Dynasty Metals boosts Goldfield resource (January 07, 2008)

Vancouver — Dynasty Metals & Mining (DMM-T, DMMIF-O) has delivered a 140% increase in the measured and indicated gold resource at its Dynasty Goldfield project in southwestern Ecuador.

An independent report brings the resource to 6.67 million tonnes grading 4.7 grams gold per tonne and 37 grams silver for just over 1 million contained ounces gold. The new estimate also reviews 1.3 million inferred tonnes at 4.7 grams gold and 34 grams silver for another 1.15 million contained ounces gold.

Data incorporated in the new resource were generated from drilling and trenching programs on the Cerro Verde, Papayal and Trapichillo areas of the project. Dynasty Goldfield is one of eight porphyry-style targets identified by Dynasty Metals in the area.

“Before our initial campaign on the Dynasty Goldfield, none of these targets had been previously drilled, or even systematically explored,” said company president and CEO Robert Washer in a statement. “This report demonstrates both the potential of the (Dynasty copper-gold) belt and our ability to turn exploration dollars into ounces in the ground.”

Dynasty Goldfield hosts a series of gold-silver mineralized quartz-sulphide veins and stockworks over an area of about 30 sq. km in a northeast-southwest structural corridor that extends into northwestern Peru.

The company is continuing trenching on the project area, where it has identified several high-grade gold and silver target areas.

Dynasty Metals recently received conditional exchange approval to sell its Copper Duke gold-copper project, located in the same structural corridor in southeastern Ecuador, to SBI Skin Biology (SBI.H-V) for 51 million shares plus a 2% net smelter royalty. Once completed, the reverse-takeover transaction will see Dynasty owning about 60% of SBI.

Dynasty Metals is also moving its Zaruma gold project toward production. With construction well under way, production of roughly 100,000 oz. gold annually is expected to start by mid-2008. Zaruma has a 14.5-year mine life.

In October, the company closed a $9.9-million financing to fund Zaruma mine construction and startup.

Dynasty Metals shares recently rallied to an all-time high around $11, before plunging to under $7 in late December. The aspiring gold producer has 29 million shares outstanding.