ATLANTA, June 28, 2012 /PRNewswire/ -- Dutch Gold Resources, Inc. (OTCQB: DGRI) (the "Company") is pleased to announce that it has reached a definitive joint venture agreement with its partner in Nicaragua. The Company also announced that it has completed the ore extraction and collection of its previously announced bulk sampling program.
"We are pleased to have reached a definitive agreement that allows us to aggressively move forward with our partners in Nicaragua," said Dan Hollis, CEO. The agreement calls for DGRI to bring the professional, technical and managerial resources to the project, as well as project financing and provides for the parties to share net operating income equally in this first project together. An 8k will be filed later this week containing the agreement itself.
The Company has completed the ore-gathering phase of its bulk-sampling program, and expects to begin analytical interpretation over the next three weeks, allowing the Company to ship production equipment soon thereafter. "We are operating within the timelines we initially set forth, to begin to increase production during the third quarter of this year," said Mr. Hollis.
Upon commencement of production in Nicaragua, the Company believes that it can expand its area of operations, adding new projects whiles optimizing output from this first joint venture. Photographs from the current operation, and a copy of the Joint Venture Agreement may be found at http://ir.stockpr.com/dutchgold/presentations.
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.
Tom Leahey, CFO
Dutch Gold Resources, Inc.
SOURCE Dutch Gold Resources, Inc.