Project To Construct Gold Ore Processing Pilot PlantIn Kedougou Region

MONTREAL - Dynacor Group Inc. reported on the project to construct a gold ore processing pilot plant to produce gold from ore purchased from small artisanal miners, with an initial capacity of 50 tm/d in the Kédougou region, in eastern Senegal. The objective of this pilot plant is to establish the financial and operational parameters in West Africa in the context of its due diligence review which will enable it to make an investment decision for larger commercial operations in this region of Africa.

With this in mind, Dynacor Group established in 2023, Galam SA, a wholly owned Senegalese subsidiary, which will develop the gold ore processing pilot plant project. In 2024, Dynacor, through its subsidiary Galam SA, acquired a local company holding a mining concession covering an area of 50 hectares with government operating authorization which will be used for the construction of the pilot plant.

Some small local companies, owners of mining projects in development around the Galam property, have demonstrated an interest in supplying ore to a processing plant established in the region. As part of its due diligence process, an environment impact study was launched at the beginning of the year for the realization of this project and should be finalized in December of the current year. Certain metallurgy and engineering studies were also launched in parallel. The Company plans to begin construction of this new plant during the first half of 2025.