FOR IMMEDIATE RELEASE
IRVING, TX, United States, via ETELIGIS INC., 11/10/2014 – – DynaResource, Inc. (OTCQB: DYNR) (“DynaUSA”, and “the Company”) is pleased to announce that it has appointed Mr. Robert M. (“Chip”) Allender Jr. as Executive V.P. – Director of Mining Operations.
During a professional career spanning over 35 years, Mr. Allender has been involved in a broad range of managerial and technical positions in mineral exploration, mine development, and mining operations on six continents. His experience encompasses precious metal, base metal, industrial mineral, and fuel mineral projects in over twenty countries. Mr. Allender has most recently worked as a consultant to several emerging North American and European junior mining companies on projects in Australia, Canada, Turkey, West Africa, and Mexico.
Mr. Allender’s experience includes all aspects of mineral exploration, property evaluation, deposit development, mergers & acquisitions, and production of industrial, base, and precious minerals. Mr. Allender is a Certified Professional Geologist and a Registered Member of the Society for Mining, Metallurgy, and Exploration (SME). He holds a B.S. degree in Geology from Colorado State University and studied mineral economics at Colorado School of Mines.
Mr. K.D. Diepholz, Chairman/CEO of DynaUSA said; “Mr. Allender is a consummate professional with over 35 years of experience in the resource sectors. His professionalism and stature in these industries speak for themselves. Mr. Allender will lead the operations and project development at the San Jose de Gracia Project (“SJG”), under Mineras de DynaResource S.A. de C.V. (“DynaMineras”), the exclusive operating entity at SJG, which development is projected to include an expansion of the current underground mining and pilot production activities, and is expected to include DynaMineras’ accomplishing of a preliminary economic assessment report, scoping study, or similar, which report will be expected to support the project financing of the possible open pit production at SJG. I am delighted to welcome Mr. Allender to the DynaResource Companies and I look forward to working with him.”
Mr. Allender said: “DynaUSA, in conjunction with the SJG Project, offer a unique and substantial combination and provide the opportunity for the development of a first-class mining company. I am excited to join a very talented professional and management staff already in place at the DynaResource Companies, in both the US and Mexico. The SJG mine and plant staff exhibit an exceptional mix of knowledgeable and experienced mining engineers and geologists who exhibit the know how to operate mines and develop mineral deposits. I am looking forward to providing the leadership and guidance for the DynaResource Companies, in order to develop and expand the SJG Project into a world class property.”
DynaMineras – 2014 Deliveries for Sale of Gold Oz Produced in Concentrate:
On May 9, 2014, DynaMineras reported the delivery for sale of approximately 236 Oz gold contained in concentrates. (See DynaUSA news release of May 9, 2014).
On June 18, 2014, DynaMineras reported the delivery for sale of approximately 511 Oz gold contained in concentrates. (See DynaUSA news release of June 18, 2014).
On July 31, 2014, DynaMineras reported the delivery for sale of approximately 200 Oz gold contained in concentrates. (See DynaUSA news release of July 31, 2014).
On August 11, 2014, DynaMineras reported the delivery for sale of approximately 205 Oz gold contained in concentrates. (See DynaUSA news release of August 11, 2014).
On October 30, 2014, DynaMineras reported the delivery for sale of approximately 300 Oz gold contained in concentrates. (See DynaUSA news release of October 30, 2014).
DynaMineras – Exclusive Operating Entity at San Jose de Gracia (DynaUSA Owns 100%):
Under the provisions of Operating Agreements between DynaMineras and DynaResource de Mexico, S.A. de C.V. (“DynaMéxico), originating in 2005 and including the Exploitation Amendment Agreement dated May 15, 2013 (“EAA”); DynaMineras is named the exclusive operating entity at the SJG Project. Under the terms of the EAA, DynaMineras retains the rights to finance, maintain, operate, explore and exploit the SJG Property. (See DynaUSA news release dated June 21, 2013.) DynaUSA owns 100% of DynaMineras.
DynaMineras – 20 Year Land Lease Agreement:
On January 6, 2014, DynaMineras entered into a 20 year land lease agreement (The “20 Year Land Lease”) with the Santa Maria Ejido Community (“SJG Ejido”) surrounding SJG.
The 20 Year Land Lease covers an area of 4,399 hectares surrounding the main mineral resource areas of SJG, and provides for annual lease payments by DynaMineras of $1,359,443 Pesos (approx. $104,250.USD). (See DynaUSA news release dated January 13, 2014).
DynaMineras – Mine Plan and Mill Operations (Pilot Operations):
DynaMineras is conducting operations at SJG according to internally developed mine plans for San Pablo Mine, and through the internally designed SJG Pilot Mill facility (consisting of a basic gravity-flotation circuit) which was previously operated by DynaUSA during the 2003-2006 period. There is no preliminary economic assessment report completed for SJG so the precise cutoff grade for underground mining has not yet been determined. The operations are being funded internally by DynaMineras and DynaUSA. The mine plan was developed from the block model of resources as defined in the DynaMéxico NI 43-101 Mineral Resource Estimate (“See Current NI 43-101 Mineral Resource Estimate for SJG”, below); and from the analysis of underground mining works conducted in 2003-2006. The operations at SJG will be directed and managed by Mr. Allender, and with assistance from Dr. Jose Vargas Lugo, President of México Operations for DynaMineras and DynaUSA.
DynaUSA and DynaMineras Accounts Receivable from DynaMéxico:
As of November 10, 2014, DynaUSA and DynaMineras report current accounts receivable from DynaMéxico of $4,000,000 and $97,500 USD respectively.
DynaMéxico Ownership – DynaUSA owns 80%:
DynaMéxico owns 100% of the SJG Project. DynaUSA currently holds 80% of the total outstanding Capital of DynaMéxico.
DynaMéxico – President Holding General Powers of Attorney:
The Chairman-CEO of DynaUSA, who also serves as the President of DynaMéxico, holds broad powers of attorney (“POA’s”) for DynaMéxico which were granted and ratified by the shareholders of DynaMéxico in several written acts of the shareholders.
DynaMéxico – Mining Permit:
(Permission to Exploit and conduct mining activities at the San Pablo Area of San Jose de Gracia; Issued by the Federal Environmental Authority in México-SEMARNAT)
On September 30, 2013, DynaMéxico received from the Secretaria de Medio Ambiente Y Recursos Naturales, the Federal Environmental Authority in México (“SEMARNAT”), the approval and permission which allows for the exploitation and mining activities at the San Pablo Area of SJG (“the Semarnat-SJG San Pablo Exploitation Permit”). (See DynaUSA news release dated October 3, 2013).
DynaMéxico – Pilot Mill Permit:
(Permission to Operate Pilot Mill Facility at SJG; Issued by the Federal Environmental Authority in México-SEMARNAT)
On June 17, 2013 DynaMéxico received from “SEMARNAT”, the approval and permission which allows for the rehabilitation and operation of the pilot mill facility at SJG (“the Semarnat-SJG Mill Permit”). (See DynaUSA news release dated June 28, 2013.)
DynaUSA – DynaMéxico (Previous Pilot Production Operations 2003-2006):
DynaUSA is a Resource Investment, Management, Production and Operations Company, with current underground mining and pilot mill production operations in Mexico, based in Irving, Texas; with a current focus on the exploitation and development of the San Jose de Gracia Project in northern Sinaloa México (“SJG”), targeting growth in the production, development, and exploration of predominately gold resources. The Company founded “DynaMéxico” in March 2000 specifically for the purpose of acquiring and consolidating the SJG District; and it completed the consolidation of the entire SJG District to DynaMéxico in 2003 (approx. 15 sq. km. at that time), with the exception of the San Miguel Mining Concession (7 Hectares, for which DynaMéxico is proceeding towards accomplishing the transfer of title, under previously signed sale and purchase agreements). During the period 2003-2006, DynaMéxico conducted pilot production operations at the San Pablo area of SJG, reporting production results of: 18,250 Oz. Gold sold; 42,000 tons mill feed; average feed grades of 15-20 g/t Gold; and, average production costs of less than $175./Oz. Gold.
DynaUSA Management Team:
In a prior news release dated May 15, 2013, the DynaUSA announced the promotion of Dr. Jose Vargas Lugo to the position of President of México Operations. Dr. Vargas is a Mexican National and licensed physician, has worked with DynaResource for over 12 years, and is an integral part of company operations in México.
In a prior news release dated September 19, 2013, DynaUSA announced the appointment of Mr. Chad Mooney to the position of Executive V.P.-Capital Markets. Mr. Mooney previously built a top 10 business at Smith Barney, and he reported directly to his mentor, Mr. Jamie Dimon, the current Chairman and CEO of JP Morgan Chase.
In a prior news release dated January 29, 2014, DynaUSA announced the appointment of Mr. David S. Hall, CPA, to the position of Executive V.P.-CFO. Mr. Hall was formerly the owner and CEO of the Hall Group CPA’s, a certified public accounting and auditing firm in Dallas, Texas, which served as the public auditing firm for DynaUSA since 2004.
San José de Gracia (“SJG”):
The San Jose de Gracia District, currently covering an area of 69,121 Hectares, is 100% owned by DynaResource de México, S.A. de C.V. (“DynaMéxico”). DynaUSA currently holds 80% of the outstanding shares of DynaMéxico.
In excess of one million ounces gold was reportedly produced from the SJG District in the early 1900’s, originating from high grade gold veins, including approximately 470,000 Oz. gold reportedly produced from the La Purisima area of SJG at an average gold grade of 66.7 g/t. In June 2010, the SJG Project was recognized by the State of Sinaloa as the most significant Gold Project in the State for the year 2010.
National Instrument 43-101 (“NI 43-101”) Technical Report for DynaMéxico – SJG:
DynaUSA received from DynaMéxico on March 28, 2012 a National Instrument 43-101 (“NI 43-101”) compliant Technical Report for the San Jose de Gracia Project (the “2012 DynaMéxico Luna-CAM SJG Technical Report”, the “Technical Report”), and approved by DynaMéxico, the 100% owner of SJG. The 2012 DynaMéxico Luna-CAM SJG Technical Report was prepared by Mr. Ramon Luna, BS, P.Geo., of Servicios y Proyectos Mineros, Hermosillo, México and a Qualified Person as defined under NI 43-101; and by Mr. Robert Sandefur, BS, MSc, P.E., a senior reserve analyst for Chlumsky, Armbrust & Meyer LLC, Lakewood, CO., and a Qualified Person as defined under NI 43-101. The 2012 DynaMéxico Luna-CAM SJG Technical Report includes as Section Fourteen (14) a Mineral Resource Estimate for SJG as prepared by Mr. Sandefur (the “2012 DynaMéxico-CAM SJG 43-101 Mineral Resource Estimate”, and, the “Mineral Resource Estimate”). DynaUSA filed the Technical Report on SEDAR (www.sedar.com) on March 28, 2012.
DynaUSA received from DynaMéxico on December 31, 2012, an updated NI 43-101 compliant (“NI 43-101”) Technical Report for the San Jose de Gracia Project (the “Updated 2012 DynaMéxico Luna-CAM SJG Technical Report, and the “Updated Technical Report”). The Updated Technical Report was approved by DynaMéxico, and filed by DynaUSA with SEDAR on December 31, 2012. (See DynaUSA news release dated January 10, 2013.)
National Instrument 43-101 (“NI 43-101”) Mineral Resource Estimate for SJG:
The 2012 DynaMéxico-CAM SJG Mineral Resource Estimate concentrates on four separate main vein systems at SJG: Tres Amigos, San Pablo, La Union, and La Purisima. The Mineral Resource Estimate includes the following Resources:
(1) Tres Amigos; 893,000 tonnes with an average grade of 4.46 g/t, totaling 128,000 Oz. Au;
(2) San Pablo; 1,308,000 tonnes with an average grade of 6.52 g/t, totaling 274,000 Oz. Au.;
(1) 3,953,000 tonnes in aggregate for the four main vein systems, with an average grade of 5.83 g/t, totaling 741,000 Oz. Au.
The Effective Date of the 2012 DynaMéxico Luna-CAM SJG Technical Reports and including the 2012 DynaMéxico-CAM SJG 43-101 Mineral Resource Estimate is February 6, 2012. The Mineral Resource Estimate is reported using a 2.0 g/t cut off grade for underground mining. As of the Effective Date of the Technical Reports and Mineral Resource Estimate, there is no economic assessment report completed for SJG so the precise cutoff grade for underground mining has not yet been determined.
On behalf of the Board of Directors,
DynaResource, Inc.; Chairman and CEO
Important Cautionary Note Regarding Canadian Disclosure Standards:
The Company is an "OTC Reporting Issuer" as that term is defined in Multilateral Instrument 51-509, Issuers Quoted in the U.S. Over-the-Counter Markets, promulgated by various Canadian provincial Securities Commissions.
Accordingly, certain disclosure in this news release or other disclosure provided by the Company has been prepared in accordance with the requirements of securities laws in effect in Canada, which differ from the requirements of United States securities laws. In Canada, an issuer is required to provide technical information with respect to mineralization, including reserves and resources, if any, on its mineral exploration properties in accordance with Canadian requirements, which differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”) applicable to registration statements and reports filed by United States companies pursuant to the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended. As such, information contained in this news release or other disclosure provided by the Company concerning descriptions of mineralization under Canadian standards may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the SEC and not subject to Canadian securities legislation. This news release or other disclosure provided by the Company may use the terms “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources”. While these terms are recognized and required by Canadian regulations (under National Instrument 43-101, Standards of Disclosure for Mineral Projects), the SEC does not recognize them. United States investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted to reserves. In addition, “inferred mineral resources” have a great amount of uncertainty as to their existence and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities legislation, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, although they may form, in certain circumstances, the basis of a “preliminary economic assessment” as that term is defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects. U.S. investors are cautioned not to assume that part or all of an inferred mineral resource exists, or is economically or legally mineable.
Cautionary Note Regarding Forward-Looking Information:
This News release contains forward-looking statements within the meaning of Section 27 A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Certain information contained in this news release, including any information relating to future financial or operating performance may be deemed “forward-looking”. All statements in this news release, other than statements of historical fact, that address events or developments that DynaResource expects to occur, are “forward-looking information”. These statements relate to future events or future performance and reflect the Company’s expectations regarding the future growth, results of operations, business prospects and opportunities of DynaResource. These forward-looking statements reflect the Company’s current internal projections, expectations or beliefs and are based on information currently available to DynaResource. In some cases forward-looking information can be identified by terminology such as “may”, “will”, “should”, “expect”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “projects”, “potential”, “scheduled”, “forecast”, “budget” or the negative of those terms or other comparable terminology. Certain assumptions have been made regarding the Company’s plans at the San Jose de Gracia property. Many of these assumptions are based on factors and events that are not within the control of DynaResource and there is no assurance they will prove to be correct. Such factors include, without limitation: capital requirements, fluctuations in the international currency markets and in the rates of exchange of the currencies of the United States and México; price volatility in the spot and forward markets for commodities; discrepancies between actual and estimated production, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in national and local governments in any country which DynaResource currently or may in the future carry on business; taxation; controls; regulations and political or economic developments in the countries in which DynaResource does or may carry on business; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits, diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or reclamation activities; changes in project parameters as plans continue to be refined; accidents; labor disputes; defective title to mineral claims or property or contests over claims to mineral properties. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance, to cover these risks) as well as those risks referenced in the Annual Report for DynaResource available at www.sec.gov. Forward-looking information is not a guarantee of future performance and actual results and future events could differ materially from those discussed in the forward-looking information. All of the forward-looking information contained in this news release is qualified by these cautionary statements. Although DynaResource believes that the forward-looking information contained in this news release is based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such statements. Accordingly, readers are cautioned against placing undue reliance on forward-looking information. DynaResource expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise.
For further information on DynaUSA, DynaMineras, and DynaMéxico, please visit www.dynaresource.com.
Brad J. Saulter
US Telephone: 972-868-9066
Chairman / CEO
DynaResource de México–Presidente; Mineras de DynaResource-Presidente
SOURCE: DynaResource, Inc.