VANCOUVER, British Columbia, July 25, 2006 (PRIMEZONE) -- Harp Sangha, CEO / President of Douglas Lake Minerals Inc. (OTCBB:DLKM), announced the company is in the final stages of negotiations with three private Tanzanian companies that own 28 mining concessions. All concessions are known to be in gold-bearing zones currently being worked by local artisan miners.
Fourteen of these concessions are located in the Lake Victoria Green Stone Belt area, which is home to such world-class deposits as Anglo's 30 million ounce Geita Mine and Barrick's 19 million ounce Bulyanhulu Mine. Ten concessions are strategically located in central Tanzania near Douglas Lake's Morogoro deposit. Legal due diligence is nearing completion and the company expects to close within the next 30 days.
"The addition of these 28 concessions is an important and consistent part of executing Douglas Lake's strategic plan of becoming the largest owner of mining concessions in mineral-rich Tanzania," CEO Harp Sangha proudly stated. "And our royalty-based business plan calls for acquiring 100% ownership in over 100 mining concessions. Initially we will receive revenue from our joint-venture partnership with other exploration companies. As our partners develop these mines, our revenues will also flow from ownership and carried interest in each mine."
Royalty-based mining companies were popularized by such mining successes as Euro and Franco Nevada, and more recently by Tanrange Corporation (AMEX:TRE), formerly Tanzanian Royalty), which trades at a market cap of approximately US$590 million compared to Douglas Lake's US$32 million at a trading price of $1.50. Royalty-based public companies traditionally trade at a premium as compared to other publicly-traded mining companies. This is primarily because shareholder dilution is minimized as exploration risks and costs are largely borne by joint-venture partners.
Tanzania is third largest gold producer in Africa
Gold was first discovered and mined in Geita, Kahama and Sekenke areas of the Lake Victoria Goldfields in 1898. Since privatization of the state-lead mining industry in 1993, the country has witnessed significant foreign investment in the mining sector and the emergence of large commercial mining operations. Gold exports have increased from US$3.33 million in 1998 to US$509.8 million in 2003. Tanzania is now the third largest gold producer in Africa after Ghana and South Africa, and one of the fastest growing gold producing nations in the world.
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Significant Tanzanian Gold Operations
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Reserves & Resources
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Project Owner Tonnes Grade Ounces Production
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Bulyanhulu Barrick 29,692,000 14.43 13,775,377 350,000
Tulawaka Barrick 973,000 13.27 415,074 80,000
Geita Anglo Ashanti 240,400,000 3.87 29,911,841 650,000
North Mara Barrick 38,000,000 3.50 4,276,115 250,000
Golden Pride Resolute Ltd 12,300,000 1.60 632,736 150,000
Buzwaghi Barrick 57,951,000 1.89 3,521,441 --
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52,532,584 1,480,000
About Douglas Lake Minerals, A Royalty-Based Company
Our vision at Douglas Lake Minerals is to focus on exploring and developing gold, copper, nickel, uranium and diamond mining opportunities in Tanzania, a country with vast amounts of undeveloped mineral-rich natural resources. We are exploring and developing our large portfolio of prospecting concessions through royalty-based joint venture partnerships. Our strategy is to provide investors with considerable upside potential while minimizing future shareholder dilution through our royalty partnerships (www.douglaslakeminerals.com).
NOTE: No Exchange has either approved or disapproved the information contained herein. This news release many contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and risk factors beyond its control; and actual results may differ materially from expected results. The Company will not update forward-looking statements as conditions change. Factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's quarterly and other periodic filings with the SEC.