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Dynacor Gold ramps up Huanca plant, Peru

Dynacor Gold ramps up Huanca plant, Peru

Photo by Duane Daws

13th June 2014

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Montreal-based gold miner Dynacor Gold Mines on Friday said it had once more achieved the nameplate capacity at its Huanca gold/silver processing plant, in Peru, following a production slowdown in the first two months of the year owing to a government crackdown on illegal mining and gold exports.

In their fight against illegal gold mining, Peruvian authorities had in recent months permanently closed 13 ore processing plants in the south of the country – six in the Nazca area and seven in the Chala area.

Dynacor’s Huanca gold ore-processing operations were slowed down owing to the energetic and unprecedented measures taken by the Peruvian authorities to combat illegal gold mining and illegal gold exports from Peru. Consequently, and despite the fact that the corporation was solely buying ore from registered miners, it faced delays in exporting its gold dore output - owing to general increased measures at customs - which led to a temporary stoppage of ore purchases and a production slow-down.

Dynacor was able to resume ore purchasing in the first week of March, after officials from the Peruvian Ministry of Energy and Mines visited Huanca and concluded that the ore processing facility was fully compliant with all local mining regulations.

The TSX-listed company said the plant operated at its maximum capacity of 250 t/d in May and produced 6 810 oz of gold. In April, the plant operated at 150 t/d and produced 5 273 oz of yellow metal.

Dynacor said it was working to rebuild its operating ore inventory levels.

The gold miner said a new legal framework for the small-mining sector had now been put in place, raising hope that its 300 t/d Chala plant would move towards permitting.

The company has invested $2.3-million as part of its $10-million construction budget for Chala.

Dynacor's stock rose 10.71% on Friday to close at C$1.86 apiece.

Edited by Creamer Media Reporter

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