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American Company Spotlight

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Dhanoa Minerals Ltd. Website:
Click Here |
Information As Of May 25,
2007 |
| Exchange:
OTC:BB |
Market
Cap:
41 Million |
| Outstanding Shares:
41 Million |
52 Low / High:
$0.51 / $3.60 |
|
Price
May 25, 2007:
$1.00 |
DHNA Recent Stock Quote and News:
Click Here |
“Even if Gold
remains flat, Dhanoa Minerals is confident in projecting $40
Million pre-tax revenue per year (100,000 ounces at $680).
They offer a tremendous upside and are worthy of a buy.”
Mike King, Director - Princeton Research Inc.
Overview
Dhanoa is a production stage company formed for the
purpose of acquiring, exploring, and developing natural
resource properties. Activities during the production and
exploration stage include further development of the
Company's business plan and raising capital. The Company has
recently initiated a new program to evaluate undervalued
assets for potential addition to its mineral claim
portfolio.
Investment Highlights
- The company's three mines sit on the western end of the Ecuadorian
metallurgical gold belt, which holds over 10 million ounces of gold.
- Confirmed independent random sample testing of the company's three
gold-producing mines show potential yields above the industry standard.
- The acquisition of the Paraiso producing gold mine shows significant upside
exploration potential. Currently the mine has existing production of
approximately 2,000 ozs of gold monthly. Dhanoa will be implementing plans to
increase gold production to 15,000 ozs per month in 2007 by upgrading the
current facilities and technology.
- Princeton Research, Inc. sets Dhanoa price target at $4 within the next 3
months.
- Planned listing on AMEX and secondary IPO on Toronto Stock Exchange to
increase visibility and expand investor access.
- Modernization project includes increased labor force, underground
expansion , open pit development, new processing plant.
- Acquisition of new processing plant projected to increase efficiency from
50% to 90% recovery rate.
- Projected production levels: 100,000 ounces of gold for the first year of
production and 250,000 by year two.
- Installation of satellite cameras increase mine security and provide
streaming video on the company website.
- Over the last six months, Dhanoa has raised $5 million for daily
operations and upgrades for its mines.
- Geology in Ecuador is world class and hosts similar mineralization as its
neighbours Columbia and Peru, which host significant mines and mining
districts.
- All three mines from the Bella Rica Property are situated in the western
end of the Ecuadorian metallurgical gold belt. From past production and actual
reserves, the region is projected to host over 100 million ounces of gold.
Dhanoa’s Current Operations
Dhanoa’s Bella Rica project consists of three mines in
Southwest Ecuador, with a current production cost of $280.00
per ounce. These mines currently operate at a cost of
$280.00 per ounce and are producing enough to reach 100,000
ounces of high grade gold in 2007. With gold at $680.00 per
ounce, this equates to $40 million dollars in revenue for
Dhanoa.
Dhanoa’s Property Study Results
Dhanoa’s Bonanza properties were most recently part of a
study performed by independent geologist Larry Sostad, an
expert in geophysics, mining exploration, geology, and
geochemistry. The random samples were taken using the
various tunnels at the company’s three gold producing mines
in southern Ecuador and then sent to an Assayers laboratory
in Canada where they were certified. Of these, the following
three were the most encouraging:
- A2709-2 238.20 Au g/tonne
- A2712-1 24.50 Au g/tonne 300.30 Ag g/tonne
- A2712 78.20 Au g/tonne 144.00 Ag g/tonne
The industry standard is approximately 20 g/ton. Reserve
estimates, resource samples and estimates are not Ni 43-101
certified.
Ecuador
Southern Ecuador has rapidly become an attractive choice for
mineral exploration/development companies. Permissive
geology in unexplored or under explored areas, a stable
mining code, an opportunistic labour pool, no restrictions
on capital flows, and relatively good infrastructure has led
to the recent interest in the country.
Compounding the new exploration interest in Ecuador is a
series of discovery/ development projects that have
potential to be world class. The most recent find is
Aurelian’s Fruta Del Norte epithermal gold discovery in
southeastern Ecuador. With less than 20 drill holes in the
discovery area ARU market cap is already at C$600 million.
This suggests to us the market believes ARU is on to a 5-6
million oz target (using US$100/oz Au). Corriente’s Mirador
Copper (Cu)-Gold (Au) project is 14km north of Aurelian’s new discovery and
based on current development plans could be operating by
2008, and within 18 months of start up producing about 250
million lbs of Cu/yr. In south central Ecuador, IAMGOLD is
developing its Quimsacocha high sulphidation Au project. The
company has outlined thus far a 2.8 million ounce gold
resource. The resource is open as evidenced by step out
drilling along strike and we expect an updated resource
calculation this fall. Preliminary mine plans suggest that
an open pit operation could produce about 230,000 ounces of
Au per year.
Bella Rica Property
Dhanoa's Bella Rica mine package hosts over 85,000 ounces of
gold and consists of the Bonanza, Gunanza and Mollopongo
Mines. All three mines are situated in the western end of
the Ecuadorian metallurgical gold belt. From past production
and actual reserves, the region is projected to host over
100 million ounces of gold.
A resource extraction estimate for three mines project first
year production (ending June 2008) at around 100,000 ounces
of gold, generating revenues of around $40 million, with
production costs at $280 per ounce. By the second year,
production is projected to reach 250,000 ounces of gold per
year. Even if gold remains at its current value , the
company is confident that it will generate gross revenue
totaling $170 million each year after year two of
production. By the third year, Dhanoa projects that its
properties will produce 300,000 ounces of gold per year,
resulting in revenues and profits of $204 million and $120
million, respectively.
In January 2007, Dhanoa entered into a purchase agreement to
acquire 80% of the ownership and capital of Promenasa, S.A.,
an Ecuador mining company for $2,400,000 and $5,000,000
shares of the restricted common stock at a deemed price of
not less than $3.00 per share. Dhanoa also agree to loan
$7,300,000 to Promenasa during a six month period after the
closing. This infusion of $7.3 million will be invested into
mine upgrades and operations to bring the mines up to a
profitable production capacity.
Paraise Property
Paraiso is located in the sector Paradise, Pueblo Nuevo of
the Canton Camilo Ponce Enriquez, County of the Azuay. The
property is approximately 150 km south of Guayaquil, which
has an international airport and seaport and 52 km from the
city of Machala and Port Bolivar.
Currently the mine has existing production of approximately
2,000 ozs of gold monthly. Dhanoa will be implementing plans
to increase gold production to 15,000 ozs per month in 2007
by upgrading the current facilities and technology.
The Paraiso mine has been worked for the last 25 years and
past production is estimated at 128,000 oz. of gold. The
mine has 7 principal veins, with the focus of current
activity on 2 of those veins. Reserves have been estimated
recently at approximately 2.5 million ozs of gold.
Located in Southern Ecuador, where exploration activities
have recently generated world class discoveries, such as
Aurelian Resources Inc. 189m @ 24g/t gold and 135m @ 9.78g/t
gold at its Fruta del Norte Project. This is one of the
biggest discoveries made in the last decade, which could
contain more than 11 million ozs of gold.
Geology in Ecuador is world class and hosts similar
mineralization as its neighbours Columbia and Peru, which
host significant mines and mining districts.
Ecuador has been previously under explored and developed,
political and economic advancement in Ecuador have provided
excellent opportunities for junior mining companies. Good
mining laws, access to labor and good infrastructures makes
Ecuador an excellent choice for exploration and development.
Growth Strategy
Dhanoa Minerals LTD is on schedule to complete its
acquisition of an 80% interest in three gold mining
operations in Southern Ecuador, referred to as the Bella
Rica project. The Guanache Mine is the lowest in elevation,
the Mollopongo Mine is at the top of the mountain, while the
Bonanza Mine is in between. The vertical extent is a little
more than 1000 feet, and the continuity of the gold vein
systems run horizontal as well as vertical. It has become
very clear that Dhanoa has established itself on favorable
ground for extraordinary expansion and development.
Part of Dhanoa’s growth strategy is to undertake underground
expansion, open pit development, and creating a centralized
modern treatment plant for the production of gold and
silver. Dhanoa anticipates the Bonanza mine to reach a rate
of 100,000 ounces of gold through the next 12 months and
then building to 300,000 ounces annually, as indicated by
increasing production levels already being achieved. The
goal is to produce 12 gr. per ton average in high grade
gold.
Dhanoa wants to continue to pursue new exploration interests
using revenues (projected at $ 40 MM for 2007) for
acquisitions and facility upgrades or installations. All the
properties, and most formidably the Bonanza mine, are also
located in an area where Dhanoa is strategically positioned
within an emerging gold arena of international stature.
They are actively employing state-of-the-art concepts for
production and security. In mines such as these, where
grades are high and the gold grains are visible, losses may
exceed 15%. By the end of June, they will be installing
cameras for 24X7 monitoring of their gold processing. Their
intent is to make the live camera feed available on-line
through their website as a means of providing security and
enabling shareholders to view the extent of the operations
up close.
Dhanoa’s Modernization of Operations
It’s expected that modernization will cost about $5 million
and be complete by the end of 2007. This upgrade process is
expected to increase production by 3x, meaning an increase
of revenue from these properties to roughly $120 million or
300,000 ounces by 2010.
Dhanoa’s Acquisitions
Expert evaluation from industry and regional professionals
are ongoing on properties that can contribute long term
quality production and revenue. Working with the benefits of
shareholders in mind, and cash obligations complete,
financing of such activities may be accomplished based on
revenue generated cash and stock.
Recent News and Press Releases
Dhanoa Minerals Projects Annual Revenues of $170
million by Second Year of Production (Fri, May 25)
Dhanoa Minerals Hires New Chief Financial Officer
(Fri, May 25)
Dhanoa Minerals Hires New President (Fri, May 25)
Dhanoa Appoints Daniel Kuhn as Consultant to the
Company (Wed, May 9)
Dhanoa Minerals Announces Installation of Cameras
(Tue, Apr 10)
Dhanoa Announces Production Plans (Thu, Apr 5)
Dhanoa Minerals Arranges U.S. $1.3 Million Financing
at $1.90 per Share (Wed, Apr 4)
Dhanoa Minerals Successfully Fullfilling Financial
and Operational Obligations (Tue, Apr 3)
Lee Andrew Balak - President
Daniel Kuln - Chief Operations Officer
William McNerney - Chief Financial Officer
Michael A. Dehn - Director
Contacts
Dhanoa Minerals Ltd.
1330 Martin Grove Road
Toronto, Ontario M9W 4X4
Phone: (416) 838-4348
Email:
info@dhanoaminerals.com
Website:
http://www.dhanoaminerals.com/
FORWARD LOOKING STATEMENTS
This report includes forward-looking
statements that reflect Dhanoa Minerals Ltd. current
expectations about its future results, performance,
prospects and opportunities. Dhanoa Minerals Ltd. has
tried to identify these forward-looking statements by using
words and phrases such as "may," "will," "expects,"
"anticipates," "believes," "intends," "estimates," "plan,"
"should," "typical," "preliminary," "we are confident" or
similar expressions. These forward-looking statements are
based on information currently available and are subject to
a number of risks, uncertainties and other factors that
could cause Dhanoa Minerals Ltd.'s actual results,
performance, prospects or opportunities to differ materially
from those expressed in, or implied by, these
forward-looking statements. These risks, uncertainties and
other factors include, without limitation, the Company's
growth expectations and ongoing funding requirements, and
specifically, the Company's growth prospects with scalable
customers, and those outlined above. Other risks include the
Company's limited operating history, the Company's history
of operating losses, consumers' acceptance, the Company's
use of licensed technologies, risk of increased competition,
the potential need for additional financing, the terms and
conditions of any financing that is consummated, the limited
trading market for the Company's securities, the possible
volatility of the Company's stock price, the concentration
of ownership, and the potential fluctuation in the Company's
operating results.
Disclaimer
AllPennyStocks.com feature stock reports
are intended to be stock ideas, NOT recommendations. Please
do your own research before investing. It is crucial that
you at least look at current SEC filings and read the latest
press releases. Information contained in this report was
extracted from current documents filed with the SEC, the
company web site and other publicly available sources deemed
reliable. For more information see our disclaimer section, a
link of which can be found on our web site. This document
contains forward-looking statements, particularly as related
to the business plans of the Company, within the meaning of
Section 27A of the Securities Act of 1933 and Sections 21E
of the Securities Exchange Act of 1934, and are subject to
the safe harbor created by these sections. Actual results
may differ materially from the Company's expectations and
estimates. This is an advertisement for Dhanoa Minerals Ltd. The purpose of this advertisement, like any
advertising, is to provide coverage and awareness for the
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