SOURCE: Dutch Gold Resources, Inc.

Dutch Gold Resources, Inc.

January 29, 2010 17:01 ET

Dutch Gold Updates NI 43-101 Gold Resource at Basin Gulch Property, MT

ATLANTA, GA--(Marketwire - January 29, 2010) - Dutch Gold Resources, Inc. (PINKSHEETS: DGRI) Dutch Gold Corp. ("Dutch") (http://dutchgold.com) is pleased to announce an updated mineral resource estimate for a portion of the Basin Gulch Project, Montana. The project is in Granite County, Montana, about 19 road miles west of Philipsburg, Montana. The new mineral resource estimate, conducted by David Brown and Associates, has been disclosed in accordance with the definition standards and guidelines on mineral resources and mineral reserves of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in Canadian Securities Administrators National Instrument 43-101 (NI 43-101). The estimate is for a mineralized area that was historically pattern drilled by 88 core and reverse circulation holes and sampled by a series of surface trenches to bedrock. This area is informally referred to as the "discovery block." An additional more widely scattered 235 holes have been drilled on the property. While these additional holes also intersected gold mineralization, they were not drilled in sufficiently close spacing to project a gold resource.

The estimated gold mineralization volume for the discovery block is 633 million tons grading 0.012 ounce per ton (opt) gold, using a 0.0065opt cutoff, for a contained volume of approximately 7,600,000 ounces of gold. Within this mineralization is higher-grade volume of 108 million tons grading 0.026 opt gold, containing approximately 2,800,000 ounces of gold. The gold mineralization also contains locally significant associated silver mineralization that was not included in the estimates.

Additionally, based on numerous higher-grade gold intercepts that have not yet been evaluated, Dutch expects to define very significant areas of higher-grade mineralization with future drilling, both within the discovery zone and outside it. As step-out and fill-in drilling is conducted in the gold-mineralized areas intersected by the holes outside the discovery block, Dutch anticipates the discovery will grow.

"This resource update significantly increased the size and quality of the Basin Gulch deposit. The gold resource remains open for Basin Gulch project in all directions. We are enthusiastic about the potential for future discovery, both in the discovery and in the eighty per cent of our project that is as yet undeveloped," said Daniel Hollis, CEO of Dutch Gold Resources, Inc. "This is a very large gold system. We feel that we are at an early stage of discovery in this system, and plan a three-fold program. We will expand the defined gold system; expand high-grade drill intercepts that locally exceed an ounce per ton; and we will explore identified untested potentially major high-grade targets. While the future value of this project could exceed three billion dollars at today's gold prices, according to our preliminary models, after subtracting capital expenditures, permitting, extraction and milling costs, our models indicate that this would be an economically attractive program even though gold prices dropped to their current support levels."

"This expansion on my Basin Gulch discovery is very gratifying. I look forward to step-out drilling of isolated high-grade intercepts from my earlier drilling, bulk testing of already identified shallow coarse gold areas, and particularly of drill-testing the deep boiling zone within the diatreme complex and the walls of the diatreme. I believe the diatreme complex has the potential to contain large high-grade gold zones that could become the future focus of this entire large gold system. We are initiating sequenced work on all of these programs beginning in February," said Rauno Perttu, Dutch's new Chief Operating Officer.

A Technical Report by Dutch supporting disclosure of this mineral resource will be filed with the Securities and Exchange Commission along with this press release. The Technical Report updates the project as of January 15, 2010, and outlines work on the resource and progress to date.

This press release uses the terms "Measured resources," "Indicated resources" and "Inferred resources," which are calculated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining and Metallurgy Classification system. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. We advise investors that while those terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. In addition, "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. U.S. investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally minable.

About Dutch Gold Resources:

Dutch Gold Resources, Inc. is engaged in the production and development of gold reserves in North America. The company's strategy is to focus on overlooked resources that can be quickly and cost-efficiently brought into production, and to seek out potentially significant exploration targets in high value geographies. The Company is currently negotiating three transactions, which, if and when completed, could significantly increase the company's holdings. DGRI management has strong experience in mergers and acquisitions, as well as corporate finance.

For further information, please see www.DutchGold.com or please contact Jason Assad at Dutch Gold Resources, Inc. at (404) 419-2440.

Dutch Gold Resources, Inc. accepts sole responsibility for the adequacy or accuracy of this release. This press release contains forward-looking statements about the Dutch Gold Resources, Inc. and its business. Forward-looking statements are statements that are not historical facts and include resource estimates. The forward-looking statements in this press release are subject to various risks, uncertainties and other factors that could cause the Dutch Gold Resources, Inc. actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. These risks, uncertainties and other factors include, without limitation risks related to fluctuations in gold prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Dutch Gold Resources, Inc., properties; uncertainties involved in the interpretation of drilling results and other tests and the estimation of gold resources; the possibility that required permits may not be obtained on a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; risk of accidents, equipment breakdowns and labor disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; and other factors identified in the Dutch Gold Resources, Inc. SEC filings and its filings with Canadian securities regulatory authorities. Forward-looking statements are based on the beliefs, opinions and expectations of the Dutch Gold Resources, Inc. management at the time they are made, and other than as required by applicable securities laws, the Dutch Gold Resources, Inc. does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances, should change.

Contact Information

  • For further information, please see www.DutchGold.com or please contact:
    Jason Assad
    Dutch Gold Resources, Inc.
    (404) 419-2440