During the month of July, the company installed a new 5x8 ball mill replacing the 5x6 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.

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.

In July, Dynacor 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 US$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 US$1,586.

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

"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," said Jean Martineau, President and Chief Executive Officer of Dynacor.