DynaResource technical report validates 250000oz of gold and significant upside

DynaResource, Inc. (OTCQX: DYNR) has released its S-K 1300 Technical Report Summary for the San Jose de Gracia mine in Sinaloa Mexico. The Report includes the Company’s Initial Mineral Reserve Estimate, which outlines a high-grade Proven and Probable Mineral Reserve of 250,000 gold ozs for the San Jose de Gracia mine. This initial Mineral Reserve Estimate and Report was prepared by the independent firm P&E Mining Consultants Inc (P&E), with metallurgical test work completed by Sepro Systems Inc (Sepro) laboratories in Vancouver, B.C, and process plant review and operations aspects by D.E.N.M. Engineering Ltd. These independent groups of Qualified Persons have reviewed and approved the contents of this news release. The Report was filed by the Company with the Security and Exchange Commission on EDGAR, on May 19, 2025.

Highlights Include:

• Proven & Probable Mineral Reserves of 1,607 k tonnes at 4.91 g/t gold, totaling 253,000 gold ounces (see Table 1).
• Indicated Mineral Resource of 286 k tonnes at 6.74 g/t gold and Inferred Mineral Resource of 97 k tonnes at 4.37 g/t gold. (see Table 2).
• Life of Mine of 7-years based on current Mineral Reserves with excellent potential to extend along strike and adjacent to the existing underground mine infrastructure and in the wider San Jose de Gracia mine property.
• After-tax NPV of the Project is estimated at $84.4 M ($110.0 M pre-tax) under baseline scenarios of 5% discount rate and $2,500/oz Au. At a $3,000/oz gold price the after-tax NPV is estimated at $133.3 M ($183.6 M pre-tax).
• An Operating Cash Cost of $1,327 (US$/oz Au Eq) and an All-in Sustaining Cost of $1,720 (US$/oz Au Eq).
• Significant Upside – Gold price sensitivity with conservative pricing assumption ($2,500 oz Au ~25% below current spot gold price) used in the Report.
• Growth Potential – Mineral Reserves / Mineral Resources defined for only three of the mineralized structures in the San Jose de Gracia mine property, which historically hosted mining on a total of 20 discrete mineralized structures.

Rohan Hazelton, President & CEO DynaResource, stated, “We are pleased to release an Initial Mineral Reserve and Mineral Resource Estimate for San Jose de Gracia mine indicating at least a 7-year mine life based solely on Mineral Reserves. These 250,000 ozs of high-grade gold Mineral Reserves are defined for only three of the mineralized structures (Tres Amigo, San Pablo and Mochomera). Part of the optimization program of the San Jose de Gracia mine is establishing long-term mine planning and quantifying the enormous potential and upside. Recently targeted exploration development drifting has also led to encountering three new mineralized veins; two at Tres Amigo mine and one at Mochomera, which are currently being evaluated as potential additional high grade ore sources. In addition to exploring the extensions to existing orebodies and mineralized structures immediately adjacent to the established mine infrastructure, the Company is planning a significant diamond drilling campaign on additional targets in the San Jose de Gracia mine property in the latter half of this year.”

Mineral Reserves

The Mineral Reserves and Mineral Resource are as follows.

Table 1: Mineral Reserves for the San José de Gracia Project

Notes:

1. Mineral Reserves are based on Measured and Indicated Mineral Resource Classifications only.
2. Mineral Reserves are reported using the 2014 CIM Definition Standards and 2019 Best Practices Guidelines and have an effective date of March 24, 2025.
3. Mineral Reserves are defined within mine plans and incorporate mining dilution and ore losses.
4. Underground Mineral Reserves are based on metal price of US$2,500/oz Au and are constrained within a mine design, and use process plant recoveries varying between 76-80% for Au
5. An Underground economic cut-off value of US$140/t is estimated to differentiate ore from waste and is based on cost assumptions of US$99/t for mining US$23/t processing, US$18/t site general and administrative. Mineralized material above a cut-off of $90/t that is planned to be mined adjacent to economic material is identified as Marginal ore, as the revenue it generates exceeds the additional costs associated with haulage, processing and backfilling the material versus leaving it in the stope as backfill.
6. Smelter terms result in an average value paid per ounce of gold of 90.53% of the value of the gold in concentrate, after accounting for all contract terms.
7. The provided LOM block models do not track deleterious elements noted in the smelter terms, which could reduce the payable value of the concentrate. However, DynaResource asserts that no penalties of this nature have historically been assessed on any payment invoice from the existing concentrate buyer.
8. Totals may not sum due to rounding.
9. Mineral Reserves derived from marginal material total 312 kt at 2.03 g/t Au for a total contained metal content of 20.3 koz.

Mineral Resources

Table 2: Mineral Resources for the San José de Gracia Project

Notes:

1. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
2. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It can be reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
3. The Mineral Resource is estimated using Subpart 229.1300 – Disclosure by Registrants Engaged in Mining Operations.
4. Mined areas as of December 31, 2024, were depleted from the block models.
5. Mineral Resources are exclusive of Mineral Reserves.
6. All numbers are rounded.

Economic Analysis

For the current 7 year mine life exploiting the Tres Amigo, San Pablo and Mochomera orebodies the following was the key economic results from the study.

Table 3: Key Economic Parameters

Sensitivity Analysis

The after-tax NPV sensitivities to ±20% changes in gold metal price, gold head grade, gold metallurgical recoveries, OPEX and CAPEX are presented in Figure 1 and Table 4 below. The after-tax base case NPV’s is most sensitive to the gold metal price followed by gold metallurgical recoveries and gold head grades followed by OPEX, and then CAPEX.

Figure 1: After-Tax NPV @ 5% Sensitivity Parameter Values

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/5274/252701_dynrfig1.jpg

Table 4: After-Tax NPV @ 5% Sensitivity Table

The San Jose de Gracia mine exhibits strong leverage to gold prices, especially with long-term gold price expectations exceeding the base case assumptions made in this report. At current spot prices above $3,200 per gold ounce, after tax NPV would be expected to materially exceed $133.3M.

Exploration

DynaResource has spent the past six months compiling and interpreting all the geological, geochemical, geophysical, and historical mining data from the San Jose de Gracia mine property for inclusion into the Report. The Report recommends that ~15,000 m of underground drilling be completed to explore for new high-grade mineralization, confirm mineralized vein continuity, and convert Inferred Mineral Resources to Indicated and Measured Mineral Resources in the three main Tres Amigos, San Pablo and Mochomera mining areas. This work should include delineation of new mineralized structures adjacent to the active mining areas. The Company is currently exploration drifting on 4 new mineralized structures adjacent (<40 metres from active mining areas) and is planning an exploration drilling program in the latter half of 2025.