Dutch Gold Resources Inc. (fka DGRI)

[nodummy]

Nothing to clarify.

This is how penny stock mining companies operate. They go and find properties that the real mining companies have no interest in that they can obtain rights to for very little money (or in many cases the issuance of shares).

They sometimes string investors along for months and months while they work on completing these acquisitions which aren't actually acquisitions they are just arrangements to have rights to mine the properties - in some cases never even completing the agreement then losing the properties after using them to promote the stock for months and months.

If they do follow through and make the proper payments (usually in shares) for the rights to mine the property that no real company was interested in then they string the investors along for months only performing the most minimal least expensive testing on the property throwing out some BS results on the properties, but never explaining to investors that in reality it would cost far more to mine the property than what they could make from the minerals in the ground.

In some cases the company eventually defaults on too many required leasing payments and loses the property which eventually will get passed on to the next interested penny stock company. In other cases they just keep stringing the investors along with testing phases and no production until the investors lose interest, or the stock has been diluted down to nothing, or they run out of testing phases they can do and just stop using the property all together.

In the case of DGRI they probably chose their current properties (Basin Gulch and Jungro) because one of their insiders owns the rights to those properties and so that insider has been able to profit heavily by passing these properties on from related company to related company to related company to related company.