.
After positive meetings with the new Minister of Non-Renewable Natural Resources during the last quarter, the company hired 30 additional local employees to work at the mines, purchased a significant amount of additional mining equipment, continued to train local workers for skilled positions and hired additional experienced Australian mine managers to facilitate increased future production and the overall efficiency of its mining operations.
