Dana Resources Acquires 1.17 Million Ounce Advanced Stage Collota Gold Deposit in Peru
July 29 2009 - 8:18AM
Marketwired
Dana Resources (OTCBB: DANR) (FRA: OD0), a US-based precious metals
exploration and development company, is pleased to announce that it
has successfully acquired the advanced stage Collota Gold Deposit
in Peru. Dana Resources currently owns and operates seven mining
projects located in Peru's most prolific mining regions.
The Collota Gold Project is located in Northern Peru in the
region of Ancash on the eastern side of the Cordillera Negra,
(Black Range Mountains). It is 45km south of the city of Huarez.
Elevation ranges from 4,100m to 4,600m.
The Collota Gold Project is a high-sulphidation type epithermal
gold deposit, positioned in the same trend as Barrick's world
famous Pierina mine (originally hosting over 5.2 million ounces of
gold and producing as much as 500,000 ounces of gold in 2006).
Barrick's Pierina mine is near the end of its resource base. Dana
Resources' Collota Gold Project consists of six claims for a total
of 4,695 acres.
The Collota Gold Deposit is defined by 83 drill holes completed
by Buenaventura Mining for a total of 5,500 meters of reverse
circulation and diamond core drilling, identifying an initial gold
deposit in 281.7 acres. The target area is characterized by intense
vuggy silica, quartz-alunite and argillic alteration. The
alteration is hosted in the Calipuy group, a suite of volcanic rock
characterized by basal andesitic lavas overlying rhyodacitic pumic
and lithic tuffs. This particular geology is associated with
epithermal gold deposits similar to Pierina and Yanacocha mines.
This host rock is identical to Barrick's Pierina deposit. Drilling
has indicated attributable resources of 112 million tonnes, defined
in two blocks:
Oxide Zone - 65 million tonnes with 0.375g/t gold, containing
780,000 oz gold.
Sulphide Zone - 47 million tonnes with 0.26 g/t gold, containing
390,000 oz gold.
The current estimated resource totals 1,170,000 ounces of gold,
equivalent to a current gross in-situ value in excess of $1
Billion. Dana Resources plans to mine the Collota Gold Project as
an open-pit mine to a maximum of 50m in depth. The estimated
operation costs are approximately $400 per ounce. Further, this
geological belt typically hosts economically significant silver
resources.
Dana Resources is very pleased and excited to complete the
acquisition of such a substantial and prolific gold project. The
Board of Directors commented, "This is a significant milestone for
the Company. Our plan is to simultaneously increase the deposit at
Collota and continue permitting the project for production. With
only 10% of the Collota Project explored, Dana is confident that
there exists a multimillion ounce gold deposit. Dana Resources is
confident that this acquisition will yield a significant positive
cash flow for Dana Resources and its shareholders upon commencement
of commercial production."
With some of the richest mineral reserves in the world, Peru is
one of the highest producing countries of precious & base
metals in Latin America. Previously inaccessible regions are now
becoming available through modern technology and equipment, making
the high diversity of marketable minerals an extremely attractive
prospect. In total, Peru holds about 16 percent of the world's
known mineral reserves.
About Dana Resources
Dana Resources is a precious and base metals exploration company
with offices in the United States and Peru. Dana's management team
possesses local knowledge, extensive international connections, a
wealth of experience and technical expertise in mining, mining
finance, exploration and production. Dana Resources has acquired a
portfolio of gold, silver and other precious & base metal
properties located in Peru's most prolific mining regions. With
Peru growing as a producer of gold, silver and other metals on the
international market, Dana Resources is well positioned to
capitalize on the escalating global demand for commodities. The
management team and Directors are committed to creating value for
their shareholders and to the long-term success of Dana
Resources.
Forward-Looking Statements
The statements contained herein which are not historical are
forward-looking statements that are subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed in the forward-looking statements, including,
but not limited to, certain delays beyond the company's control
with respect to commencement of drilling operations, concentration
in mineral deposits, delays in testing and evaluation of ore
samples, and other risks detailed from time to time in the
Company's filings with the Securities and Exchange Commission.
On Behalf of the Board,
Len De Melt
Dana Resources
www.danaresources.com
info@danaresources.com
Contact: Len De Melt Dana Resources www.danaresources.com Email
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