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MONTREAL, QUEBEC–(Marketwire – Sept. 9, 2011) – Dynacor Gold Mines Inc. (“Dynacor” or “the Company”)(TSX:DNG) is pleased to announce that as of the first week of September, its 100% owned gold custom milling plant is now operating at 200 tonnes per day as compared to an average operating rate of 175.3 tpd during Q2 2011. This is an increase of 14.1%.
During the month of July, the Company installed a new 5×8 ball mill replacing the 5×6 ball mill; consequently, increasing the rated milling capacity to 200 tonnes per day. However, in order to maintain the process gold recovery yield within the 92-94% optimal range, at the increased milling rate of 200 tpd, a new cyanidation tank was needed. The new tank was tested in August, commissioned in September, allowing the plant to operate efficiently at its new 200 tpd rated capacity.
Table 1 below shows the performance of the Company’s gold custom milling plant over the last 20 months. Beginning in Q1 2010, when the average ore throughput was 108.7 tpd, the Company has progressively increased the rate to the current 200 tpd achieved in September 2011.
Table 1. 2010/2011 Gold Custom Milling Operational Data
| Average ore | Gold Recovery | Plant head grade | Gold Produced | |
| Quarter/Month | Throughput (tpd) | (%) | (Au oz per tonne) | (ounces) |
| Q1 2010 | 108.7 | 96.6 | 0.9 | 5,179 |
| Q2 2010 | 116.4 | 95.4 | 0.78 | 7,291 |
| Q3 2010 | 152.5 | 94.3 | 0.82 | 10,576 |
| Q4 2010 | 165.7 | 93.1 | 0.77 | 10,479 |
| Q1 2011 | 176.6 | 92.7 | 0.71 | 9,926 |
| Q2 2011 | 175.3 | 92.7 | 0.78 | 11,808 |
| Q3 2011 July | 184.3 | 93.1 | 0.63 | 3,614 |
| Aug. (est) | 180 | — | — | — |
| Sep. (est) | 200 | — | — | — |
Gold Production
In July, the Company produced 3,614 ounces of gold and 10,920 ounces of silver by-product from its gold custom-milling plant in Peru for total sales of USD $6.6 million. Gold production was slightly reduced due to a lower plant head grade during the operational testing of the new ball mill and cyanidation tank.
The average selling price of gold per ounce for the month of July was USD $1,586.
Management expects to meet the 2011 production outlook of 45,000 ounces of gold.
Jean Martineau, President and Chief Executive Officer of Dynacor, stated: “During the summer months, Dynacor was able to deliver on it its expansion plans by installing a new ball mill and cyanide tank at the custom milling plant. The Company is on course to continue increasing production as robust sales and demand forge ahead.”
ABOUT DYNACOR GOLD MINES INC.
Dynacor is a gold exploration and mining company active in Peru through its subsidiaries since 1996. The Company’s assets include the Acari, Casaden and Tumipampa exploration properties. Dynacor’s gold mill produces gold by custom milling. Dynacor’s strength and competitive advantage comes with the experience and knowledge the Company has developed while working in Peru. Its pride remains in maintaining respect and positive work ethics toward its employees, partners and local communities.
