Dec 20 2010
Dutch Gold Resources, Inc. (Pink Sheets:DGRI) today announced that it is acquiring the drill cuttings and core from the majority of the 323 holes historically drilled on its Basin Gulch property in Granite County, Montana.
The historical drilling on the Basin Gulch property outlined a large open-ended block of gold mineralization that contains several million ounces of gold and silver. The current evaluation and planned new drilling are being focused on defining and expanding high-grade zones both within and outside of the historically discovered mineralization.
The Company anticipates reorganizing and safely storing the samples to allow for further review and testing. Historical sampling of 1,000 gram and larger selected core and cuttings samples showed that portions of the Basin Gulch mineralization contain coarse gold, which can only be evaluated by bulk sampling. The historic bulk sampling was conducted on samples from a variety of locations and mineralization grades. The testing showed that the coarse gold occurred in specific areas. On average, the bulk sampling increased the overall grade of the tested samples substantially over their original 30-gram assays.
The planned new bulk testing will be conducted with the goal of expanding the known areas containing coarse gold, increasing the ore grades in areas with coarse gold, and to determine how much of the coarse gold can be recovered through simple gravity methods. This work involving the drill samples will be conducted over the winter where results could guide further trench bulk testing in the second quarter 2011.
The Company believes it may be significant that much of the historic early twentieth century placer mining at Basin Gulch involved placering of the in-place volcanic diatreme rocks. This is interpreted to mean that the large diatreme complex, which has a surface area of approximately 3,300 feet by 2,700 feet, contains significant areas with coarse gold mineralization. This is interpreted to be encouraging for the future discovery of high-grade gold mineralization deeper in the diatreme.
Additionally, the Company announced it would present a year-end shareholder update on the Company's progress on December 20, 2010, wherein the Company will discuss plans for 2011 and review the performance during 2010. The update will discuss the Company's current capital structure, near term plans, and an outlook on the gold mining sector for 2011.
Source: Dutch Gold Resources, Inc.