Dhanoa Minerals Ltd. Announces it has Completed Due Diligence on its Second Mine Package in Southern Ecuador and Has Acquired an 80% Interest in the Projects
2007-01-23 17:00 ET - News Release
TORONTO, ONTARIO -- (MARKET WIRE) -- 01/23/07
Dhanoa Minerals Ltd. (OTCBB: DHNA)(FRANKFURT: D7Z) is pleased to announce it has completed the due diligence phase on the three mining projects in southern Ecuador from Grupo Minero Bonanza ("GMB") and has officially acquired an 80% interest in the mines.
As part of the due diligence phase 'Dhanoa' had sent an independent geologist that conducted extensive geological studies, and the Company is very pleased with the results.
Current production within all these three mines is approximately 700 oz/month, translating revenues of over $400,000/month using $600 au/oz price. 'Dhanoa' plans to increase production to approximately 2000oz/month within 5 months by modernizing the plant, purchasing equipment and hiring a larger labor force that will compliment production levels. Internal geologists for 'Dhanoa' are very confident that the project will be a great milestone for the company and are very enthusiastic to put the business plan in action and move forward with the proposed strategy.
This mine package hosts over 850,000 ounces of gold and consists of the Bonanza Mine, Guanache Mine and Mollopongo Mine located in the Bella Rica area in the south western end of Ecuador. All three mines are situated in the western end of the Ecuadorian metallurgical gold belt which from past production and actual reserves hosts over 10 Million ounces of gold.
Southern Ecuador has become a prolific area for mineral exploration/developmental companies. Many of the areas in southern Ecuador are either under explored or completely unexplored. With recent discoveries such as Aurelian Resources (Southern Ecuador) which has a potential 2.8 million ounce reserve and a market cap of approx $600 million there is a mass potential for gold discovery in this region that can be world class.
Paul Roberts, president of Dhanoa states; "Dhanoa is very excited with these three new projects which can increase our overall gold production in the area. There is also a tremendous amount of blue sky exploration potential in the vicinity of these three projects."
Dhanoa has not completed the work necessary to verify the historical classification of the mineral resource estimate and is not treating it as a current resource estimate as defined by Canadian NI 43-101 and therefore the estimate cannot presently be relied upon.
