November 8, 2006
Drake Gold Announces Jackpot Placer Project Update
Drake Gold Resources, Inc. (PINKSHEETS: DKGR) is pleased to announce an update on the progress of the Jackpot Placer Project as the company moves closer to the production stage on its primary project.
PREPARATIONS FOR OPERATIONSAs previously released, a Caterpillar D9 and a front-end loader are currently on site and are ready to be used during full operations. However, authorized under BLM guidelines is the allowance for "maintenance" to be conducted on site prior to receiving approval of permits approving full-scale operations. Drake has utilized this allowance to begin stockpiling "paydirt" or gold-bearing material in preparation for processing. To date an on-site worker under the direction of Dan Patch, the land owner of both the Jackpot and Copperstone mines, has been actively stockpiling paydirt. Currently, more then 3000 cubic yards of paydirt has been stockpiled and is ready for processing.
Last week the Drake management made a trip to the Jackpot Placer Project to review the properties development level, inspect existing equipment, look at formations, take additional samples and meet existing crew on site.
Our project manager Norm Pearson and part of his team joined the Drake management team on site and had this to say, "It is a pleasure to make this trip onto the 200 acre site in SW Arizona which has turned out to be very exciting. The project is set up to begin a full-scale placer operation in which I can bring my technology and expertise to the operation." Mr. Pearson's "rock box" technology has been used world-wide by over 180 different operations including majors such as gold company Placer Dome who seek higher placer results.
He continued to say, "Based on the geological report presented by Craig Parkinson estimating .10 ounce of gold per cubic yard we are planning to set up a minimum of a 100 cubic yards an hour plant. We want to maximize this project to full capacity so that the sale of gold may be used to expand other projects Drake Gold has available."
A series of paydirt samples, pictures and video interviews were taken on site. The paydirt samples were taken from various stockpiles on the property to better evaluate potential levels of gold. With the technology that Mr. Pearson and his team possess recovering the minutest gold particles is possible, even "flour gold." He was quoted saying, "If you can see it we can recover it with my plant."
Mr. Pearson processed some of the paydirt samples through a small processing plant he owns over in Wilcox, AZ last week. About the results he commented, "The paydirt has revealed very encouraging amounts of gold in it. We are very eager to complete the set up of the processing plant and begin to mine the entire area."
JACKPOT PICTURES (Will be updated shortly)
Last week management was informed by Craig Parkinson, Drake's hired geologist, that the BLM permits have all been completed and the application has been sent to the state department. The approval process is normally 2-3 weeks but due to the relationship Dan Patch has with the BLM it is thought that it could be completed sooner. In addition, because existing work was performed on site years ago, the reclamation bond is expected to be much lower than expected allowing Drake to incur a lower capital expenditure.
Drake Gold's project management team is now preparing a budget and a request for additional equipment. We are staying focused on our low dilution cash flow driven model and are reviewing plans to acquire the needed plant. Through Mr. Pearson, Drake has direct access to key equipment he owns from other placer sites. Management is also reviewing options to acquire equipment in the most cost efficient manner and is dealing directly with lenders while evaluating possible equipment lease financings to complete the purchases as needed.
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ABOUT DRAKE GOLD RESOURCES, INC.
Drake Gold Resources, Inc. (DKGR) is an early-stage mining and energy company that focuses on the exploration and production of precious metals and energy, such as petroleum and coal. Drake Gold has acquired the rights to the Jackpot Placer Project (JPP) in a southwestern section of Arizona. Estimated reserves on the JPP are 205,000 oz. Operations to recover gold are planned as soon as possible.
DKGR intends to be a diversified company by operating in the natural resource, petroleum, and alternative energy markets. As a result of ever-increasing scarcity, the market for natural resources is clamoring for diversification and innovative exploration tactics. Potential opportunities for diversification include gold, silver and other minerals in areas such as Arizona, Oregon, Alaska, British Columbia, the Yukon Territories, and other affiliated sections throughout gold districts in Northern Mexico. Drake Oil & Gas division has prime targets extending from South Texas to the Barnett Shale in Texas, from California to Louisiana.
This press release contains forward-looking statements involving risks and uncertainties including statements regarding the Company's future performance. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual future results may differ materially from those anticipated, depending on a variety of factors which include, but are not limited to, our ability to leverage our technology, manage our growth, protect our intellectual property rights, attract new customers and general economic conditions affecting consumer spending, including uncertainties relating to global political conditions, such as terrorism. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.
Contact: Drake Gold Resources, Inc. Investor Relations Hotline 1-888-601-9983 Email: [email protected] Website: http://www.DrakeGold.com Clayton Smith CEO Cell: 1-310-728-9445 Email: [email protected] Corporate Office Drake Gold Resources Inc. (DKGR) 7150 East Camelback Road, Suite 455 Scottsdale, AZ 85251 Office: 480-467-4469 Email: [email protected]
SOURCE: Drake Gold Resources, Inc.