Dutch Gold Resources Inc. (fka DGRI)

[naturallyk2]

So... at BASIN Gulch DGRI says there is most likely several million ounces of gold and silver in the ground. Silver usually accompanies gold in an equal amount, but sometimes its more like a Gold 3:7 Silver ratio. To be conservative and safe we'll say 3 divided by 7 = .42 (or 42%) and then multiply .42 by 3,000,000 and we come out to 1.26 million ounces of gold with 1.76 million ounces of silver.

Keep following me on this one.

1.26 million ounces x $1370 (current price of gold) = $1.762 billion

In the U.S. the cost to mine gold is about $750 an ounce.

Cost 750/ Value 1370 = .54 (54%)

.54 x 1.762 billion = $951,480,000 potential profit on gold in the Basin Gulch. That's conservative.

1.76 millions ounces of silver X $29.13 (current price of silver) = $51.268 million

Since silver will most likely be extracted from the same ore as gold we'll keep the cost at the same percentage of gold which is 54% .

$51,268,000 x .54 = $27,684,720 Potential profit from the silver


What does this come out to? The Basic Gulch mine is literally worth close to 1 BILLION DOLLARS right now. If DGRI were to sell this mine they could easily throw it away for $400 million.

This stock is grossly undervalued.