Dana Resources (DANR)
Quote : 0.085 0.005 (6.25%) @ 4:00PM
Dana Resources Reports Copper Price Expectations Raised
LAS VEGAS, NV -- (Marketwire) -- 09/21/09 -- (OTCBB: DANR) (FRANKFURT: OD0) Dana Resources is a US-based precious metals development company with advanced stage gold and base metal properties in Peru. Management is pleased to announce that leading financial institutions have revised their copper price forecasts up.
Both Goldman Sachs Group Inc. and Citigroup Inc. published reports last week forecasting that copper would rise 22 per cent and 21 per cent, respectively. Back in January, both firms had incorrectly seen prices for the metal falling substantially. But they were in good company. A survey of 23 analysts by Bloomberg at the start of the year found that the median estimate was for a 49 per cent drop in prices. China surprised markets by doubling its demand for copper this year and now the metal, which is used extensively in manufacturing, is seen benefiting from the recovery of the western economies, causing forecastsers to call for over a 20 per cent increase from current prices of $2.74 per pound to over $3.25 per pound.
Dana owns 100% of its Turmalina copper resource. The Turmalina copper resource has existing high grade reserves of 305,586 tons of 2.5% copper (15 million pounds of copper). Dana believes the Turmalina resource initially has a copper potential of over 660 million pounds, which had a value of approximately $1.9 billion. New analyst forecasts raise the expectations of this resource to exceed $2.25 billion.
Dana's Turmalina initial in-situ reserves are valued at 82 cents per share.
New analyst forecasts increase the current resource in-situ valuation to over 98 cents per share. Further, management believes the Turmalina resource will be increased by at least forty fold en route to production.
As previously reported, current valuations of Dana Resources' 100% owned Collota gold deposit place an in-situ valuation of 81 cents per share on the initial gold deposit. Management states, "Our initial gold deposits and copper reserves have a combined in-situ value of $1.63 per share. Leading industry analysts are raising their price expectations on both copper and gold weekly. It is evident that Dana Resources' share price is heavily discounted for a company with 100% ownership of its assets. We continue to develop our deposits and reserves towards production regardless of share price. We believe that both shareholders and the Company will be rewarded with our commitment to production and appreciate the strong support."
About Dana Resources
Dana Resources is a precious and base metals exploration company with offices in the United States and Peru. Dana's management team possesses local knowledge, extensive international connections, a wealth of experience and technical expertise in mining, mining finance, exploration and production. Dana Resources has acquired a portfolio of gold, silver and other precious & base metal properties located in Peru's most prolific mining regions.
With Peru growing as a producer of gold, silver and other metals on the international market, Dana Resources is well positioned to capitalize on the escalating global demand for commodities. The management team and Directors are committed to creating value for their shareholders and to the long-term success of Dana Resources.
The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond Dana Resources control with respect to the commencement of drilling operations, concentration in mineral deposits, delays in testing and evaluation of ore samples, and other risks detailed from time to time in Dana Resources' filings with the Securities and Exchange Commission.
Contact:
Leonard DeMelt
Dana Resources
www.danaresources.com
AI
