MONTREAL, QUEBEC–(Marketwired – Jan. 31, 2018) – Dynacor Gold Mines Inc. (TSX:DNG)(OTC:DNGDF) (Dynacor or the Corporation) is pleased to report that it has received community approval to drill test the disseminated zone of its flagship gold project, Tumipampa. Dynacor will now apply for the exploration permit from the Ministry of Energy and Mines. The Corporation is preparing a drilling campaign of the high priority targets immediately after the rainy season.

Dynacor also wishes to release significant surface results obtained in the disseminated gold zone at Tumipampa during Q3-2017. The mineralogy of the samples was studied using a spectroradiometer and photomicrography.

Exploration Highlights

• Gold: 25% of the 104 surface channel samples had anomalous Au grades above 0.05 g/t or (0.05 ppm), ranging from 0.05 to 16.52 g/t;
• Silver: 28.8% of the 104 surface channel samples had anomalous Ag grades above 1.5 g/t (1.5 ppm), ranging from 1.5 to 268 g/t;
• Copper: 26.9 % of the 104 surface channel samples had Cu grades above 100 ppm, ranging from 100 to 762 ppm;
• Molybdenum: 22.1% of the 104 samples had Mo grades above 5 ppm, ranging from 5 to 66.6 ppm;
• Lead: 11.5% of the 104 samples had Pb grades above 250 ppm, ranging from 250 to 3719 ppm; and
• Free gold particles: high definition photomicrography revealed the presence of free gold grains in a highly altered epithermal matrix within the quartzites.

Surface Sampling

During Q3-2017, a surface sampling campaign was undertaken targeting the Sumac brecciated zone which is 600 meters long and 300 meters wide and is located in the south-east of the disseminated gold zone at Tumipampa. Mineralisation in this zone is delimited by the Diana and Adriana Faults (see Figure 1a and 1b). The results are presented in Table 1 and show a very significant percentage of anomalous samples.

Mineralogical Studies

Mineral identification of altered rock samples was carried out using a TERRASPEC spectroradiometer (TerraSpec 4 Hi-Res). Selected samples were also studied using a photomicrography microscope in order to precisely determine the mineralogical composition.

The data obtained using the spectroradiometer conclusively demonstrated the presence of alteration minerals such as dickite, kaolinite, alunite, illite and sericite that are formed by epithermal alteration processes. These alteration minerals, when they are found in an altered matrix of epithermal alteration are often associated with anomalous values in gold, silver, antimony, arsenic and barium (see Photo1 and Photo2).

As shown in Photo 2, free gold grains (approximately 20-30 microns) occurring in a limonite matrix have been identified in samples taken from the hydrothermal quartzite breccias.

2018 Exploration

This year, Dynacor will begin a drilling programme on the disseminated gold zone. The drilling targets have been defined based on all the available geological data – including the data reported in this press release, historical geochemical sampling data, reinterpretation of the geophysical data – and the recommendations of independent experts (in disseminated gold deposits) whom visited the property last fall.

The drilling programme will begin immediately after the rainy season and will target the disseminated gold zone, in particular the Sumac breccia zone. The approved budget is 2-2.5 million US dollars over the next 18-24 months.

ABOUT DYNACOR GOLD MINES INC.

Dynacor Gold Mines Inc. is a gold production corporation headquartered in Montreal, Canada. The corporation is engaged in production through its government approved ore processing operations. At present, Dynacor produces and explores in Peru where its management team has decades of experience and expertise. In 2017, Dynacor produced 79,897 ounces of gold, a 9% increase as compared with 2016 (73,477 ounces). Dynacor trades on the Toronto Stock Exchange (DNG) and the OTC in the United States under the symbol (DNGDF).

FORWARD LOOKING INFORMATION

Certain statements in the foregoing may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Dynacor, or industry results, to be materially different from any future result, performance or achievement expressed or implied by such forward-looking statements. These statements reflect management’s current expectations regarding future events and operating performance as of the date of this news release.

Dynacor Gold Mines Inc. (TSX:DNG)

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