Dutch Gold Resources has declared that a Letter of Intent has been inked with Trelis for a joint venture project located in Montana. A bulk sampling campaign is being planned before executing the final agreements.
Trelis has 10-year leases on a number of parcels that were previously called as the Cowan Bar Holdings. These parcels lie along Grasshopper Creek located in Beaverhead County starting at a point about 4 mi. downstream of Montana, and persisting downstream towards the Z Canyon’s eastern end. It has been called as the Grasshopper Placer Mining Group, because of its location and the mining method, which will be utilized in extracting gold and other precious metals from the site. Most part of this land that lies within the Bannack Mining District has not been excavated.
The company is expecting to mobilize equipment in the third quarter of 2012, based on the bulk sample results, and may conduct limited production during the fourth quarter of 2012.
According to Dan Hollis, Dutch Gold Resources’ Chief Executive Officer, this project coincides with the company’s investment criteria, instant cash flow opportunities, comparatively low capital costs and a possible exploration upside, which may offer a transitional stream of income to the company.
The company’s capital commitment has been advanced for the project and Dutch anticipates finishing final contracts signed with Trelis by 25 August, 2012.
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