Dynasty boosts Zaruma gold resources

Vancouver — Recent exploration programs combined with results generated by previous operators have allowed Dynasty Metals & Mining (DMM-V, DMMIF-O) to boost and upgrade gold resources at its wholly owned Zaruma project in El Oro province, southwestern Ecuador.

The newly released, independent technical report (compliant with National Instrument 43-101 standards) showed a 72% increase in measured and indicated resources, and a 69% boost in inferred resources over estimates released in an initial study a year ago.

Based on the new report, Zaruma has a measured resource of 1.56 million tonnes grading 13.93 grams gold per tonne, or about 702,100 contained ounces. This is the first time measured resources have been reported for the project.

Indicated resources now stand at 915,000 tonnes grading 13.87 grams gold per tonne, or about 408,100 contained ounces, while inferred resources are 3.38 million tonnes at 12.72 grams, or about 1.38 million oz. gold.

The new report incorporates results from recent underground channel sampling of 19 main veins carried out by the company and exploration results generated by previous operators.

Dynasty president Rob Washer says the updated resources confirm the property’s exploration potential. The company holds 103 sq. km in the historic mining region, where past production is estimated at about 5 million oz.

Dynasty acquired Zaruma in April 2004, along with an extensive exploration database generated by South American Development Co., TVX Gold (now Kinross Gold [K-T, KGC-N]), and Iamgold Ecuador. Previous work includes extensive underground channel sampling (more than 100,000 samples) and 37 drill holes.

Dynasty’s work programs included surface mapping, trenching and underground mine sampling aimed at extending known vein systems and finding new systems. The extensive epithermal vein systems are hosted by a Tertiary volcanic sequence of intermediate to mafic volcanic breccias, tuffs and andesites.

A scoping study for Zaruma is in progress, along with a similar study for the advanced Jerusalem polymetallic project, in Ecuador’s Amazon region. Jerusalem hosts a measured resource of 602,300 tonnes grading 12.38 grams gold, 91 grams silver, 0.07% copper, 0.66% lead and 2.8% zinc, plus an indicated resource of 864,400 tonnes at similar grades. Inferred resources add another 1.9 million tonnes, again at similar grades. Resource estimates for both Zaruma and Jerusalem are expected to be further expanded and upgraded with ongoing work programs.