ATLANTA, GA -- (Marketwire) -- 05/30/12 -- Dutch Gold Resources, Inc. (OTCQB: DGRI) (PINKSHEETS: DGRI) (the "Company") today announced initial assay results from its joint venture in Nicaragua.
The samples represent preliminary verification sampling of key materials by Rauno Perttu, COO of the Company. He observed the collection of sample N-1 and took the other samples himself. He maintained a chain of custody until he shipped them for assay. Mr. Perttu brought back five samples, which were prepared by the laboratory, which took and fire assayed three splits of each sample to check for variance. Only gold and silver assays were run. A brief description, with results follows:
N-1 was a sample of the ore mined by artisan miners and sold to a local processer. This represents the material that the Company would expect to be processed in the joint venture operation. The assay values were higher than the reported recoveries of 0.4 ounce per ton to 0.7 ounce per ton reported in the current amalgamation recovery operation. It is unclear whether the sample was of higher grade than normal, or whether the difference represents poor production from prior recoveries.
N-2 was a select quartz sample from the same ore stockpile. The sample suggests the gold may be preferentially carried in the altered fines, not in the vein quartz.
N-3 was a sample of fines from the venture partner's trapiche, a type of grinding mill, which was gathered by the use of a strong magnet. The strong increase in silver content may represent the presence of a magnetic silver mineral.
N-4 was a sample of the tailings from the partner's operation. It would suggest strong recoveries, but the total sample was so small, that the number could be unrealistically low.
N-5 was a sample of the ore feed pile from the partner's operation. It verified the reported ore grade of the current operations.
DGRI NICA Ag: opt Au: opt 112309 N 1 A 0.98 0.930 112310 N 1 B 1.16 1.028 112311 N 1 C 1.12 1.022 112312 N 2 A 0.76 0.156 112313 N 2 B 0.78 0.170 112314 N 2 C 0.68 0.158 112315 N 3 A 5.30 1.114 112316 N 3 B 5.36 1.074 112317 N 3 C 5.22 1.068 112318 N 4 A 0.50 0.024 112319 N 4 B 0.32 0.014 112320 N 4 C 0.52 0.016 112321 N 5 A 0.44 0.468 112322 N 5 B 0.40 0.444 112323 N 5 C 0.62 0.494
Rauno Perttu, Chief Operating Officer of DGRI, said, "We are very pleased with these preliminary results, and plan an aggressive follow-up program to achieve the Company's goals for modernizing and expanding the current operation. This data, which confirms some of the earlier data, forms the basis for our expansion strategy with our partner. We are also beginning to see a path that may allow us to profitably clean up the environmental legacy of past operations."
About Dutch Gold Resources
Dutch Gold Resources, Inc. is engaged in the acquisition and development of gold properties in North America. The company's strategy is to focus on overlooked resources that have the potential to have a value creation event within 24 months of acquisition. The Company criteria call for a property to reach either near term production, or be a candidate for development through joint venture financing during the two years subsequent to acquisition. The Basin Gulch project Montana, the Jungo property in Nevada, and the Gold Bug Mine in Oregon comprise the Company's current portfolio, along with its previously announced joint venture in Nicaragua. The DGRI management team is composed of seasoned professionals with decades of experience in geology, and in mergers and acquisitions, as well as corporate finance. For further information, please see www.DutchGold.com.
This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. Actual events could differ materially and substantially from those projected herein and depend on a number of factors. Certain statements in this release, and other written or oral statements made by Dutch Gold Resources, Inc. are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond the Company's control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Important factors that could cause actual results to differ materially from the company's expectations include, but are not limited to, those factors that are disclosed under the heading "Risk Factors" and elsewhere in documents filed by the company from time to time with the United States Securities and Exchange Commission ("SEC") and other regulatory authorities.
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Cautionary Note to U.S. Investors
Dutch Gold Resources, Inc. is subject to the reporting requirements of the Securities Exchange Act of 1934, as amended ("Exchange Act"), and applicable Canadian securities laws, and as a result we report our mineral reserves according to two different standards. Canadian reporting requirements for disclosure of mineral properties are governed by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). The definitions of NI 43-101 are adopted from those given by the Canadian Institute of Mining, Metallurgy and Petroleum. U.S. reporting requirements are governed by the SEC Industry Guide 7 ("Guide 7"). These reporting standards have similar goals in terms of conveying an appropriate level of confidence in the disclosures being reported, but embody different approaches and definitions. Under Guide 7, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made.
We disclose mineral reserves and mineral resources according to the definitions set forth in NI 43-101 and modify them as appropriate to confirm to Guide 7 for reporting in the U.S. In our Form 10-K, filed with the SEC, we use the term "mineralized material" to describe the amount of mineralization in mineral deposits that do not constitute "reserves" by United States standards. This is substantially equivalent to the total measured mineral resources and indicated mineral resources (disclosed as inclusive of reserves), which we disclose for reporting purposes in Canada. U.S. investors are cautioned that, while the terms "measured mineral resources," "indicated mineral resources" and "inferred mineral resources" are recognized and required by Canadian securities laws; rules adopted by the SEC do not recognize them. U.S. investors are also cautioned not to assume that any measured or indicated resources will ever be converted into Guide 7 compliant reserves.
The United States Securities and Exchange Commission limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. We use certain terms on this web site, such as "reserves," "resources," "geologic resources," "proven," "probable," "measured," "indicated," or "inferred," which may not be consistent with the reserve definitions established by the SEC. U.S. investors are urged to consider closely the disclosure in our most recent Form 10-K filed with SEC. You can also review and obtain copies of these filings from the SEC's website.
Dutch Gold Resources, Inc.