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Proven Gold Reserves Serve as Bedrock
Foundation for Dutch Gold Resources
by Greg Moses – AllPennyStocks.com News Reporter
May 23, 2007 (AllPennyStocks.com Media Inc.) – Southern
Oregon, along the California border, has a long history of
gold mining, with 6,000,000 ounces produced since the mid
1800’s.
A key center of the Oregon gold area lies in Josephine County,
which has been a significant gold region, since gold was first
discovered there in 1851. A number of Josephine’s nuggets in
the 1800’s were described as the size of “chicken eggs”.
Josephine County is home to two successful past producing gold
mines; the Benton Mine and the Gold Bug Mine.
One emerging gold mine operator and exploration and
development firm, Dutch Gold Resources, Inc.
(Pink Sheets: DGRI) is moving rapidly forward to exploit the gold
claims and properties at these two mine sites. The Benton Mine
has proven and probable gold reserves in excess of 235,000
ounces. The Gold Bug Mine produced an average of two ounces of
free gold per ton generating $750,000 of income when gold was
at $20 an ounce.
Earlier this year, Dutch Gold Resources, Inc. acquired Dutch
Mining, LLC. As a result of the transaction, Dutch Mining is
now a subsidiary of Dutch Gold Resources, Inc. The Company
appears to be following a sound strategy to focus on
overlooked, yet high potential properties, that can be quickly
and cost effectively brought into operation.
Dutch Mining, founded in 1994, is engaged in the mining and
processing of proven gold reserves in North America. DGRI
currently operates two past producing mines in southwestern
Oregon, consisting of the Benton Mine which it leases, and the
adjacent Gold Bug Mine, which it owns.
The company presently has 24 gold-mining claims, including 8
patented claims and 16 claims located on U.S. Forest Service
land, associated with the Benton and Gold Bug Mines.
The Gold Bug Mine was mined up until 1942, and is set to
expand operations by mid year 2007. The company also operates
the only large scale mill in Oregon, adjacent to both the
Benton and Gold Bug Mines, with a capacity to process 150 tons
of ore per day.
Key to note here is that the Benton Mine Project is not a
start up operation by a currently producing mine. Dutch Gold
is currently operating the only commercial gold mine in
Southern Oregon.
Over the past years, investors in Dutch Mining have already
invested $9 million in business and equipment improvements at
the mine and the mill. This investment now positions the
Company for expanded operations. Simply put, the Benton Mine
is an advanced stage exploration and production project, which
has already started delivering gold concentrate.
From 1994 to 1996 Dutch Mining LLC invested over $4.5 million
exploring and developing the Benton Mine and undertook a
feasibility study. In the process, all the necessary permits
were awarded to operate the mine and build an ore mill to
produce the gold ore concentrate.
In January 2005 Dutch Mining reopened the Benton Mine and
performed a full rehabilitation of the mine, including all
equipment. From January 2005 to now, an approximately $4.5
million of additional investment was made into the business
operations. Today, investors benefit from the substantial
financial investment already made in support of exploration
and development at the site.
The Company increased production capacity at the gold ore
mill, in Grants Pass, OR. DGRI increased production capacity
at the mill by approximately 175 percent. The facility is
designed to process 150 tons of ore per day, but can be
increased to 300 tons as needed.
Situated in Southern Oregon, the mill can process ore from
additional regional mining sites. This strategic location
allows the Company to reach out and capitalize on
opportunities in Northern California, Nevada, and Montana.
In addition, the Benton Mine is up and running with Its 2007
Production program. The Company has produced month over month
increases in ore production. With mine improvements that have
been made, and the addition of a larger staff of mining
personnel, the Company anticipates significantly higher ore
production throughout the balance of 2007.
In March 2007, the Benton Mine produced, a higher than
expected, volume of 985 ounces of gold. This result was a
combination of enhanced production yields and higher than
projected grade ores. Further, the Company has set some
aggressive production goals. Dutch Gold estimates production
of approximately 20,000-25,000 oz. of gold in 2007.
By the second quarter of 2008, the Company believes that it
will have more than doubled its 2007 production. Now that the
Benton Mine is in full production, the Company will begin
further exploration and development at the Gold Bug Mine.
All being said, Dutch Gold Resources Inc. is definitely a
Company to watch. As an established gold mining firm, Dutch
Gold has the ability to ramp up operations in 2007 and 2008,
and this potential for business acceleration, is not tied to
additional capital needs.
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Although the majority of
AllPennyStocks.com reports are independent, it has received
compensation for carrying the report on Dutch Gold Resources
Inc, the compensation two thousand five hundred dollars by a
non-affiliated third-party, Engle Group . This creates an inherent
conflict of interest and readers are encouraged to view the
main disclaimer at
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