Dana Resources Technical Update on Collota 1.17 Million Ounce Gold Deposit
August 26 2009 - 8:30AM
Marketwired
Dana Resources (OTCBB: DANR), a US-based precious metals
exploration and development company, is pleased to announce the
initiation of the production program at its Collota gold deposit.
Dana Resources currently owns and operates seven mining projects
located in Peru's most prolific mining regions.
The Collota Gold Deposit 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.
Dana Resources currently plans to produce gold for sale by 2012.
Under the proposed model, permitting all zones are to commence
shortly. The permitting process is expected to run 12 to 18 months
and production setup time is expected to run 18 to 24 months.
A neighbouring company, IRLS MINERA, successfully put its
deposit into production using the same model after raising $20
million. Their deposit is 40 percent smaller than Dana Resources'
Collota deposit.
Dana Resources plans on processing the oxide zone first due to
the low cost open pit heap leach process. Initially, Dana Resources
expects to net $15 per tonne of ore. The Collota gold deposit oxide
zone has 27 million tonnes available to be processed using a
cut-off grade of 0.25 grams per ton. At this cut-off, Dana
Resources will net over $400 million profit from the oxide zone.
The sulphide zone has over 13 million tons ready to be processed
with expectations to net approximately $150 million profit.
The Collota gold deposit estimated resource totals 1,170,000
ounces of gold, equivalent to a current gross in-situ value in
excess of $1 Billion.
Dana Resources is anxious to commence the production program at
Collota. The Board of Directors commented, "We are very excited to
initiate our production program at Collota. As previously stated,
our plan is to simultaneously increase the size and grade of the
Collota deposit and continue permitting the project for production.
We believe with further drilling, the Collota deposit could reach
upwards of 3 million ounces of gold."
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.
Contact: Len De Melt Dana Resources www.danaresources.com Email
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