Dana Resources' Flagship Gold Deposit's In-Situ Value Surges Over $1.25 Billion
March 01 2010 - 12:28PM
Marketwired
Dana Resources (OTCBB: DANR) (FRANKFURT: OD0), a US-based precious
metals exploration and development company, is pleased to announce
that the strong global demand for gold and precious metals is
driving a major increase in the value of its proven gold deposits.
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.
The Collota gold deposit estimated resource totals 1,170,000
ounces of gold, equivalent to a current gross in-situ value in
excess of $1.25 Billion. Efforts are underway to increase the size
of the Collota Deposit to 3,000,000 ounces of gold. At recent
global gold prices, Dana Resources can potentially reach in-situ
levels close to $4 billion ($USD).
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 over $18 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 over $150 million profit.
Gold is priced over $1100 USD per ounce due to the global demand
for the precious metal as a hedge to inflation and the weak U.S.
dollar. Further, the consumption of gold from India and China has
rebounded sharply over the last two quarters. This bullish
investment climate is driving the demand for gold bullion and the
stock of gold companies.
Mr. De Melt, President of Dana Resources comments,"We expect the
global appetite for gold and precious metals to directly benefit
Dana Resources due to the Company's proven gold deposits and active
silver production project acquisition program. It is a great time
to be a gold and silver company."
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 Email
Contact
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