DHNA NEWS! This is the real deal...should gap monday
Dhanoa Minerals Projects Acquisition Strategy to Result in 300,000 Ounces of Annual Gold Production by Third Year
Board of Directors to Vote Upon 3% Dividend to All Shareholders of Record as of June 30th, 2007
Jun 1, 2007 4:11:00 PM
TORONTO, ONTARIO -- (MARKET WIRE) -- 06/01/07 -- Dhanoa Minerals Ltd (OTCBB: DHNA)(FRANKFURT: D7Z) today announced its plan to acquire more properties using revenues generated from its three mines in the Bella Rica region of southern Ecuador.
This aggressive growth strategy has increased Dhanoa Minerals' gross revenue goals to 300,000 ounces of gold production by the third year.
In the first year, production is projected to 100,000 ounces of gold, which, assuming gold is $670 per ounce, translates into initial revenues of $67 million. With the cost of production at $280 per ounce, this translates into impressive gross profits of $390 per ounce, or $39 million annually.
Dhanoa Minerals management previously expressed their goal to generate gross revenues of no less than $170 million each year after year two of production, based on a recently completed resource extraction estimate for its three mines in the Bella Rica region of southern Ecuador.
By the third year, Dhanoa Minerals plans for its current and future properties will produce 300,000 ounces of gold per year, resulting in revenues and gross revenues of $201 million and remains confident that the price of gold is predicted to increase, therefore Dhanoa's revenues could be correspondingly higher.
"We have targeted and embarked on an aggressive acquisition plan to acquire promising properties throughout South America," stated Mr. Lee Balak, president of Dhanoa Minerals, Ltd. The company plans to finance this strategy by using revenues generated from its Bonanza, Guanache, and Mollopongo mines. Revenues from these properties should be more than sufficient for our expansion goals to be met."
In addition, today Mr Balak stated that the issuance of a 3% dividend for all shareholders of record at the end of the current quarter, ending June 30th, 2007, will be considered at the upcoming Board of Directors Meeting scheduled for June 15th.
AI
