INVESTOR	
  PRESENTATION	
  
June	
  -­‐	
  2014	
  
 
Forward	
  Looking	
  Statements	
  
This	
   presentation	
   contains	
   certain	
   forward-­‐looking	
   statements...
A	
  Gold	
  Performer	
  
Only	
  36	
  million	
  shares	
  outstanding	
  
High-­‐Reward	
  
Home	
  Run	
  Potential	
...
A	
  Non-­‐Dilutive	
  Strategy	
  
§  An	
  industrialized-­‐type	
  gold	
  company	
  with	
  low	
  risk	
  business	...
Operations	
  
§  Ore-­‐Processing	
  	
  
§  Huanca:	
  Producing	
  
§  Chala:	
  Emerging	
  Producer	
  
§  Explor...
Operating	
  Areas	
  
2014-­‐06-­‐05	
  DYNACOR	
  GOLD	
  MINES	
  |	
  TSX:DNG	
   6	
  
S	
  
E	
  W	
  
N	
  
Zoom	
 ...
Objectives	
  
§  Short-­‐term	
  (12	
  months):	
  
§  Produce	
  80,000	
  ounces	
  on	
  annual	
  basis	
  
§  Co...
Delivering	
  Over	
  Time:	
  Huanca	
  
0	
  
20,000	
  
40,000	
  
60,000	
  
80,000	
  
100,000	
  
120,000	
  
2010	
...
Production	
  Estimate	
  With	
  New	
  Mill	
  Expansion:	
  Chala	
  
0	
  
20,000	
  
40,000	
  
60,000	
  
80,000	
  ...
Solid	
  Operational	
  Execution	
  	
  
2014-­‐06-­‐05	
  DYNACOR	
  GOLD	
  MINES	
  |	
  TSX:DNG	
   10	
  
25,000	
  ...
Actual	
  Cash	
  Flow	
  and	
  Earnings	
  Per	
  Share	
  
2014-­‐06-­‐05	
  DYNACOR	
  GOLD	
  MINES	
  |	
  TSX:DNG	
...
Earnings	
  Scenario	
  
2014-­‐06-­‐05	
  DYNACOR	
  GOLD	
  MINES	
  |	
  TSX:DNG	
   12	
  
300TPD	
   450TPD	
   600TP...
Tumipampa:	
  High	
  Grade	
  Gold	
  Project:	
  	
  
§  Ongoing	
  cross-­‐cut	
  and	
  underground	
  
drill	
  prog...
2014-­‐2015	
  Exploration	
  Campaign:	
  Tumipampa	
  
§  Exploration	
  budget	
  of	
  $4.5	
  million	
  
§  Excava...
Tumipampa:	
  Project	
  Location	
  	
  
2014-­‐06-­‐05	
  DYNACOR	
  GOLD	
  MINES	
  |	
  TSX:DNG	
   15	
  
LIMA	
  
C...
Tumipampa:	
  Project	
  Display	
  Model	
  	
  	
  
1	
  VEIN	
  
A	
  VEIN	
  
B	
  VEIN	
  
2007	
  VEIN	
  
SAN	
  PE...
2014-­‐06-­‐05	
  DYNACOR	
  GOLD	
  MINES	
  |	
  TSX:DNG	
   17	
  
VETATUMI
VETA
ROSA
HDD 11
HDD 07
HDD09
HDD10
HDD08
4...
Tumipampa:	
  Ongoing	
  Drilling	
  and	
  Cross-­‐cutting	
  	
  
§  Drilled	
  1753	
  meters	
  in	
  2nd	
  half	
  ...
Financial	
  Overview	
  
As	
  at	
  December	
  31,	
  2013,	
  the	
  Company’s	
  working	
  
capital	
  amounted	
  t...
Three	
  Year	
  Overview	
  
2014-­‐06-­‐05	
  DYNACOR	
  GOLD	
  MINES	
  |	
  TSX:DNG	
   20	
  
Senior	
  Management	
  	
  
Experienced	
  and	
  well-­‐balanced	
  team	
  	
  
with	
  expertise	
  in:	
  
ü  Geolog...
Head	
  Office	
  	
  
	
  
625,	
  boul.	
  René-­‐Lévesque	
  Ouest	
  
Suite	
  1105	
  
Montréal,	
  (Québec)	
  
H3B	
 ...
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Dynacor: June 2014 Corporate Presentation

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Dynacor's (TSX:DNG) (OTC:DNGDF) June 2014 corporate presentation.

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Dynacor: June 2014 Corporate Presentation

  1. 1. INVESTOR  PRESENTATION   June  -­‐  2014  
  2. 2.   Forward  Looking  Statements   This   presentation   contains   certain   forward-­‐looking   statements   regarding   operational   information,   future   exploration   and   development   plans   and   anticipated   future   production.   Words   such   as,   potential”,   “building”   “inferred”,  “if”,  “will”,  “expect”,  “forecast”,  “estimate”,  “consider”,  “may”,    “possible”  and  similar  expressions  have   been  used  to  identify  these  forward-­‐looking  statements.  These  statements  are  management’s  current  beliefs  and   are  based  on  information  currently  available  to  management.     Forward-­‐looking   statements   involve   significant   risk   and   uncertainties.   A   number   of   factors   could   cause   actual   results  to  differ  materially  from  the  results  discussed  in  the  forward-­‐looking  statements  including,  but  not  limited   to,  changes  in  general  economic,  political  and  market  conditions  and  other  risk  factors.  Although  the  forward-­‐ looking  statements  contained  herein  are  based  upon  what  management  believes  to  be  reasonable  assumptions,   management  cannot  assure  that  actual  results  will  be  consistent  with  these  forward-­‐looking  statements.  Investors   should  not  place  under  reliance  forward-­‐looking  statements.         Forward-­‐looking  statements  and  other  information  contained  herein  concerning  the  metals  and  mining  industry   and  Dynacor’s  general  expectations  concerning  the  industry  are  based  on  estimates  prepared  by  management   using   data   from   publicly   available   industry   sources   as   well   as   from   private   sources,   industry   analysis   and   on   assumptions  based  on  data  and  knowledge  of  the  this  industry  which  the  Company  believes  to  be  reasonable.   However,   this   data   is   inherently   imprecise.   While   Dynacor   is   not   aware   of   any   misstatements   regarding   any   industry  data  presented  herein,  the  industry  involves  risks  and  uncertainties  and  is  subject  to  change  based  on   various  factors.  There  is  no  certainty  the  projections  will  be  met.           2014-­‐06-­‐05  DYNACOR  GOLD  MINES  |  TSX:DNG   2  
  3. 3. A  Gold  Performer   Only  36  million  shares  outstanding   High-­‐Reward   Home  Run  Potential   2014-­‐06-­‐05  DYNACOR  GOLD  MINES  |  TSX:DNG   3   A  non-­‐dilutive  business  model   The  key  to  $1.00  eps  
  4. 4. A  Non-­‐Dilutive  Strategy   §  An  industrialized-­‐type  gold  company  with  low  risk  business  model  in  Peru   §  Operating  in  Peru  for  almost  twenty  years;  well  acclimatized  to  its  customs  and  politics   §  Gold  and  silver  production  via  ore-­‐processing  operation    –  CASH  FLOW  GENERATOR   §  Self  finances  exploration  campaigns   §  36.3  million  shares  outstanding   §  Net  income  of  $9.1  million  in  fiscal  2013  ($0.25  earnings  per  share)   §  $17.8  million  working  capital  as  of  March  31,  2014     2014-­‐06-­‐05  DYNACOR  GOLD  MINES  |  TSX:DNG   4  
  5. 5. Operations   §  Ore-­‐Processing     §  Huanca:  Producing   §  Chala:  Emerging  Producer   §  Exploration     §  Flagship  Project:  Tumipampa   §  Greenfield  Projects:  Anta  and  Casaden     2014-­‐06-­‐05  DYNACOR  GOLD  MINES  |  TSX:DNG   5   PERU  
  6. 6. Operating  Areas   2014-­‐06-­‐05  DYNACOR  GOLD  MINES  |  TSX:DNG   6   S   E  W   N   Zoom   Huanca    1   Producer:  250  tpd     Chala  2   Emerging  Producer:  Awaiting  plant   permit  on  new  300  -­‐600  tpd  mill     Tumipampa  3   Exploration:  Underground  high-­‐ grade  gold  drilling;  surface  drilling   on  disseminated  zone       Lima   DRIVING  0  HOURS   30  HOURS  
  7. 7. Objectives   §  Short-­‐term  (12  months):   §  Produce  80,000  ounces  on  annual  basis   §  Continue  cross-­‐cut  to  750  meters       §  Underground  drilling  (Manto  Dorado,  Veta  Rosa,  Veta  Tumi)     §  Geophysical,  geochemical  and  surface  drilling  (Disseminated  Breccia  zone)   §  Begin  exploration  campaign  on  Anta  (Ag)     §  Long-­‐term  (12-­‐36  months)   §  Increase  ore-­‐processing  capacity  to  600  tpd  (Chala)   §  Maximize  shareholder  value  via  direct  production  at  Tumipampa   §  To  be  the  leading  ore-­‐processing  company  in  Peru       2014-­‐06-­‐05  DYNACOR  GOLD  MINES  |  TSX:DNG   7  
  8. 8. Delivering  Over  Time:  Huanca   0   20,000   40,000   60,000   80,000   100,000   120,000   2010   2011   2012   2013   43,743   74,568   104,994   112,114   33,525   46,025   61,264   76,883   Operational  Performance  (2010-­‐2013)   Sales  ($000)   Gold  Production  (oz)  (000)     Sold  76,883  ounces  with  an   average  grade  of  1.04  oz/tonne   (32.34  g/t  Au)  in  2013   2014-­‐06-­‐05  DYNACOR  GOLD  MINES  |  TSX:DNG   8  
  9. 9. Production  Estimate  With  New  Mill  Expansion:  Chala   0   20,000   40,000   60,000   80,000   100,000   120,000   140,000   160,000   300  TPD  (0.90  OZ/T  AU)   450  TPD  (0.82  OZ/T  AU)   600  TPD  (0.75  OZ/T  AU)   86,000   118,000     144,000   Gold  ounces   Annual  Production  Estimate   Chala   2014-­‐06-­‐05  DYNACOR  GOLD  MINES  |  TSX:DNG   9  
  10. 10. Solid  Operational  Execution     2014-­‐06-­‐05  DYNACOR  GOLD  MINES  |  TSX:DNG   10   25,000   45,000   52,000   66,000   70,000   33,525   46,025   61,264   76,883   Gold  Production   2010   Guidance   2010   Actual   2011   Guidance   2011   Actual   2012   Guidance   2012   Actual   2013   Guidance   2013   Actual   2014   ???  
  11. 11. Actual  Cash  Flow  and  Earnings  Per  Share   2014-­‐06-­‐05  DYNACOR  GOLD  MINES  |  TSX:DNG   11   2011   2012   2013   $0.13   $0.26   $0.29   $0.09   $0.21   $0.25   Cash  Flow/Share   Earnings/Share  
  12. 12. Earnings  Scenario   2014-­‐06-­‐05  DYNACOR  GOLD  MINES  |  TSX:DNG   12   300TPD   450TPD   600TPD   900TPD   1200TPD   86,000   Au  oz/yr   118,000   Au  oz/yr   144,000   Au  oz/yr   216,000   Au  oz/yr   288,000   Au  oz/yr  0.29   EPS   0.39   EPS   $0.48   EPS   $0.71   EPS   $0.95   EPS   Planned  Development   Potential  Future  Development   NET  PROFIT/OZ     NET  PROFIT  MARGIN   $118-­‐126   8-­‐11%   $10.3      MILLION                                $0.29  EPS     $14.3  MILLION                                    $0.39  EPS   $17.2  MILLION                                    $0.48  EPS   $25.9  MILLION                                    $0.71  EPS   $34.5  MILLION                                    $0.95  EPS   Earnings  per  share  forecast  based  on:  36  million  o/s    |  $120  per  ounce  net  profit       Range   over  last  2   years   2012-­‐2013   36  M   shares  
  13. 13. Tumipampa:  High  Grade  Gold  Project:     §  Ongoing  cross-­‐cut  and  underground   drill  program   §  Surface  exploration  and  drilling     on  disseminated  breccia  zone   §  Surrounded  by  six  senior  miners  in     south  central  Peru   §  Released  drill  results  of  115.7  g/t     (3.7  ounces)  Au  in  December  2013   §  Auto-­‐financed  exploration  model       2014-­‐06-­‐05  DYNACOR  GOLD  MINES  |  TSX:DNG   13  
  14. 14. 2014-­‐2015  Exploration  Campaign:  Tumipampa   §  Exploration  budget  of  $4.5  million   §  Excavate  420m  cross-­‐cut  to  Rosa/A/Tumi  veins   §  Drill  12  holes  (2000m)  in  the  cross-­‐cut   §  Drill  6  holes  (1800m)  in  the  disseminated  zone   §  Geophysical  studies  of  disseminated  zone   §  Geochemical  and  mapping  of  disseminated  zone     2014-­‐06-­‐05  DYNACOR  GOLD  MINES  |  TSX:DNG   14  
  15. 15. Tumipampa:  Project  Location     2014-­‐06-­‐05  DYNACOR  GOLD  MINES  |  TSX:DNG   15   LIMA   CUZCO   Cuzco  Region   Apurimac  Region   Arequipa  Region   “La  Yegua”   Cu/Au  project   Joint  Venture  with  Japan   (JOGMEC)   Drilling  campaign   underway     “Cotobambas”   404Mt,  0.42%  Cu   “Los  Chancas”   355Mt,  0.62%  Cu   $1.2B  projected   development  budget   Dynacor   “Tumipampa”   Advancing   High-­‐Grade     Gold  zone   “Las  Bambas”   1.7Bt,  0.60%  Cu   SOLD  FOR  $6B  TO   CHINA/  04/14     “Constancia”   277Mt,    0.43%  Cu   Acquired  March/11   $520M  ($0.10/lb  Cu)     “Haquira”   569Mt,  0.64%  Cu   Acquired  Oct/10   $460M  ($0.06/lb  Cu)     •  HIGH-­‐GRADE  GOLD  DEPOSIT   •  ADJACENT  TO  TUMIPAMPA’S  SW  BORDER   •  MINED  BY  LOCALS  FOR  OVER  10  YEARS   •  AVERAGE  GRADE  OF  1/OUNCE  TONNE   •  ORCOPAMPA    /  BUENAVENTURA   •  HIGH-­‐GRADE  GOLD/SILVER  VEIN  DEPOSIT   •  2.1  MILLION  OZ  AU  /  19.8  MILLION  OZ  AG   •  EXHIBITS  SIMILAR  CHARACTERISTICS  TO  TUMIPAMPA’S  HIGH-­‐GRADE  VEIN  STRUCTURE   0  km   200  km   $8  billion  in  development  and  3.6   billion  tons  of  ore  surround   Tumipampa    
  16. 16. Tumipampa:  Project  Display  Model       1  VEIN   A  VEIN   B  VEIN   2007  VEIN   SAN  PEDRO  VEIN   BRECCIA   BRECCIA   Tumipampa  River   Poctococha  Lagoon   Balsacocha  Lagoon   Patacocha  Lagoon    ROSA  VEIN   Skarn  (E)   Cu-­‐Au   Skarn  (W)   Cu-­‐Au   Gold  veins   Disseminated     gold   Zone  4   Old  Spanish  gold-­‐rich  tailings   Cross-­‐cut       tunnel  location   0   1  km   Ø   15  gold  veins  discovered  to  date   Ø   Ancient  drifts  from  Spanish  colonial  period   Ø   2  old  stock  piles  discovered  by  Tumipampa  River   Ø Project  consists  of  three  types  of  gold  mineralization:  Skarn,  Gold  Veins    and  Disseminated  Gold  associated  with   Breccias     Zone  3   Zone  2   Zone  1   2014-­‐06-­‐05  DYNACOR  GOLD  MINES  |  TSX:DNG   16  
  17. 17. 2014-­‐06-­‐05  DYNACOR  GOLD  MINES  |  TSX:DNG   17   VETATUMI VETA ROSA HDD 11 HDD 07 HDD09 HDD10 HDD08 4200 4250 4300 4350 CRUCERO 330NW MANTO DORADO Continuación de Crucero 330NW PROY HDD PROY HDD PROY HDD PROY HDD HDD08-13- IM (463,00 m) HDD18 4400 4450 HDD 21 TCD 06 0 100 GAL 190E CH 125 PROY HDD PROY HDD Future drill targets HDD-­‐2013   HDD Ancho (m) Au (g/t) Ag(oz/t) Cu (%) HDD01-350-IM 1.56 14.67 0.24 0.51 HDD02-350-IM 1.10 115.66 0.52 3.03 HDD03-350-IM 1.42 23.73 0.25 0.19 HDD04-350-IM 0.60 7.25 0.10 0.42 HDD05-350-IM 1.91 0.99 0.07 0.01 HDD06-350-IM 1.10 0.37 0.09 0.10 HDD07-350-IM 1.20 3.08 0.17 0.32 HDD08-350-IM 1.00 17.28 0.25 2.68 HDD08-350-IM 1.50 14.31 0.69 9.57 HDD08-350-IM 0.50 122.00 1.02 6.59 HDD09-350-IM 1.70 7.09 0.09 0.46 Tumipampa:  Cross  Section  of  Underground  Works  
  18. 18. Tumipampa:  Ongoing  Drilling  and  Cross-­‐cutting     §  Drilled  1753  meters  in  2nd  half  of  2013   §  Excavated  a  300  meter  (978  foot)  cross-­‐cut  measuring                                                                                                                                                                                                                                                   3  meter  (11.0  feet)  wide  X  2.5  meter  (8.0  feet)  high  in     the  Manto  Dorado  in  2013     §  Conducted  a  1,064  ha  geophysical  study                                                                                                                                                                                                                                                                 including  a  magnetic  and  induced  polarization  survey  in  2011   §  Collected  1,300  geochemical  samples     §  Drilled  a  total  of  14,060  meters  at  Tumipampa     2014-­‐06-­‐05  DYNACOR  GOLD  MINES  |  TSX:DNG   18  
  19. 19. Financial  Overview   As  at  December  31,  2013,  the  Company’s  working   capital  amounted  to  $17.4M     Dynacor  Gold  Mines:  A  self-­‐financed  gold  company:     operating  an  ore-­‐processing  business  to  generate  gold  sales  that  fund  the  exploration  of  high-­‐reward  mineral  properties.     ”Dynacor  Gold  Mines  is  NOT  a  diluting  asset.”     2014-­‐06-­‐05  DYNACOR  GOLD  MINES  |  TSX:DNG   19  
  20. 20. Three  Year  Overview   2014-­‐06-­‐05  DYNACOR  GOLD  MINES  |  TSX:DNG   20  
  21. 21. Senior  Management     Experienced  and  well-­‐balanced  team     with  expertise  in:   ü  Geology/Exploration   ü  Metallurgy   ü  Custom  milling     ü  Business  management   ü  Finance   ü  Marketing       Since  the  inception  of  Dynacor  Gold  Mines  Inc.  in   the  fall  of  2007,  the  management  team  has   remained  focused  on  a  disciplined  capital   structure,  via  generating  cash  flow  from  its  ore-­‐ processing  division,  to  unlock  the  greater   shareholder  value  through  the  exploration  of  its   100%  owned  Tumipampa  advanced  gold   exploration  project.       Management  strives  to  avoid  dilution  of  its   shareholders  by  repeated  financings  that  typify   the  junior  gold  exploration  sector.       JEAN  MARTINEAU,  PRESIDENT  AND  CEO     •  20  YEARS  EXPERIENCE  IN  THE  RESOURCE    INDUSTRY  IN  CANADA  AND  SOUTH   AMERICA   •  FORMER  DIRECTOR  OF  WESDOME  GOLD  MINES  1999  –  2007   LEONARD  TEOLI,  VICE  PRESIDENT  AND  CFO     •  20  YEARS  EXPERIENCE  IN  ACCOUNTING  AND  FINANCE  EXECUTIVE       •  FORMER  CFO  OF  DIA  BRAS  EXPLORATION  2003-­‐2008     •  STARTED  CAREER  WITH  PRICE  WATHERHOUSE  1987  –  1996   •  MEMBER  OF  THE  CANADIAN  INSTITUTE  OF  CHARTERED  ACCOUNTANTS  SINCE   1990   JORGE  LUIS  CARDENAS,    GENERAL  MANAGER  ORE-­‐PROCESSING     •  MINING  ENGINEER  AND  METALLURGIST   •  MORE  THAN  20  YEARS  EXPERIENCE  IN  MINING  (18  YEARS  WITH  DYNACOR)       ALONSO  SANCHEZ,  CHIEF  GEOLOGIST   •  15  YEARS  EXPERIENCE  AS  A  MINE  AND  EXPLORATION  GEOLOGIST  (EXPERT  OF   PERUVIAN  GEOLOGY)   •  FORMER  GEOLOGIST  OF  PUBLICLY  LISTED  COMPANY  BUENAVENTURA  S.A.A   FROM  1995-­‐2006   •  EXPERT  IN  EPITHERMAL  GOLD,  SILVER,  TIN,  TUNGSTEN,  POLYMETALLIC   DEPOSITS    AND  SKARNS  IN  PERU       2014-­‐06-­‐05  DYNACOR  GOLD  MINES  |  TSX:DNG   21  
  22. 22. Head  Office       625,  boul.  René-­‐Lévesque  Ouest   Suite  1105   Montréal,  (Québec)   H3B  1R2   (514)  393.9000     Dale  Nejmeldeen   Investor  Relations   (604)  492.0099     www.dynacorgold.com     2014-­‐06-­‐05  DYNACOR  GOLD  MINES  |  TSX:DNG   22  

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