During our management’s final preproduction trip to our Georgia mining operation site, an initial target has been identified covering an area of approximately 10 acres. The target zone lies at the bottom of 2 ridges where gold has accumulated for untold millennia. After careful review of the property, we have learned that the on-site streams are very rich with gold. This fact is most exciting as it serves as a clear indication that the placer and alluvial grades are strong in the pay dirt areas as well.
The initial two sets of samples were taken from surface levels surrounding the creek within our target area. Samples reported from the Gault Group processed by Hazen Research came back consistently at .566 and .571 ounces per ton. Samples reported by Dr. McLemore processed by ALS Chemex had a maximum record of 10 grams per ton enabling trace elements to be evaluated. Four of the samples again, both hard rock and placer, came in over 10 grams per ton. (Please reference the press announcement on November 30th 2007.)
http://www.drakegold.com/default.asp?Page=PressRelease_42
During this trip, we took 7 trench samplings down to the bedrock. The resulting samples are expected to yield a considerably stronger concentration than the previous two sets, which on their own were highly compelling already. Further exploration has revealed that pay dirt is in the zone from 3-7 feet from the surface with a depth of at least 10 feet, which means that the bedrock depths measure between 13 and 20 feet from the surface—a distance which is both substantial and yet easily reachable by our equipment.
Following these exciting findings, our primary goal is to move this process forward to full production. Our initial step is to set up our processing plant and begin recovering gold as soon as possible. Further, we must work to get any additional equipment on-site in order to speed up production and maximize capacity. Fortunately, due to Georgia’s permitting process being reliant on the sale of minerals rather than the production of them, we can begin production immediately and concurrently with the permitting process, thus eliminating any unnecessary delays.
While the devastating drought in Georgia has been a concern of ours, recent exploration into the area has dispelled our worries and proven that our site is particularly well-suited for our needs. We should have no problems supplying our processing plant with the necessary water for full production capabilities. We already have estimates for the placement of a water well and understand the particulars of the permitting process for such wells that will aid in making our transition into full production a relatively smooth one. Again, Georgia’s permitting process proves simple, allowing us to operate commercial wells producing 100,000 gallons or less without securing a permit. Between the completion of one such well and the recycling of our tailing ponds, water required for ore processing will be in sufficient supply. Additionally, the estimated time frame of well installation to completion runs between 4 to 6 weeks from the day of booking, ensuring a speedy transition time toward full production.
In addition to the supply of water available from a proposed on-site well, further exploration of the site tells us that water levels should rest within 10 feet of the surface. This close proximity to additional water works perfectly to plan. Throughout production, our processing plant will be loaded with the water, sand and mud mix via use of a dredging unit throughout the mined areas, as we bring up pay dirt (dirt, gravel, quartz, white and black sand) into the processing unit. This action will provide an additional steady source of water and help create slurry in advance of processing which will further aid in the ease of production.
We are happy to report the necessary elements of this operation are coming together smoothly, and following a moderately easy transition, this site should be under production.
As per the letter of intent previous released from the largest concrete company in Georgia, we have delivered multiple samples directly to them. They have shown an eager interest in these samples. Plans to take them to the source in coming weeks will assure that we have a buyer for gravel and sands left over from production.
Please reference the initial Georgia Geological Investigation report that was released at the end of last year. It has all the historical and geological information about Georgia Gold and all of our initial results.
http://www.drakegold.com/docs/DKGR-Georgia-Gold-Report-11-30-07.pdf
Friday, January 25, 2008
Subscribe to:
Posts (Atom)
