US-based precious metals exploration and development company Dana Resources excitedly announced that it has acquired the Collota Gold Deposit in Peru. The Collota Gold Project is located in Northern Peru on the eastern side of the Cordillera Negra, (Black Range Mountains). It is 45km south of the city of Huarez. Elevation ranges from 4,100m to 4,600m. The Collota Gold Deposit is defined by 83 drill holes completed by Buenaventura Mining for a total of 5,500 meters of reverse circulation and diamond core drilling, identifying an initial gold deposit in 281.7 acres. Drilling has indicated attributable resources of 112 million tonnes, defined in two blocks: the Oxide Zone and the Sulphide Zone.

The target area is characterized by intense vuggy silica, quartz-alunite and argillic alteration. The Collota Gold Project is a high-sulphidation type epithermal gold deposit, positioned similarly to Barrick’s world famous Pierina mine. This particular geology is associated with epithermal gold deposits similar to Pierina and Yanacocha mines Dana Resources’ project consists of six claims for a total of 4,695 acres.

The current estimated resource totals 1,170,000 ounces of gold, equivalent to a current gross in-situ value in excess of $1 Billion. Dana Resources plans to mine the Collota Gold Project as an open-pit mine to a maximum depth of 50m. The estimated operation costs are approximately $400 per ounce. Additionally, this geological belt typically hosts economically significant silver resources.

Dana Resources is pleased complete the acquisition of such a substantial gold project. In a company issued statement, the Board of Directors commented, “This is a significant milestone for the Company. Our plan is to simultaneously increase the deposit at Collota and continue permitting the project for production. With only 10% of the Collota Project explored, Dana is confident that there exists a multimillion ounce gold deposit. Dana Resources is confident that this acquisition will yield a significant positive cash flow for Dana Resources and its shareholders upon commencement of commercial production.”

With some of the richest mineral reserves in the world, Peru is one of the highest producing countries of precious & base metals in Latin America. Previously inaccessible regions are now becoming available through modern technology and equipment. In total, Peru holds about 16 percent of the world’s known mineral reserves. Dana Resources currently owns and operates seven mining projects located in Peru’s most prolific mining regions.