ATLANTA, April 14, 2011 (GLOBE NEWSWIRE) -- Dutch Gold Resources, Inc. (OTCQB:DGRI) (the "Company") today announced that it is expanding the scope of the next phase of its second drilling program in 2011 by introducing a bigger drill rig to its ongoing drilling program at its Basin Gulch property in Granite County, Montana. The Company's current drilling is within the diatreme complex that is important to the property's gold and silver mineralization. The bigger drill rig will allow DGRI to increase the size of its core drilling to 3.5-inch diameter core to acquire bigger samples for bulk testing.
"The large diameter core will allow us to process four kilo samples. A normal assay sample size is 30 grams, or about an ounce", said Dan Hollis, CEO of Dutch Gold. "The four kilogram samples, about 8.8 pounds each, will allow us better assay control because the area in which we are drilling contains coarse gold. We know that coarse gold is present because testing of samples that was conducted in the 1990's within the area currently being drilled showed that much of the contained gold is present in the form of scattered coarse pieces. This is further supported by the observation that much of the historic placer mining was of the in-place near-surface diatreme material. The placer mining expanded in width and depth within the diatreme, recovering coarse gold from the weathered in-place bedrock. A normal 30-gram assay can easily miss the presence of coarse gold, or if a coarse gold piece is included in the sample, can also give an artificially high reading. The four-kilogram samples will give us more accurate results in the presence of coarse gold. We plan to follow up the larger diameter drilling with limited bulk samples, on the scale of a ton each, later this year", added Mr. Hollis.
DGRI also plans to test if recovery of a significant portion of the gold and silver can be achieved by gravity and floatation methods. The introduction of the larger drill rig will cause a two-week delay in the program, but DGRI feels the improved accuracy of the assay information makes the delay very worthwhile. The delay will also allow more melting of this year's exceptionally deep and late snowpack, which has complicated the fieldwork.
The Company is currently analyzing drill results of Phase 1 of the current program. Initial assay results are expected by month end. Based on initial field reports and preliminary analysis, the Company has decided to expand the scope of the next phase of drilling.
About Dutch Gold Resources
Dutch Gold Resources, Inc. is engaged in the acquisition and development of gold properties in North America. The company's strategy is to focus on overlooked resources that have the potential to have a value creation event within 24 months of acquisition. The Company criteria call for a property to reach either near term production, or be a candidate for development through joint venture financing during the two years subsequent to acquisition. The Basin Gulch project Montana, the Jungo property outside Winnemucca, Nevada, and the Gold Bug Mine in Oregon comprise the Company's current portfolio. The DGRI management team is composed of seasoned professionals with decades of experience in geology, and in mergers and acquisitions, as well as corporate finance. For further information, please see www.DutchGold.com.
Forward-Looking Statements
This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. Actual events could differ materially and substantially from those projected herein and depend on a number of factors. Certain statements in this release, and other written or oral statements made by Dutch Gold Resources, Inc. are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond the Company's control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Important factors that could cause actual results to differ materially from the company's expectations include, but are not limited to, those factors that are disclosed under the heading "Risk Factors" and elsewhere in documents filed by the company from time to time with the United States Securities and Exchange Commission and other regulatory authorities.
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