Dynacor/PX Impact Gold A Positive Impact on our Mining Communities

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A small premium is paid by a growing number of supportive firms from the fine luxury jewellery, watchmakers and banking sectors • These firms wish to start incorporating the use of responsibly sourced traceable gold that is produced by small-scale artisanal miners • One hundred percent of the premiums paid are used in the projects • PX Impact program is behind the creation and refurbishment of a science and computer room
with 14 new computers.

Dynacor Aims For Global Lead In Artisanal Ore Processing

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Dynacor is one of the largest gold ore purchasing processors in Peru operating a specialized, yet ardently proven business model based on a real venture with artisan miners as well as the communities in which they live and work. Considering that 2013, the government has been formalizing the artisan mining industry to mitigate the dangers associated with inadequate environmental management, insufficient health and safety provision and escalating security issues. Dynacor has supported a significant number of miners in the process of legitimizing their operations by initially helping them enroll with the government’s formalization program.

Dynacor has established fair and transparent trade practices like assistance in all sampling procedure, repeat samples, arbitrage process and administrative and technical training. All these initiatives have gained Dynacor the esteem of the artisan miners and therefore created the introduction of a stable and authentic supplier base in the area. Dynacor reinforces this relationship by bringing specific support to its providers in the area, thus maximizing the yield of their small-scale operation, and consequently their earnings. Other steps emphasize the importance awarded to artisan miners from Dynacor such as overnight lodging at the mill, speedy payment turnaround (24hrs), oversampling of every load for confirmation of gold material from an independent laboratory are highlights of these value-added services provided.

The cost of gold is offer and demand on the available. Dynacor is providing reassurance for its strategic partner, Swiss-based private firm, Precinox SA at the progression of a new label called PX Impact Gold. PX Impact Gold coming from Dynacor’s mining providers guarantees that the total traceability of ore as well as its roots in the artisan mines with a certificate of mercury-free gold at the processing system. Most Precinox SA customers like the world’s leading European luxury watchmakers are paying a premium for the PX Impact Gold certificate. The further profits from sales of this PX Impact Gold are flowing to the artisanal miner’s communities through direct investment in the health or education industry. The PX Impact Gold application in Peru has started and is visibly growing across the nation’s small mining community at a faster rate than expectations.

The cost of the ore bought from artisan miners is set on an individual transaction basis in which Dynacor determines the actual grades and recovery rates obtained from every load. The miner provides a selection of four different samples from each delivery, including one remitted to the supplier, and an analysis is conducted to determine its contents. If the outcomes are out of spec, carrying out an additional analysis is the standard process. At the request of the miner, the fourth sample would serve for arbitrage where an independent laboratory tests the ore. Both parties agree that the individual laboratory analysis has the last say and Dynacor pays so. The miner receives from situ payment conferring to the spot price of gold.

Directly speaking, Dynacor’s competitive advantage rests on its own twenty years of involvement with artisan miners and their ore. The company’s knowledge in processing different sorts of ore is second to none. The group strives to maintain high gold retrieval criteria together with all of the connections and trust it’s cultivated over the years along with the providers that number in the hundreds. Dynacor’s extensive network of ore purchasers in Peru with the readily available location of its mill a few minutes off the Pan American highway in Chala equate into a reliable and stable source of supply out of the artisan miners.

Artisan mines sometimes employ local and frequently family-related employees, and they usually utilize hand tools and second-rate gear. Artisanal miners often run the business of mining seasonally or to a part-time foundation, alternating with additional financial activities like farming. An estimated 13-20 million individuals over 50 developing nations are directly engaged in the artisanal mining industry. This presents Dynacor with a vast selection of opportunities for its future growth. The company plans to turn into an ally with developing countries by working together to enhance the small-scale mining industry.

PX Precinox & PX Impact Gold Awarded Prize For Ethics, Social Responsibility and Sustainable Development

Les projets de PX Précinox, l’ETHZ et l’association Ecoparc sont les lauréats de la 13e édition du Prix suisse de l’éthique qui a été remis mardi soir. Lancé en 2005 par la Haute école d’ingénierie et de gestion du canton de Vaud (HEIG-VD), le Prix suisse de l’éthique est un prix indépendant qui entend promouvoir l’éthique, le développement durable et la responsabilité sociale dans la stratégie des entreprises et des collectivités publiques. Son objectif est que ces démarches deviennent naturelles et évidentes pour chacun.

PX Précinox SA, active dans l’extraction et le commerce d’or, a mis en place le projet PX impact. Son objectif, fournir de l’or extrait de manière responsable en offrant à ses clients, grâce à la traçabilité de la chaîne d’approvisionnement de ses produits, une transparence totale. Elle garantit également une extraction du minerai sans mercure et a instauré un système de prime répercuté sur ses clients, utilisé pour le financement de projets locaux. L’objectif est de contribuer de manière concrète au bien-être et au développement des communautés locales.

L’ETH Zurich est la première université en Suisse à publier un rapport sur le développement durable. Ce rapport permet de promouvoir un large dialogue interne sur la contribution de l’université au développement durable, mais également d’attirer employés et étudiants vers les préoccupations de durabilité et leur donner la visibilité appropriée pour leur engagement.

Enfin, l’association Ecoparc a pour vocation de favoriser le développement durable dans l’environnement construit. Organisée comme un carrefour de l’information, elle diffuse les outils, les méthodologies et les bonnes pratiques à la population, aux acteurs privés et aux collectivités publiques. Une des grandes forces de l’association est la qualité et la richesse des informations mises à disposition directement sur internet. La bibliothèque National Suisse a d’ailleurs sélectionné son site pour les archives Web. L’association assume un rôle de médiateur entre les différentes parties prenantes d’un projet et est prête à tout instant à intervenir pour promouvoir et faciliter la mise en place de normes de développement durable.

La remise du prix, un partenariat de l’Agefi, s’est déroulée en présence de Cesla Amarelle, conseillère d’Etat vaudoise. Emmanuel Tonuitti, fondateur de l’International Ethics Consulting Group, a en outre gratifié le public d’une conférence sur le thème «Entrepreneuriat et défis éthiques».


MinerAndina PDAC 2018 International Special Edition

2018 Minerandina article

Over the last ten years, Dynacor Gold Mines Inc. (TSX: DNG) has generated an annual return of +32% compared to -38% coming from its peers trading in the S&P TSX Global Gold Index. Analysts covering Dynacor such as Ryan Irvine, president of Keystone Financial with a $3.10 BUY on the stock says, “While we tread very lightly in commodity-based businesses, the stock appears to offer good speculative value at present and offers a unique exposure to gold without the typical significant deposit specific risk seen with traditional junior gold producers.”

The company’s business model offers investors a proven and more consistent path to participate in the gold market. Dynacor’s core business is built on providing ore processing service to hundreds of miners which is a more stable and less risky business than operating a mine.

Miners in the country look to Dynacor as their fair, trustworthy and reliable provider as well as the leader in this specialized niche of the mining space. It poured its first gold bar in Peru more than twenty years ago. Dynacor mitigates the risks of mining given its resources come from a country rich with thousands of high-grade gold producers, hereby diversifying the risk of supply coming from a single mine source.

There is also no risk from potential nationalization, royalty increases or labor disruptions as the ore does not come from foreign mining companies, but rather solely from Peru’s small-scale miners. Over the years of cultivating relationships, building trust and growing its network, Dynacor has perfected the complex business of processing from various types of ore.

A short time ago, the company from its old mill location, Huanca was buying ore from 250 different miners. Step forward to today and the new plant at its new location, Chala and you will see the company has successfully grown its portfolio of miners by more than 60% in the last year to over 400 high-grade gold miners.

Looking ahead in 2018, Dynacor is in the enviable position of starting the year at a record level of throughput. In the first quarter of last year, the company averaged 200 TPD (tonnes per day) well below expected throughput levels for the first quarter, 2018. The company will generate more production than last year, with lower costs.


The New PX Impact Gold Program


Dynacor Gold Mines Inc. and PX Group (Switzerland) have confirmed the strategic alliance between PX Precinox and Dynacor Gold Mines. PX Precinox is the only privately held Swiss refinery and manufacturer of finished and semi-finished precious metal products for the high-tech and luxury industries. This strategic alliance involves:

Jointly developing a business for business responsible gold program under which all the gold produced by Dynacor will be marketed under the label PX Impact Gold and sold to some of the world’s leading luxury jewellery and watch manufacturers which are very keen to purchase socially responsible traceable gold produced by artisanal miners. The buyers of PX Impact Gold will pay a small premium that is then used to finance socio-economic development projects in Peru for artisanal miners and their communities.

An exclusive gold supply agreement, under which Dynacor has obtained very favourable commercial conditions and has initiated a technical exchange and co-operation program.

PX IMPACT exemplifies the group’s values. ​Here, the familiar prefix stands for environmental, social and ethical practices that respect human rights and are an integral part of a management system that guarantees complete traceability across the supply chain. PX IMPACT means ethical gold.

The IMPACT is very real.  The school library that opened in May 2016 is a prime example. The group makes a lasting and positive contribution to the economic, social and environmental development of mining communities.

Putting convictions into practice. The family-owned group goes beyond the official certifications awarded to it, and which attest to the provenance and responsible, environmentally sustainable production of gold. It looks further and takes responsibility. And joins forces with Dynacor Gold Inc.

PX IMPACT gold is traced. From leaving the mines in Peru to refining in Switzerland, we never let PX Impact gold out of our sight. By keeping constant track, we can guarantee it contains no traces of mercury.

A Message From The President 

Message from the President,

Dear Shareholders,
In early October 2016, we achieved a very important milestone for Dynacor when we poured our first gold Doré bar at our new modern efficient Veta Dorada plant located in Chala, in the heart of one of the most important gold producing regions of Peru. We finished the construction of the plant in May and the final stages of the permitting process followed quickly in step allowing us to begin operating the plant in September. No production or processing problems have been encountered and the plant met 100% of its design specifications. 

In 2016, we focussed our human and financial resources on finishing the construction and the start-up of our new Veta Dorada plant and therefore our exploration activities were limited. However, because of the very significant discoveries at Tumipampa during the 2013-2015 exploration campaign, including the discovery of a large Cu-Au porphyry, Dynacor doubled its land holdings at Tumipampa to 9,756 hectares. 

Management is currently looking at all the possible pathways to accelerate the development and valuation of this mineral rich property where we have discovered 4 types of mineralization: gold mineralized veins, a Cu-Au porphyry, a zone with disseminated gold and finally polymetallic skarn structures. 

Over the next 2-3 years Dynacor’s strategy for growth in ore processing will be articulated along two main paths:

a) We will focus on operating the most modern and efficient gold ore processing facility in Peru and I expect that by the end of 2017 we will be operating the plant between 300-360 tpd and will have produced close to 90,000 ounces of gold. This will propel Dynacor to the number one spot in terms of ore processing in Peru and make your Company a leading edge in terms of environmental performance and social responsibility. Further expansion, in 2018 and 2019, of our milling capacity to 450-600 tpd will be implemented in step with market conditions.

b) Dynacor will actively pursue new strategic partnerships and/or opportunities outside of Peru in ore processing. It will thus be able to leverage its unique know-how and expertise that it has acquired over the last 18 years working with artisanal and small scale miners and their communities.

Finally, I would like to personally thank our management both in Peru and in Canada as well as our more than 325 employees for their continued hard work and dedication which is much appreciated and will continue to be the motor of our growth. I would also like to thank our shareholders for their continued confidence in Dynacor’s management team and the Board of Directors. We will continue to strive to add value to your company. 

(S) Jean Martineau

President and CEO, Dynacor Gold Mines inc.

Peru To Simplify Formalization Process


The new administration under Pedro Pablo Kuczynski has put into effect a decree to simplify the local mining formalization process in Peru by no later than the end of the year. The new rule is designed to increase and bring back more ore providers via an orderly and simple process with less confusion. The President of the Councils of Ministers Peru, Fernando Zavala, said yesterday (November 21, 2016), a new legislative decree was enacted to promote and strengthen the process of formalization of local mining activity by the 31st of December. Premier Zavala goes on to say that he reaffirms the commitment to support all miners currently in the formalization process.

According to the Economic Studies of the Scotia Bank, in September, mining production from the informal and illegal miners (currently unregistered) broke a monthly production record set back in September, 2011.  The main source of Peru’s gold production comes from informal and illegal miners. Informal gold production estimated by MEM (Ministry of Energy and Mines) from January to September, 2016 was 19.1 MT (million tons) or 17% of total gold production in Peru. Interestingly this is 24% more than Latin America’s largest gold mine, Yanacocha which according to MEM estimates produced 15.4 MT in the same period.

As of February, 2016 the MEM began including in the national gold report estimates of informal and illegal gold production from various mining regions throughout Peru. Without the inclusion of this, year to date national gold production would have been 5% less.