Replies to post #39549 on 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.

[0331]

no b.s. will try a list as to why that might be (IMO)

1) old CFO was not savvy in acquiring capital/investors, was there to clean up the books and focus on that

2) The old audit company was small time, they also recently upgraded to a well respected audit firm that carries wieght

3) primary concern of the company has probably shifted from forming a solid portfolio and trying to regain investor confidence to getting ready to mine and make money

4) Peruto and Hollis are experts and some things but not with gaining big time investors.

the list could go on but remember all just my opinion!

[DRCAL]

There are some, but they stay under the radar with less than 5% of the stock in DGRI. Also, there are several investors with 1-5 million shares each. Past history with the Benton Mine discourages most larger investors. Once DGRI gets into production again, things will change with increased investor confidence. However, the PPS will most likely be much higher by then. The current risk/reward ratio is great because this stock is under 2 cents per share. Relative to all other higher priced mining stocks, DGRI is IMO a bargain. DGRI is in business to mine with mining equipment, a mill, and a mine manager. It is not just an ordinary exploration company. This is a big difference. However, it is small and has limited access to capital except by selling its shares.
It's new property apparently can provide some needed cash flow for other operations. This is excellent news for the investors.