DynaResource, Inc.

The Company | DynaResource, Inc.

 

DynaResource, Inc. is a Junior Resource Company, which has strategically negotiated, acquired, and consolidated 100% interest in DynaResource de Mexico, SA de CV. ("DynaMexico") and the San Jose de Gracia Property in Northern Sinaloa Mexico ("SJG") through 2003. The San Jose de Gracia Property reports historical production of +1,000,000 Oz. AU; and currently contains the potential for hosting a +3,000,000 Oz. AU resource. DynaMexico operated a small scale production at the San Jose de Gracia Property from mid 2003 to June, 2006; and reports Production of 18,500 Oz., at an average grade of 20 g/t. AU, with average production costs of $175/Oz. In mid 2006, recognizing the appreciation in gold prices and a vast SJG property to develop, the Company focused its efforts on the financing and exploration and development of SJG; and at September 1, 2006, the Company signed a definitive agreement with Goldgroup Mining, Inc., Vancouver, BC., to provide for an $18 million financing of exploration and development activities at the SJG (See “Earn In / Option Agreement”).

 

Primary Property:

 

SAN JOSE de GRACIA (Sinaloa, Mexico; “SJG”); Potentially the “Most Significant” Gold Project in the Region; (100 % Owned By DynaResource de Mexico, SA de CV ("DynaMexico"), which is currently 50 % owned by DynaResource, Inc. (See "Earn In / Option Agreement); 15 Square Kilometers Mineralized Area; Historic Production of 1 M Oz. Gold, Bonanza Gold Grades; + 3 M. Oz. AU Potential; Recent High Grade Production;

  • 4,750 Oz. Gold Produced at San Pablo Area in 5 Months Production, 2003; Average Grade of 25 g/t; 90 % Recoveries.

  • 18,250 Oz. Gold Produced through June 30, 2006; Overall Average Grade of Approx. 20 g/t;  Average Production Cost of Approx. $ 175 / Oz.

  • Transitioned from Pilot Production to Exploration in 2006 to Focus on Drilling and definition of resources.

  • Reported Production of 1,000,000 OZ. AU with Bonanza Grade Gold values through 1910.

  • >+ 3 MILLION OZ. Gold Potential.

  • Approximately 1,350,000 Oz. AU (DynaResource, Inc. Company "In-House Estimate of Resource"; estimated from all drilling results through March 31, 2011).  (In-House Company Estimate is NOT a NI 43-101 Compliant Mineral Resource).

  • Property fully acquired (approx. $ 3.5 M. US.).

  • Surface Rights Agreement Completed.

  • $ 2 Million USD Exploration Program Completed. (1997-1998).

  • $ 18 Million USD Exploration Programs Completed (2007 - March 31, 2011).

  • Confirmation of Significant Vein Deposits; With Bonanza Gold Grades (see Maps and SJG Drill Summary Files):

    • Tres Amigos/La Cecena; La Cecena/Los Hilos; Los Hilos/Santa Rosa; Total 1.4 Km. Strike Length; Potential + 400 M. Down Dip; Potential + 1,000,000 Oz. AU;

    • San Pablo; Recent High Grade Production; San Pablo Ore Shoot confirmed over 500 Meters Length and + 400 Meters Down Dip; Average Grade of + 8 g/t.; Potential + 500,000 Oz. AU;

  • *** (Current San Pablo Strike Length of 750 M. and 500 M. Down Dip):

    • La Union / Veta Tierra; La Union / La Parilla; La Union / La Prieta; Potential + 400 M Down Dip; Potential + 250,000 Oz. AU; Current 400 M Strike Length by 350 M Down Dip;

      Palo Chino; Potential surface mineable; Potential + 400 M. Down Dip; Parallel to La Purisima; Current Strike Length of 270 M and Down dip of 180 M.

    • La Purisma; Past Production 470,000 ounces Gold at Average Grade of + 66 g/t.; Potential + 500,000 Oz. AU;

    • ** (Current Strike Lenngth of 720 M and 420 M Down Dip):

      La Prieta; Past production 250,000 ounces gold at average 0.9 oz/ton; Additional Flat Zones Potential;

    • Argillic Zone; (Bulk Mining Potential).

    • Location of Bulk Tonnage potential at Palos Chinos; (15 meters @ 3 grams/ton; 7m @ 7 grams/ton).

* Overall Production Costs Projected at < $400. / Oz.; at 2 g/t cut off.

* Metallurgy Program Completed:

  • Confirmed 95% recoveries in metallurgical testing and in pilot production operation.
  • Basic Gravity / Flotation circuit.
  • $18 M. USD., 3 Phase Exploration / Drilling Programs; Funded Pursuant to the "Earn - In Agreement" signed on September 1, 2006; with Goldgroup Mining Inc.,Vancouver, BC. ("Goldgroup"):
    • $ 3,000,000. USD; Funded with 5% of the Shares of DynaMexico issued to Goldgroup.
    • $ 3,000,000. USD; Funded with additional 10% (Total of 25%) of the Shares of DynaMexico issued to Goldgroup.
    • $ 12,000,000. USD; Funded with and additional 25% (Total of 50%) of the Shares or DynaMexico issued to Goldgroup;

Pursuant to the Earn In / Option Agreement: Between DynaResource, Inc. and; DynaResource de Mexico, SA. De CV. ("DynaMexico);  W/ Goldgroup Mining, Inc.,  Vancouver, BC. Canada ("Goldgroup");  Gregg Sedun - Chairman; Keith Piggott - CEO;

  • Goldgroup will Acquire Shares of DynaResource de Mexico (“DynaMexico”), the Majority Owned Subsidiary of DynaResource, Inc. (DYNA USA).
  • $ 3 M. Expended at SJG, Within 18 Months of September 15, 2006, will acquire 15 % of the Shares of DynaMexico; funded and Shares issued.
  • Additional $ 3 M. Expended at SJG, within 36 Months of Sept. 15, 2006, will acquire an Additional 10 % of the Shares of DynaMexico; funded and Shares issued.
  • Additional $ 12 M. Expended at SJG, within 54 Months of Sept. 15, 2006, will acquire an Additional 25 % of the Shares of DynaMexico. TOTAL of $ 18 M funded and expended at SJG, within 54 Months of Sept. 15, 2006, will acquire 50 % of the Shares of DynaMexico; funded and Shares issued.
  • There will be No Change to the Board of Directors of DYNA USA; but One Person of Gold Group will be named to a Three Member Board of DynaMexico;  K.D. Diepholz remains as President of DynaMexico.
  • A Management Committee ("SJG MC") will be formed to Approve the Expenditures ($ 18.M.); thru a Segregated Account of DynaMexico;  2 persons of Goldgroup will be named, One Person of Dyna;  The SJG MC will report to the Board of Directors of DynaMexico; and will approve expenditures from a segregated Account of DynaMexico.
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