Dynacor Gold Mines has received the construction permit for its planned new custom gold ore processing plant in Chala, southern Peru. The Chala plant will have an initial ore processing capacity of 300 mt/d (102,000 mt/y) and has been designed to be readily expanded to 450 mt/d (153,000 mt/y) and then to 600 mt/d (204,000 mt/y) by adding additional processing lines and ball mills.

The plant will process ore purchased from small Peruvian mining companies.

Dynacor is a Canadian company headquartered in Montreal, Quebec. It currently operates an 85,000-mt/y gold ore processing plant in Huanca, Peru, which also processes purchased ore. The Huanca plant poured its first gold in 1998.

The Chala facility will be built on a 135-ha site that is part of a 200-ha mining concession that Dynacor purchased in March 2011. The concession is located in the department of Arequipa, district of Chala, in the heart of one of the most productive gold mining regions of Peru. The total construction cost is estimated at $10 million and will be financed internally.

The construction permit was issued by Peru’s Ministry of Energy and Mines.

Work already completed at the Chala site includes: a 5-km road connecting the site to the Pan-American South highway; a power line connected to the national power grid; water wells, water storage tanks and a pumping station; a perimeter security fence and gate; housing facilities for the company’s employees and construction crews; and milling equipment, including two 7- x 8-ft ball mills that were tested at the Huanca mill. The site has ample space for tailings ponds for many years of operation.