Acquire silver mines in central Peru
The company, based in Las Vegas (Nevada), is dedicated to the exploration and development of precious metals and in central and northern Peru has properties that include exploration for base metals and gold advanced.
The president of Dana Resources, Len DeMelt said that currently evaluates three prospects mining and that due diligence (extensive and thorough audit) is already underway so that negotiations could conclude soon. He said that the company’s strategy is to acquire mines that are producing and investing in them to gradually increase its production capacity. He added that these assets initially require relatively small investments, avoiding unnecessary expenses and to generate a cash flow.
“Dana has implemented a plan to acquire precious metals assets to generate cash flows and take advantage of current high commodity prices,” he said.
The first prospect is evaluating Dana Resources is a mine of silver, lead and zinc in small scale, whose production could be increased with minimal investment, from 50 tonnes per day to more than 250 tonnes over a period of 12 months. Assuming a recovery rate of 80 percent and a processing fee of $ 250 per ton, the company would start seeing a profit under six million dollars per year in the initial 50 tons per day, he said DeMelt.
The second prospect is located in the Huancavelica region in an area where there is money for over 50 years. In this area Huachocolpa mine has about 25 million ounces of silver and Julicane mine produced 80 million ounces or so.
The third prospect is an exploration project with ongoing excavations indicate the existence of a moderate metal deposition. Preliminary calculations of Dana, the deposit would contain 30 million ounces of silver are not yet in production. Production could begin in the very short term and minimal capital expenditure.