This is a great move by Dynacor and will boost its production/tolling capacity from about 50,000 oz to at least 110,000 oz per year.

This gold processing plant will include all of the company's know-how derived from operating the Acari ore processing facility for the last 12 years.

That is, it will be done right and very efficiently

A budget of $4.5-million has been approved and will be financed through acombination of debt and working capital. When the new 300-tonne-per-day-capacityfacility is operational, the company will be able to produce approximately60,000 ounces of gold per year at this plant.

It is exxpandable to 430 tpd which will add another 25 000 oz per year for a total installed production capacity of 135,000 oz per year.

Demand for gold/silver and copper ore processing is continually growing inPeru since there are more than 50,000 artisanal small- and medium-scale minersin a country that is the sixth largest gold producer in the world.

The company'snew location will support the accessibility of larger long-haul trucks todeliver greater tonnages of ore easily from all over Peru via the Pan AmericanHighway. Furthermore, its new plant will be hooked up to the Peruvian national energy grid which will give it a considerable cost saving as well as decreasingthe company's carbon footprint.

Current cash margins are about $240 per oz which, at current capacity of the Acari mill, will generate over $10 - $12 million in annual cash flows ( or about
.35 per share ).

Once the new mill is up and running in late 2012, annual cash flows will be in excess of $35 million per year or about $1 per share.

This mill capacity expansion will pay for the Tumipampa exploration and development program.

Tumipampa is looking very very good and has an excellent chance of becoming a high grade gold producer that will be able to process the production from these two mills.

Current fair value of DNG is close to the $2 level and this should more than double when the second mill comes onstream in late 2012..................

I’m very excited about the drilling results that are coming. March of this year I had the opportunity to visit Puru and the area adjacent to SLI property. My conversations with some of the locals had indicated to me that in curtain area in the region there are narrow veins,, but with the rising price of gold it allows SLI to move forward with a great deal of confidences.

My wife has a very large position in both companies. Her question was if SLI discovers gold on the property. Will SLI build their own mill or engage in a JV with DNG to process the ore?

If SLI discovery is blue shy, who will their get to process the ore?