Dana Resources Reports Copper Price Expectations Raised
September 21 2009 - 8:58AM
Marketwired
(OTCBB: DANR) (FRANKFURT: OD0) Dana Resources is a US-based
precious metals development company with advanced stage gold and
base metal properties in Peru. Management is pleased to announce
that leading financial institutions have revised their copper price
forecasts up.
Both Goldman Sachs Group Inc. and Citigroup Inc. published
reports last week forecasting that copper would rise 22 per cent
and 21 per cent, respectively. Back in January, both firms had
incorrectly seen prices for the metal falling substantially. But
they were in good company. A survey of 23 analysts by Bloomberg at
the start of the year found that the median estimate was for a 49
per cent drop in prices. China surprised markets by doubling its
demand for copper this year and now the metal, which is used
extensively in manufacturing, is seen benefiting from the recovery
of the western economies, causing forecastsers to call for over a
20 per cent increase from current prices of $2.74 per pound to over
$3.25 per pound.
Dana owns 100% of its Turmalina copper resource. The Turmalina
copper resource has existing high grade reserves of 305,586 tons of
2.5% copper (15 million pounds of copper). Dana believes the
Turmalina resource initially has a copper potential of over 660
million pounds, which had a value of approximately $1.9 billion.
New analyst forecasts raise the expectations of this resource to
exceed $2.25 billion.
Dana's Turmalina initial in-situ reserves are valued at 82 cents
per share. New analyst forecasts increase the current resource
in-situ valuation to over 98 cents per share. Further, management
believes the Turmalina resource will be increased by at least forty
fold en route to production.
As previously reported, current valuations of Dana Resources'
100% owned Collota gold deposit place an in-situ valuation of 81
cents per share on the initial gold deposit. Management states,
"Our initial gold deposits and copper reserves have a combined
in-situ value of $1.63 per share. Leading industry analysts are
raising their price expectations on both copper and gold weekly. It
is evident that Dana Resources' share price is heavily discounted
for a company with 100% ownership of its assets. We continue to
develop our deposits and reserves towards production regardless of
share price. We believe that both shareholders and the Company will
be rewarded with our commitment to production and appreciate the
strong support."
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.
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 Dana Resources control
with respect to the 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 Dana
Resources' filings with the Securities and Exchange Commission.
Contact: Leonard DeMelt Dana Resources www.danaresources.com
Email Contact
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