03:55 PM EDT, 10/11/2018 (MT Newswires) -- Dynacor Gold Mines Inc. (DNG.TO) -- which was up 6% at last look -- and its Swiss partner PX Precinox completed Thursday their first large-scale social impact project under the PX Impact label focused on artisanal mining communities in Peru.

In September 2018, the inauguration of a US$60,000 Phase 1 project took place in Secocha, Southern Peru. This project focused on education combining the construction of two laboratories -- one for general science and one for computer sciences. Phase 2 of the project consists of setting up a school library and improving the sanitary and sports facilities at the school at Secocha.

According to a statement, this PX Impact project as well as the projects that are in the pipeline are financed from the sale of responsible gold under the PX Impact label in Europe. It said a small premium is paid by a growing number of supportive firms from the fine luxury jewelry, watchmakers and banking sectors. Thursday's statement added these firms wish to start incorporating the use of responsibly sourced traceable gold that is produced from small-scale artisanal miners. One hundred percent of the premiums paid are used in the projects. There are no administrative fees, and the two partners jointly assume the overhead.

"This business to business approach in the gold supply chain is the first of its kind and will greatly benefit the small-scale mining communities in Peru that supply the gold mineralized ore," the statement said.

Furthermore, the statement said, this "well controlled, traceable and responsible gold supply chain" from the producer to the end-user significantly reduces the use of mercury to extract gold from the ore mined by artisanal miners and consequent widespread environmental contamination in particular of water resources. Artisanal miners in Peru use 1 gram of mercury to extract 1 gram of gold. No mercury is used to extract gold in Dynacor' processing plant resulting in a net gain for the environment.

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