Stakeholder: What’s the plan for Tumipampa?
Dynacor: This year we will invest much less on Tumipampa due to our priority of opening the new Veta Dorada mill in Chala. At this time, we are working on the surface collecting geochemical data in preparation for a new drill campaign on both the porphyry and disseminated breccia zones. Our 2016 exploration budget will be less than $1 million.
Tumipampa is a massive property with a number of gold mineralized zones. It consists of the disseminated breccia, porphyry associated with skarn and veins. This is a full geological plate of mineralization. In order to establish drill targets, we must carry out more surface work.
Our immediate goal is to mine and process our own ore from Tumipampa. We expect it could take us into 2018 before receiving the extraction permit. Currently we are investigating an alternative plan in order for us to start production much sooner. This could provide enough capital to fund Tumipampa’s ongoing development. If the alternative plan under review turns out to be feasible, we will issue a news release.
Stakeholder: Do you need a NI 43-101 resource calculation before proceeding with the alternative plan?
Stakeholder: What is the status of the NI 43-101 resource calculation?
Dynacor: It is progressing on schedule as the independent research team is on site at this time. It will take the team 45-60 days after they return to prepare and write the report. The report is more than just a resource calculation; it is to include a full technical review covering the three different mineralized zones. The report consists of technical descriptions, images, maps and project recommendations. As well this will be Dynacor’s first ever NI 43-101 resource calculation. We are quite eager to receive the report, as it will render the Tumipampa project as an industry-approved source of recognition. We expect the report will attract more independent geo analysis and reviews. The full on technical report will also assist in the upcoming drill program which if proven successful will add more value. It is likely after summer and into September or October that the NI 43-101 resource calculation and technical report will be released.
Stakeholder: What are the thoughts in taking on a partner for Tumipampa?
Dynacor: We don’t need to invest a large amount of money on drilling to create more value at Tumipampa. The next drill program will involve many shallow holes. Taking on a partner at Tumipampa is still too premature. We believe there is more value to discover on the property before looking at partners. It will be better for us to spend $2-3 million dollars of drilling first, as that’s all it should take. There is more impact in having our drills hit something significant that could drive the stock price to much higher levels.
Stakeholder: It sounds like the 2nd half of this year will be one of hitting some long awaited milestones?
Dynacor: We agree that with the opening of the new mill, which will generate stronger financials together with our first 43-101-resource calculation, Dynacor will be in a positive position to start the second half of 2016.