Dhanoa Minerals Projects Annual Revenues of $170 Million by Second Year of Production
Tuesday May 29, 8:00 am ET
TORONTO--(BUSINESS WIRE)--Dhanoa Minerals Ltd. (OTCBB:DHNA - News; FRANKFURT:D7Z - News) announced that it has completed a resource extraction estimate for its three mines in the Bella Rica region of southern Ecuador. First year production (ending in June, 2008) is expected to be approximately 100,000 ounces of gold, generating revenues upwards of $68 million, with gold at $680 per ounce. By the end of year two, production is projected to reach 250,000 ounces of gold per year.
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The three operating mines (Bonanza, Guanache and Mollopongo) sit on the western end of the Ecuadorian metallurgical gold belt, which holds over 10 million ounces of gold.
Even if gold remains at its current price, Dhanoa management is confident that the Company will generate gross revenues of no less than $170 million each year after year two of production. However, since the price of gold is predicted to increase, Dhanoa's revenues could be correspondingly higher.
"Dhanoa has reached a significant milestone in production, and we're very excited about the prospects for the next two years," says Mr. Lee Andrew Balak, president of Dhanoa Minerals Ltd. "With the current price of gold and our vast reserves, our revenues will be considerable."
About Dhanoa Minerals Ltd.
Dhanoa is a production stage company formed for the purpose of acquiring, exploring, and developing natural resource properties. Activities during the production and exploration stage include further development of the Company's business plan and raising capital. The Company has recently initiated a new program to evaluate undervalued assets for potential addition to its mineral claim portfolio.
Forward-Looking Statements
Statements contained in this news release that are not historical facts are forward-looking statements that involve risks and uncertainties. Actual results may differ materially from any forward-looking statements due to many risk factors which include, but are not limited to, no operating history and no earnings, reliance on the Company's management team, the ability to successfully implement the Company's business plan, the ability to fund the Company's business strategy, competition and general economic conditions. Reference is made to our filings made with the United States Securities and Exchange Commission. This news release is not intended for Canadian Investors.
Contact:
Dhanoa Minerals Ltd.
Corporate Headquarters
Lee Andrew Balak, 416-838-4348 or 416-742-6579
www.dhanoaminerals.com
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Source: Dhanoa Minerals Ltd.