The company said its Galam pilot plant in southeastern Senegal’s Kédougou region is more than 95% complete and remains on schedule for its first gold pour in August.
Commissioning of the laboratory and front-end processing facilities has been completed, while testing continues across the grinding, leaching, refining and Merrill-Crowe circuits used to recover gold from processed ore.
Dynacor has also assembled an initial stockpile of gold-bearing ore purchased from local suppliers and plans to begin buying from additional supplier groups in August. Recruitment of plant operators and maintenance personnel is underway.
The development moves Dynacor beyond construction and into the first practical test of a business model it hopes to replicate across Africa.
“When fully ramped-up, Galam will act as a blueprint for future commercial plants in Africa, which is expected to be the key driver of our expansion strategy,” Dynacor President and Chief Executive Daniel Misiano said.
A different type of gold company
Unlike conventional mining companies, Dynacor does not depend primarily on developing and operating its own large gold mines.
Its model is built around buying gold-bearing ore from formalised artisanal and small-scale miners, testing the material, processing it and selling the resulting gold.
Dynacor has used the model at its Veta Dorada operation in Peru, where it has built an ore-purchasing and processing network around small-scale suppliers.
The Galam facility is designed to process up to 50 tonnes of ore per day. Although small by industrial mining standards, the pilot plant will test whether Dynacor can reproduce its Latin American supply model within West Africa’s more informal and highly competitive gold market.
Success would give the Canadian company a platform for developing larger commercial plants and reduce its dependence on Peru for future growth.
Dynacor has already begun discussions with Ghana’s Gold Board over a possible entry into the country, although no final investment decision has been announced. Ghana is one of Africa’s leading gold producers and has been restructuring the way artisanal gold is purchased, exported and regulated.
Dynacor is entering Africa as governments across the continent tighten their control over artisanal gold production, trading and exports.
The sector supports millions of livelihoods but remains difficult to regulate. Large volumes of gold are produced outside formal reporting systems, depriving governments of taxes, royalties and foreign-exchange earnings.
SWISSAID estimated that at least 435 tonnes of gold worth about $31 billion left Africa undeclared in 2022. More than 70% of artisanal gold produced on the continent that year was not officially declared, according to the organisation.
Senegal faces the same problem. An estimated 36 to 41 tonnes of artisanal gold worth between $2.38 billion and $2.71 billion were smuggled out of the country between 2013 and 2022, according to figures attributed to SWISSAID.
Much of that production came from artisanal mining regions such as Kédougou, where Dynacor’s plant is located.
The plant therefore sits at the intersection of two trends: governments seeking greater control over gold flows and international companies searching for ways to organise and profit from artisanal production.
By purchasing ore through a documented industrial supply chain, Dynacor could help move some production into the formal economy, improve traceability and create a clearer basis for collecting public revenue. But those benefits are not automatic.
The company will still have to persuade miners to sell through its system rather than to informal traders who may offer faster payments, fewer compliance requirements or more attractive prices.
Dynacor has said its model provides a formal market for artisanal producers, but the commercial terms offered to Senegalese suppliers will be central to its success.
The plant will need a consistent supply of ore with sufficient gold content to operate economically. Its impact on miners will also depend on how prices are calculated, how quickly suppliers are paid and how much of the final value remains with local producers.
Those questions will determine whether Galam becomes a scalable African business or remains a limited pilot project.
Alongside its African push, Dynacor is rehabilitating the Svetlana processing plant in Ecuador.
The company said rehabilitation has reached about 40% completion, with work progressing on its crushing, milling, electrical and leaching systems. Dynacor is targeting a restart in the fourth quarter of 2026.
The company reported record first-quarter revenue of $154.1 million as higher gold prices and its core Peruvian operations strengthened its financial position. Dynacor describes itself as a processor focused on gold sourced from artisanal miners rather than a traditional mine developer.
The Senegal project is therefore more than a small processing plant. It is the first test of whether Dynacor can convert its experience in Peru into a wider African growth strategy, and whether formal processing can compete successfully for ore within one of the world’s largest informal gold economies.