Dynacor Group to Construct Pilot Gold Plant in Senegal, Expanding West African Operations

Dynacor Group, a Canadian gold ore processor, has announced plans to construct a pilot gold ore processing plant in Senegal's Kédougou region. This strategic move, with an initial capacity of 50 tonnes per day, aims to establish operational parameters for larger commercial ventures in West Africa, leveraging the region's significant artisanal gold mining sector.

Dynacor Expands Footprint with Senegal Pilot Plant

Dynacor Group Inc. (TSX: DNG) is set to build a pilot gold ore processing plant in eastern Senegal, marking a significant expansion of its operations beyond Peru. The plant, located in the gold-rich Kédougou region, will process ore purchased from small artisanal miners. This initiative is crucial for Dynacor to assess the financial and operational viability of larger-scale commercial operations in West Africa.

Key Takeaways

• Strategic Expansion: Dynacor is expanding its gold processing operations into West Africa, specifically Senegal, to tap into the region's abundant artisanal gold mining sector.
• Pilot Plant Objective: The 50 tonnes per day capacity pilot plant will serve as a due diligence tool to establish financial and operational parameters for future larger commercial investments.
• Local Integration: Dynacor established a wholly-owned Senegalese subsidiary, Galam SA, in 2023, and acquired a local company with a mining concession for the plant's construction.
• Due Diligence Underway: Environmental impact studies, metallurgy, and engineering studies are in progress, with construction anticipated to begin in the first half of 2025.
• Rich Gold Resources: Senegal is a significant gold producer, with an estimated 18 tonnes in 2023, and a large artisanal mining sector, particularly in the Kédougou region.

Project Development and Timeline

Dynacor's expansion into Senegal has been meticulously planned. In 2023, the company established Galam SA, a wholly-owned Senegalese subsidiary. This was followed by the acquisition of a local company holding a 50-hectare mining concession with government operating authorization, which will house the pilot plant.

• 2023: Establishment of Galam SA, a wholly-owned Senegalese subsidiary.
• 2024: Acquisition of a local company with a 50-hectare mining concession.
• Early 2024: Launch of environmental impact, metallurgy, and engineering studies.
• December 2024: Expected finalization of environmental impact study.
• First Half of 2025: Planned commencement of pilot plant construction.

Geological and Market Insights

Since 2018, Dynacor has conducted six geological survey campaigns in eastern Senegal, confirming attractive gold volumes and grades. Senegal presents a stable economic and political environment, with a robust mining sector. The country produced an estimated 18 tonnes of gold in 2023, with the artisanal mining sector contributing significantly, particularly in the Kédougou region, which accounts for approximately 96% of artisanal and small-scale mining (ASM) gold sites.

Dynacor aims to work with local artisanal miners, providing technical contributions and formalizing the industry, aligning with its strategic vision to become a global leader in responsible gold production from artisanal sources. The company's PX IMPACT® gold program, which provides direct investment for health and education projects in ASM communities, underscores its commitment to responsible practices.

Sources

• Dynacor Group: Construction of a Pilot Plant in Senegal, Junior Mining Network.