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Message: Peru News (Dynacor Milling)

Some estimates of the grade Dynacor is milling can be surmised from the numbers in their news release.

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.

So optimistically calculating their average of 200 tpd X 365 days = 73,000 tons/year.

It would actually have been much less than that as they were as low as 108 tpd for some of the year and ramping up to 200. This will factor their avg grade higher than my final calculation.

Management expects to meet the 2011 production outlook of 45,000 ounces of gold.

45,000 oz X 28.349 g per oz = 1,275,700 grams to be produced this year.

1,275,700 grams of gold from 73,000 tons = 17.475 g/t

Since they will not mill 73,000 tons of ore this year that would mean their grade is actually higher than that calculated.

Dynacor's average grade through their mill would be somewhere over 17.475 g/t during the current year.

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