Dutch Gold Resources Inc. (fka DGRI)

[nodummy]

I don't know I didn't see the video, but depending on what information from the filings you read their is conflicting information about the production and potential of the Benton mining property.



From the 2007 filings by Aultra Gold Inc (AGDI) who owned the property prior to Dutch Gold Resources, Inc.

http://img01.otcmarkets.com/edgar/GetFilingHtml?FilingID=4995014

Since its inception on January 20, 2006, AGI has incurred the following expenses. Operating costs were $648,611. Mining development and explorations costs were $53,181 with related administrative costs of $15,928. Extraordinary costs of $393,373 were incurred with respect to AGI’s investment in the Benton Mine Property, in Josephine County, Southwestern Oregon, which was written off in connection with a decision by management to discontinue funding mining operations under an agreement that has been terminated by AGI with Dutch Mining LLC. AGI had obtained mining rights to the Benton Mine gold project through a direct buy out of the controlling rights from Dutch Mining, LLC (DMO), a limited liability company formed in 1994 in Merlin, Oregon, USA. In 1994, DMO acquired by assignment a Mining Lease and Option to Purchase covering the Benton Mine Group, which consists of 24 mining claims in good standing.

The Benton Mine was historically one of the largest gold mines in the area, and is currently the only operating underground gold mine in Oregon. Eight veins had been identified on the property with the Benton Vein, pending further exploration, being the largest and most persistent currently known. Some of the other veins are expected to become important with exploration. To date, most of the mine production has come from the Benton Vein, which received most of the historic exploration. The ore was simple, with the gold content within the pyrite found in the quartz. The Benton Vein has been developed since the early 1900s along 1,550 feet of its strike and for about 500 feet down dip. The width of the Benton varies from thin veinlets to as wide as 25 feet. The average width was about 4 feet. The mine was shut down in 1942 under WWII regulations. Management determined in fall 2006 that further economic exploitation of the Benton Property was economically unattractive.


They very obviously say in 2006 that the mine has not been producing since 1942. They also considered the mine to be unattractive to own.


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From the Dutch Gold Resources Inc (DGRI) filings:

Benton Mine

From the 10Q filing ending June 30, 2010 - The Company has had a lease, which is under dispute for the Benton Mine. The mine is currently in Care and Maintenance mode. There are disagreements with the owners of Benton Mine and Dutch Mining LLC as to the amount of royalties due to the lessor. Dutch Mining LLC does not and will not operate under the aforementioned lease until a reclamation plan is completed and a full commercial permit is obtained. The Company produced and sold gold ore in 2007 and 2008, selling gold concentrates to a domestic buyer and to an international buyer. The Company has not produced or sold any gold from the Benton Mine since 2008.

Also from the 10Q for the period ending June 30, 2010 - As of the date of this report, the Company is default under the terms of the Agreement. The Company has completed the reclamation plan for the Benton Mine and is evaluating the economic feasibility of the project, weighing projected capital costs and anticipated return on investment against other projects in the company portfolio. If it is determined that the Benton Mine is viable for future investment the existing lease will have to be re-negotiated and brought up to date.



Dutch Gold makes it sound like the mine was producing for a few months in 2007 then stopped production in 2008. From what I've read there are limits to the production of mines based on what type of permit a company has. I'll have to look into it further, but it doesn't sound like Dutch Gold had the type of permits to allow them to do very much with the Benton mine even when it was "active" for those few months.

At this point though all indications are that the Benton mining property is gone due to the disputes mentioned in the 10Q report referenced above so any issues about the potential production or past production of this mining property are currently irrelevant.