Planned to be built on a 135 hectare site, the facility will be located on a mining concession, which Dynacor purchased in March 2011.
Construction of the plant is estimated to cost around $10m.
The plant will have an initial ore processing capacity of 300 ton per day (tpd) and can be expanded to 450tpd and then to 600tpd by adding additional processing lines and ball mills.
The project cost includes $2.3m spent on a 5km road connecting the site to the Pan-American South highway, a power line connected to the National Power grid, water wells and water storage tanks as and a pumping station; a perimeter security fence and gate; housing facilities for employees and construction crews; and milling equipment including two ball mills.
Dynacor expects the Chala processing plant to create value for its shareholders as it will benefit from increased production volume and reduced operating costs.
