8-K: DynaResource Announces Metallurgical Test Results with Over 95% Gold Recovery at San Jose de Gracia Mine

DynaResource reports successful metallurgical test work at its San Jose de Gracia mine in Mexico, achieving gold recoveries exceeding 95%.

Summary

• DynaResource, Inc. announced positive metallurgical test work results from its San Jose de Gracia mine in Mexico.
• The test work, part of an SK 1300 Technical Report preparation, showed gold recoveries greater than 95% using gravity followed by flotation.
• Gravity gold recoveries reached up to 33.8%, indicating the suitability of conventional gravity gold processing methods.
• The company plans to re-establish a primary gravity gold circuit with three new Falcon gravity concentrators to improve overall gold recovery from the low to mid-70% range to approximately 80%.
• The gravity circuit is expected to be operational in the third quarter of 2025.
• The metallurgical test work results are from three fresh rock composite samples from the active exploration areas of San Pablo, San Pablo Sur, and La Mochomera.
• The grind size for the samples tested was 80%, passing 80 microns using standard industry reagents.

Sentiment

Score: 8

Explanation: The announcement is positive due to the high gold recovery rates and the potential for increased production efficiency. The company's commitment to sustainable growth and operational efficiency further contributes to the positive sentiment.

Positives

• High gold recoveries (greater than 95%) indicate easily processable ore.
• Re-installation of the gravity gold circuit is expected to improve overall gold recoveries to approximately 80%.
• The metallurgical test work results support the planned re-installation of the gravity gold circuit at San Jose de Gracia.
• The company anticipates an improvement in overall gold recoveries to approximately 80% with an operating gravity circuit in the third quarter 2025.

Risks

• The announcement contains forward-looking statements which are subject to various risks and uncertainties.
• These risks include fluctuations in currency markets, price volatility in commodity markets, and discrepancies between actual and estimated production.
• Other risks include changes in government regulations, the speculative nature of mineral exploration, and potential accidents or labor disputes.

Future Outlook

DynaResource plans to release an SK1300 Technical Report Pre-Feasibility Study in early Q2 2025 and expects the gravity circuit to be operational in the third quarter of 2025, improving overall gold recoveries to approximately 80%.

Management Comments

• Rohan Hazelton, CEO of DynaResource, commented, 'This metallurgical work is important data for the upcoming SK1300 Technical Report Pre-Feasibility Study that we plan to release in early Q2 2025.'
• Hazelton also stated, 'Better than 95% gold recovery means our ore is easily processable and this supports our planned re-installation of the gravity gold circuit at San Jose de Gracia.'
• Hazelton noted that during the period 2015 to 2019 the gravity circuit at San Jose recovered 31% of the gold, and with an operating gravity circuit in the third quarter 2025, the company anticipates an improvement in overall gold recoveries to approximately 80%.

Industry Context

The announcement highlights DynaResource's efforts to improve gold recovery at its San Jose de Gracia mine, aligning with industry trends focused on operational efficiency and sustainable growth. The use of Falcon gravity concentrators is a common practice in gold mining to enhance recovery rates.

Comparison to Industry Standards

• Achieving over 95% gold recovery is a strong result, potentially placing DynaResource among the higher performers in the gold mining industry for similar ore types.
• Companies like Newmont and Barrick Gold often report overall gold recoveries in the 80-90% range, so DynaResource's test results are promising.
• The planned improvement to 80% overall recovery with the gravity circuit would bring them closer to industry standards for similar operations.

Stakeholder Impact

• Shareholders can expect potential increases in production and profitability due to improved gold recovery.
• The company's commitment to responsible mining practices and community contributions may positively impact local communities.
• Employees may benefit from increased operational efficiency and potential job security.

Next Steps

• Release of the SK1300 Technical Report Pre-Feasibility Study in early Q2 2025.
• Re-establishment of the primary gravity gold circuit with the installation of three new Falcon gravity concentrators.
• Operational start of the gravity circuit in the third quarter of 2025.

Key Dates

Keywords

Metallurgical Test Work, Gold Recovery, San Jose de Gracia, DynaResource, Mining, Gravity Circuit, Falcon Concentrators