Dana Resources Extends Collota Gold Deposit to Exceed 8,000 Acresadmin
Thursday, August 13th 2009
Dana Resources announce that it has successfully acquired the Collota One Gold Prospect in Peru. Dana Resources currently owns and operates seven mining projects located in Peru’s most prolific mining regions.
The Collota One Gold Prospect is located in Northern Peru in the region of Ancash on the eastern side of the Cordillera Negra, (Black Range Mountains). It is 45km south of the city of Huarez. Elevation ranges from 4,400m to 4,600m. The project is accessed via paved and gravel roads.
Dana Resources previously announced the acquisition of the Collota Gold Project with an estimated reserve of 1,170,000 ounces of gold, equivalent to a current gross value in excess of $1 Billion. Dana Resources’ Collota One Gold Prospect increases the Company’s land holdings by adding an additional 3320 acres. The combined land holdings of Dana Resources’ Collota Gold Deposit and Collota One Gold Prospect now surpass 8,000 acres.
The target area is characterized by intense vuggy silica, quartz-alunite and argillic alteration. The alteration is hosted in the Calipuy group, a suite of volcanic rock characterized by basal andesitic lavas overlying rhyodacitic pumic and lithic tuffs. This particular geology is associated with epithermal gold deposits similar to Pierina and Yanacocha mines. This host rock is identical to Barrick’s Famous Pierina deposit which lies adjacent to the Collota Gold Deposit and is currently running low on reserves.
Dana Resources plans to mine the Collota Gold Deposit and adjacent holdings as an open-pit mine to a maximum of 50m in depth. The addition of the Collota One Prospect enables Dana Resources the opportunity to substantially increase the size of the existing deposit to be processed in the mine.
Dana Resources continues to estimate operation costs of approximately $400 per ounce. Further, this geological belt typically hosts economically significant silver values. Dana Resources is currently satisfied with its ownership of over 8000 acres surrounding the Collota Gold Deposit. This acquisition increases the volume of ore available to be processed. The Board of Directors commented; “This acquisition almost doubles our land holdings surrounding our 1.1 million ounce gold deposit. This strategic land acquisition further enhances our existing gold deposit. Shareholders can be proud that Dana Resources’ presence in Peru is growing in the right areas. Plans for production at the Collota Gold Deposit will be announced soon.”
With some of the richest mineral reserves in the world, Peru is one of the highest producing countries of precious & base metals in Latin America. Previously inaccessible regions are now becoming available through modern technology and equipment, making the high diversity of marketable minerals an extremely attractive prospect. In total, Peru holds about 16 percent of the world’s known mineral reserves.