LOI To Acquire Arizona Project
ATLANTA, GA - Dutch Gold Resources, Inc. has entered into a Letter of Intent to acquire certain gold properties of Double E Enterprises in Arizona. Completion of the acquisition is subject to the execution of definitive agreements, due diligence review and approval of the Board of Directors of Dutch Gold.
The project is located northwest of Phoenix, AZ and consists of 6 BLM mining claims. The property is permitted for exploration and limited production. Recently there has been modest production from the project. Early mine workings date back to the work done by the Spaniards in the 1700's. The Company hopes the venture may start generating cash flow during Q3 2011. The Company has a three-fold plan for the mine. First, DGRI intends to continue the limited production with a goal of increasing production continuously over the next two years. To this end, the Company expects to fund modest capital expenditures over the next months. These capital expenditures will be made to enhance recovery of existing mining efforts, as well as to expand the amount of ore mined. Further the Company intends to conduct further exploration of the property, particularly along existing vein structures. Accordingly, the Company expects to conduct a bulk-sampling program, followed by drilling program during Q3 and Q4 2011. Finally, the Company intends to acquire additional property in the vicinity of the Double E Enterprises mine. "Based on current information, the Company believes that this acquisition can be accretive to earnings in 2011. We have looked diligently for prospects that have the capacity to go into production within twelve months of acquisition, and we anticipate that this property will do so within three months of acquisition," said Daniel Hollis, CEO. "Our team is executing on our strategic plan, bringing in the first acquisition of 2011 that fits our model," added Hollis. "We look forward to achieving our goal of early production from this project. Combined with our strategic drilling program at our Basin Gulch property, we believe that this can be an excellent addition to the Company's portfolio of projects." The company's address is 3500 Lenox Road, Suite 1500,Atlanta, GA 30326, 404-419-2440, email: [email protected].