VANCOUVER, British Columbia, Oct. 2, 2006 (PRIMEZONE) -- Harp Sangha, CEO / President of Douglas Lake Minerals Inc. (OTCBB:DLKM), announced the company has finalized negotiations and closed on the acquisition of 28 gold Prospecting Licenses (PL's), bringing the total number of 100% owned properties in its portfolio to 33.
Many of the new concessions support ongoing mining activities by local miners similar to the Morogoro property, making many of the new properties "advanced stage" with respect to exploration, and in many cases, drill ready.
Home to 52 Million Ounce World-Class Gold Deposits
A number of the 28 properties are located in the Victoria Lake Archean Greenstone belt, which currently hosts 52 million ounces of proven and probable gold reserves from active mining operations including Anglo Gold Ashanti's Geita and Barrick's Bulyanhulu mines. The other properties are located in a new discovery area in North East Tanzania where Douglas Lake has its existing properties, Ashanti SW, Kilometer 7, and Morogoro.
From CEO Harp Sangha's perspective, "As we continue to build our portfolio of highly selective Prospecting Licenses in Tanzania, it has become clear to us that our strategic alliance with Canaco Resources has been a very good business decision. Canaco not only provides technical expertise with the vetting of new properties, they are well financed and ready to execute an aggressive exploration program which adds significant value to Douglas Lake's portfolio."
"The addition of these 28 concessions is an important part of executing Douglas Lake's business plan of becoming the largest owner of mining concessions in mineral-rich Tanzania," said Harp Sangha. "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."
Due Diligence on 60 More Properties
Douglas Lake is also continuing to do its legal and geological due diligence on an additional 60 gold prospect mineral exploration properties in Tanzania -- a country which is considered by mining industry experts to host one of the world's fastest growing mining exploration sectors.
Royalty-based Mining Successes
"Royalty-based mining companies were popularized by such mining successes as Euro and Franco Nevada, and more recently by Tanzanian Royalty Exploration Corporation, which trades at a market cap of approximately US$500 million compared to Douglas Lake's US$17 million. Royalty-based public companies traditionally trade at a premium compared to other publicly-traded mining and exploration companies. This is primarily because shareholder dilution is minimized as exploration risks and costs are largely borne by joint-venture partners," says Sangha.
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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.