Dutch Gold Resources Inc. (fka DGRI)

[Joeiniowa]

With todays news I have revised my estimates going forward. I have made the assumption the secondary 120 TPD mill will be brought back on to handle the Gold Bug mine. Using the 330 TPD estimates on the Benton mine and assuming the mine operates only 10 months per year I come up with a range of earnings based on .25 - .50 gradings of $7.35M - $14.7M. The Gold Bug mine comes out with another $2.7 - $5.4M in earnings potential. Total once both are operating roughly $10-$20M in earnings/year. Here are my estimates. Let me know if anyone finds an error.

Dutch Gold Resources

Website
http://www.dutchgoldresources.com/Home_Page.html

Announcement of Acquisition
http://biz.yahoo.com/iw/070116/0203611.html

Announcement of Benton in Production
http://biz.yahoo.com/iw/070313/0225969.html

Announcement of Company becoming fully compliant with filings
http://biz.yahoo.com/iw/070327/0231156.html

Company Completes Mill Upgrade
http://biz.yahoo.com/iw/070402/0233924.html

Background: Company used a previous Shell to reverse merge to take over the Benton and Gold Bug mine in Oregon. The company has spent over $9M to build a processing mill and prepare the Benton mine for production. After the Benton mine is in full production the Gold Bug mine will be started up. With the only permitted processing mill in Oregon there are numerous acquisition targets within several miles that can be procured to add to production and reserves in the future.

Information from Company. Financials being worked on and will be released within 2 months.

Fully Diluted Outstanding 38M
Float 8M
Management owns 30M
Reserves:
Benton Mine 235K oz – Only small amount of land has officially been surveyed. Additional reserves expected.
Gold Bug mine. Reserves to be determined. Averaged 2 oz/ton when mined in the 40’s.


Debt Zero
Status of Mine: Fully permitted and in production. Capacity is 330 tons/day.
Mine Life – 10-15 years

Assumption mining costs aprox. $300/oz, mine in production 300 days/year
Revenue Estimates based on Grading estimates @ 330 tons/day
Grading @.25oz/ton = 82 oz/day x 300 days/year = $14,700,000/year @$600/oz
Earnings estimate approx. $300/oz = $7,350,000/year

Grading @.50oz/ton = 164 oz/day x 300 days/year = $29,400,000/year @$600/oz
Earnings estimate approx. @ $300/oz = $14,700,000 year

Earnings Estimate for Gold Bug Mine
Assumes usage of 120 TPD Mill
At Capacity of 120 tons/day range 2.7M (.25 oz/ton) to 5.4M (.50 oz/ton) in earnings

Future Plans:
1) Update and release financials (Next 2 months)
2) Apply to OTCBB(2 months) and then to AMEX after $2 requirement met
3) Bring Benton up to full capacity (Over next several months)
4) Open up Gold Bug Mine – Late 2007
5) Update Website
6) Start Investor Relations Effort
7) Present at Minerals Conference – Late 2007