TORONTO (miningweekly.com) – Vancouver-based Dynasty Metals & Mining has begun commissioning the gold processing plant at the company's Zaruma mine, in south-western Ecuador, the firm announced on Wednesday.

Dynasty resumed work on the plant after Ecuador passed a new mining law in January, replacing the mandate that ordered a suspension of all mining and exploration work in the country last year.

The plant will be commissioned in phases, starting with the crushing section which is currently being tested.

The ball mills will be tested later this month and, by the end of the month, the company expects to run and test the full circuit.

Mine development is also ongoing, and the company has opened two declines, from which it is mining material.

A third decline is under construction, and the company will speed up mining and delivery of ore to the plant in time to meet its construction schedule, Dynasty said.

Plant commissioning and mine development will continue for about three months, after which the plant will run at a rate of 800 t/d, or 300 000 t/y.

Annual gold output is estimated at 100 000 oz/y.

However, except for the wet section, the plant actually has an installed capacity of around 800 000 t/y, which would enable Dynasty to expand output at a relatively low capital cost.

It also enables the company to process material with lower-than-planned resource grades to generate additional ounces in a high-gold price environment.

Shares in Dynasty rose 4,08% on Wednesday, to C$5,10 apiece by 13:18 in Toronto.

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