This amounts to a year over year increase of 37% (2010 - 33,525 ounces) and a quarterly increase of 29% (Q4/2010 - 3,533 ounces) respectively.

During 2011, Dynacor processed 64,041 tonnes of ore at an average grade of 0.77 ounces of gold per tonne, while recovery for the year is ranked in the top quartile of the industry at 92.9%.

During the fourth quarter 2011, ore processed was 19,060 tonnes at an average grade of 0.75 ounces of gold per tonne, a little lower than the year average rate of 0.77 ounces per tonne.

Recoveries were consistent at just above 92% resulting in the company's historic best quarter of 13,157 ounces, a 26% increase compared to Q4-2010 (10,477 ounces).

At its current 220 tpd capacity, Dynacor said it should process close to 75,000 tonnes of ore on a yearly basis, which would represent a 17% throughput processing increase compared to 2011.

Depending on the grade of ore purchased and processed, gold processing production should range between 50,000 and 52,000 ounces in 2012.

Dynacor said complete production results will be released upon filing of the company's financials later in March 2012.

In addition, it said it is waiting for the obtaining of its environmental and construction permits to begin the construction of a new 300 tonne per day gold-ore processing plant in southern Peru, which represents the key to the 'ramp-up' in production to a level in excess of 100,000 tonnes of ore per annum in a mid-term period.

In October 2011, the company's Board of Director approved the construction of said plant.

"The new plant to be located in Ica, central Peru, has been designed to be readily upgraded to 430 tonnes per day. This 'state of the art' gold-ore processing plant is to be built with an initial capacity of 300 tonnes per day," the company said.

Dynacor explained it is positioning itself to become the foremost gold ore processing company in Peru, which is the 6th largest gold producer in the world, as the small scale mining community is rapidly expanding.

The company said is in the strong position of self-funding its exploration budget for the coming season.

"Given the robust cash flow picture it enjoys, Dynacor is once again in the top quartile of lowest share counts in the junior mining sector," the company said.

The Canadian company expects to release information on its upcoming exploration program on its Tumipampa property in the first quarter of 2012.

Dynacor is a gold exploration and mining company active in Peru through its subsidiaries since 1996. Its assets include six exploration properties, including the Tumipampa property, along with its recently upgraded 220 tpd ore processing mill at Acari.

Its mill produces gold from the processing of ore purchased from local producers.