SOURCE: Dana Resources

March 15, 2010 07:30 ET

Dana Resources Provides Update on Chota Mine Acquisition

LAS VEGAS, NV--(Marketwire - March 15, 2010) -  Dana Resources (OTCBB: DANR) (FRANKFURT: OD0), a US based precious metals exploration and development company, wishes to update its shareholders regarding its ongoing due diligence of the Chota Silver Mine.

Dana Resources has entered into a letter of intent to acquire a 100% interest in the Chota Silver Mine located in Peru. Under the terms of the LOI, Dana will be granted 100% ownership of the mine for aggregate consideration of $425,000 US in cash plus a yet to be determined number of shares.

The Chota Mine is located within the Alto Chicama mining district of Peru, near several important mines and several interesting prospects. The world class mines in the district include Barrick Gold Corp's Lagunas Norte, 25 km east of the property with a reserve of 8.9 million ounces of gold. Another world class mine is Pan American Silver's Quiruvilca polymetallic deposit which is located approximately 12km southeast of the property. The Quiruvilca deposit contains 349,700 metric tonnes of proven reserves grading 185 g/t Ag, 5.87% Zn, 2.15% Pb and .66% Cu and 2.8 million tonnes of Measured Resources grading 138g/t Ag, 2.44% Zn, 0.85% Pb and 1.8% Cu. 

Dana's ongoing due diligence suggests that the exposed mineralization represents the upper part of an epithermal system which could continue much deeper. Recent assays results from our sampling program have produced consistent grades of 4 g/t gold and 1427 g/t silver at surface and 439 g/t silver underground.

Silver has markedly outperformed gold over the last year, turning in a stellar 53% year/year return through December compared to a 30% gain in gold. We do not anticipate this to change considerably in 2010. Gold is currently valued at 65 times that of silver. Next year we expect this ratio to revert back to levels seen through 2006-2008. In other words, a gold to silver ratio of about 50. Taking our expected range for gold into account, at $1050 to $1250 USD/ounce, this would mean silver returning to a zone closer to $21 to $25 USD per ounce. 

The industrial applications of silver relative to gold are another factor that will lead to an outperformance of silver over gold in the year ahead. The latest data available show that 54% of total silver fabrication goes to industrial applications. With the global economy conservatively expected to expand 3.1% in 2010 (IMF projections) and most of that growth coming from developing nations, silver is in a unique position to prosper.

Mr. Benjamin Nuñez, General Manager of Dana Resources in Peru said, "We are very excited with the results of our due diligence on the Chota Silver mine. Both the sampling and data from the draft 43-101 report have surpassed our expectations. It is an exciting time for Dana Resources. Hosting both a 1.17 million ounce gold deposit and now a producing silver mine positions Dana Resources towards becoming a self sustaining mining company."

About Dana Resources
Dana Resources is a precious and base metals exploration company with offices in the United States and Peru. Dana's management team possesses local knowledge, extensive international connections, a wealth of experience and technical expertise in mining, mining finance, exploration and production. Dana Resources has acquired a portfolio of gold, silver and other precious & base metal properties located in Peru's most prolific mining regions. With Peru growing as a producer of gold, silver and other metals on the international market, Dana Resources is well positioned to capitalize on the escalating global demand for commodities. The management team and directors are committed to creating value for their shareholders and to the long-term success of Dana Resources.

Forward-Looking Statements
The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to commencement of drilling operations, concentration in mineral deposits, delays in testing and evaluation of ore samples, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

On Behalf of the Board,

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