Discovery Gold Reviews Strategic Geologic Location and Gold Market
DENVER, April 2, 2013 /PRNewswire/ -- Last week, Discovery Gold Corporation (OTCQB: DCGD) (the "Company") posted the CNI 43-101 compliant Assessment Report for its Edum Banso Gold Project in Ghana (prepared by independent geologists from CME & Co who are highly experienced in Ghana); the Company also announced the trenching and initial drilling work program recommended in the Assessment Report to explore priority gold targets identified within Edum Banso's 8 km long geophysical gold anomaly, highlighted by historic gold in soil sampling and quartz outcrops reported by Newmont Gold and Xtra Gold in 2004 and 2008 when gold prices were below $1,000 per oz.
Discovery Gold's President, Steven Flechner, stated that, "As reflected in the Map reproduced in this PR, the Company's Edum Banso project is strategically located in the southern portion of the Ashanti Gold Belt in Ghana, which is one of the most prolific gold producing geologic belts in the world. Our new Assessment Report reflects that Edum Banso's geology and mineralization are similar to other gold deposits in the Ashanti Belt, including Golden Star's Father Brown gold mine producing on adjacent property to the southeast. In the opposite direction, to the southwest, beyond Castle Peak's gold projects, is the Nzema gold mine (acquired by Endeavor in 2011) reporting 2012 gold production of 100,000 oz. at cash costs of $722/oz. from some 3 million oz. of proven, indicated, and inferred gold."
Mr. Flechner noted that, "Notwithstanding the recent softness in the gold price and ongoing difficulty in financing early stage gold exploration, I believe that gold prices will remain strong and that investor or joint venture financing will become available to highly prospective gold exploration projects like Edum Banso because of its strategic geologic location plus bullish gold market factors and expert opinions, including those referenced below."
- The CEO of Goldcorp, one of the world's top ten gold producers, stated in an interview with the Wall Street Journal on March 19th that though gold "markets are depressed right now, and there are a lot of folks having a tough time raising money… (still) by the end of this year we will be higher than at the start of the year, and we will hit $2,000 gold" thereafter.
- A Bloomberg newswire article of March 21, 2013 reports that Indian gold consumption may rise to 960 tons in 2013, though consumption fell in 2012 as the Indian government raised import duties to try to dampen buying of foreign gold. Indians traditionally consider gold as basic wealth, with Indian homes estimated to hold some $950 billion of gold.
- An Arabian Money Financial comment of December 6, 2012 reports that China's Ministry of Industry and Information Technology announced that it expects Chinese gold consumption to surpass 1,000 tons by the end of 2015, which would be double China's domestic production expected to be less than 500 tons. "The impact of Chinese demand for an additional 500 tons of gold per annum on the gold market will be enormous. This is more than all the gold bought by global central bankers in 2012."
- Famous gold bull, Jim Sinclair, was precious metals advisor to the Hunt family when it had cornered the silver market, was general partner to two New York Stock Exchange firms, and is now CEO of Tanzanian Royalty Exploration Corp listed on the TSX and NYSE. Mr. Sinclair has recently predicted gold prices going over $3,500/oz. due to central banks printing more paper money to pay debts, and "on the back of (growing) Chinese demand" for gold.
Mr. Flechner concluded that, "Though the Company's stock is currently trading for pennies per share, it still expects to carry out the exploration trenching and drilling program recommended for its Edum Banso gold project as soon as requisite financing and permitting can be accomplished. Results of that work are expected to significantly alter the course of Discovery Gold."
About Discovery Gold Corporation
Discovery Gold Corporation is an emerging U.S. based mineral exploration company. The Company's wholly-owned subsidiary, Discovery Gold Ghana Limited, currently holds a 95% interest in the option of the exclusive rights to explore the Edum Banso Gold Project within the historic and prolific gold producing Ashanti Gold Belt in Ghana.
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Forward-Looking Statements/Disclaimer: Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may be identified by the use of words such as "anticipate", "believe", "expect", "may", "will", "would", "should", "plan", "projected", "intend", and similar expressions. The Company bases these forward-looking statements on current expectations and projections about future events, based on information currently available. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. The Company disclaims any obligation to update any of its forward-looking statements, except as may be required by law. The Company has no mineral resource or reserve estimate for the Edum Banso Gold Project at this time, has no assurance that it will discover significant mineral resources, and may not have sufficient funding to thoroughly explore, drill or develop its property.
SOURCE Discovery Gold Corporation