Dynasty Metals and Mining Inc. ("Dynasty" or the "Company") announces, that it has reached agreement with Minera Australiana, Mineaustralia S.A. ("Minera Australiana") to acquire a large group of concessions, (the "Concessions") in the Zaruma-Portovelo gold district of southeastern Ecuador. On completion, Dynasty will control a significant part of this historic gold camp.
The Concessions are located approximately 160 km south of Guayaquil, Ecuador's main seaport, and 55 km southeast of Machala, and have good access and basic infrastructure (see location map attached to this news release).
The Zaruma-Portovelo gold mining camp has been worked since at least the Incan period, and is estimated to have produced five million ounces of gold and more than 12 million ounces of silver during the past one hundred years. The vein district extends over a strike distance of approximately 16 km and has a width of up to 4 km. The most important gold producer in the camp was the South American Development Company ("SADCO") which produced 3.5 million oz of gold and 17 million oz of silver from 1904 to 1950. Mining in the former SADCO area has continued since that date with one Ecuadorian company and other smaller groups estimated to have produced a further 1.5 million oz of gold.
The Concessions total 8,175 Ha (81.75 km2), and were initially acquired by Minera Australiana in an agreement (the "IAMGOLD Agreement") with IAMGOLD Ecuador S.A. ("IAMGOLD") in August 2003. Minera Australiana, an Ecuadorian company in which Rob Washer, the President of Dynasty is the controlling shareholder, has assigned all of its rights in the IAMGOLD Agreement to Dynasty, for no additional consideration, other than the reimbursement of its transaction costs. Under the IAMGOLD Agreement, the Concessions are subject to a 3% NSR royalty in favour of IAMGOLD. Dynasty will have no other obligations with respect to the Concessions, provided that any of the Concessions it may subsequently determine to release must be offered to IAMGOLD.
The Concessions formed the core area of an extensive gold exploration programme that was conducted by IAMGOLD during the period 1999 to 2003 in the search for vein and porphyry-hosted gold-silver mineralisation. The programme consisted of district scale geological mapping, evaluation of old mine workings, 1,705 line-km of magnetic geophysical surveying, and 39 surface and underground diamond drillholes, totaling 15,357.44 m. As reported by IAMGOLD, the best intersections were reported in drillhole RM-11 located in the Portovelo area, with a 0.43m intercept containing 49.3 g/t gold and 53.2 g/t silver. A valuable IAMGOLD data package on the Concessions has also been acquired by Dynasty.
The Concessions are contiguous on three sides with and significantly extend Dynasty's existing two concessions in the Zaruma area, Pacuyurco and Roma. These concessions have a combined total area of 670.9 Ha and are referred to by the Company as the French Vein area. They are located approximately 2.5 km north of Zaruma and lie on the direct northward continuation of the Portovelo-Zaruma vein system that was mined by SADCO. Five separate veins occur in this area, none of which has ever been explored systematically.
Dynasty will consolidate the newly acquired Concessions and the French Vein area concessions into a single project to be referred to as the Zaruma Gold Project (see consolidated concession map attached to this news release). This combined 8,846 Ha concession area is considered by the Company's consultants to have excellent potential for discovery of gold bearing shoots in multiple-vein packages.
The Company will conduct a detailed review of the IAMGOLD data package prior to commencing exploration activity on the Zaruma Gold Project. This transaction is subject to regulatory approval
Exploration of the Company's properties is continuing and is being supervised by Mr. Franklin Guanuna, the Company's Chief Geological Administrator, a qualified person as defined by National Instrument 43-101 "Standards of Disclosure for Mineral Projects" ("43-101"). Mr. Guanuna is responsible for the preparation of technical information in the Company's News Releases.
For further information about the Company, please contact:
(604) 687-0888 Ext. 3
or visit the Company's website at either www.dynastymetalsandmining.com or www.dynastymining.com.
APPROVED BY THE BOARD OF DIRECTORS
Robert Washer, President and CEO
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.