By: Nick Slinde
Georgia
We are continuing to gain support for a zone change from contiguous property owners in an effort to eliminate the existing 500 ft buffers which severely restrict the site’s mineability. Provided sufficient support is secured, we will seek 3rd party verification of past assays and proceed with the land use process. Timelines will be provided once available.
Arizona
Eagle Mining is in the process of contacting the parties who drafted the original bulk sampling applications for the AZ property. As was previously posted, discussions with BLM Arizona, equipment manufacturers and industry consultants suggest that a re-organization of the current workable area depth can and should be expanded to improve the projects footprint. We will evaluate overall feasibility once it is determined whether the area can be expanded.
General Update
Funding for operations, investigation, and advancement of existing and future projects has and will be a challenge for Drake considering its current share structure and the state of the market. Further, creating cash flow and increasing long term shareholder value and sustainability remain our main concerns. To this end, Drake has expanded its current business plan to facilitate the creation of revenue through strategic alliances and market expansion. We are evaluating many possible "turn-key" opportunities and are nearing completion of our due diligence on several of these possibilities. Initial terms are being discussed.
Drake is also working to utilize current management strengths and experience to explore opportunities in the real estate market. Recognizing Drake's main objectives and the precarious state of the economy, we are carefully researching each opportunity and will take no action until we are certain the project will fulfill the needs of the company both short and long term.
Thursday, October 30, 2008
Tuesday, September 30, 2008
CEO Nicholas J. Slinde Updates the Shareholders on Georgia and Arizona Projects
by: Nick Slinde
Based on the numerous issues Drake's former management had advancing the Georgia and Arizona Projects, I felt it necessary to reevaluate Drake's projects and determine if the same were truly viable from a monetary and/or regulatory perspective. That review has raised certain concerns about both projects which are outlined below:
Georgia
As a preliminary matter, a number of shareholders have inquired as to the legitimacy of the assays previously taken on site. Although we believe these assays are accurate and verifiable, it is prudent to have them confirmed by an independent third party. However, before incurring that expense, I felt additional investigation was needed to determine the true area of mineability and regulatory impact a free flowing stream located on site would have on the project. Applicable code requires a 500' buffer between mining activities and adjacent property lines which severely restricts the mineable area. To expand the mineable area, it is necessary to secure the rights to neighboring parcels and include them in the zone change application. Drake's current Lessor has been enlisted to help facilitate these acquisitions. This process should be completed before expending additional resources, monetary or otherwise, on the project. With respect to the stream, its central location further restricts an already limited mineable area. Applicable code requires a 50' buffer between workable area and water resource. To minimize impact and ensure an economically feasible project, I believe Drake must first acquire rights to the neighboring properties to effectively expand the mineable area. Provided additional properties can be secured, every effort will be made to prove up the sites’ potential yield through the confirmation of existing assays and ready the properties for production.
Arizona
I was similarly concerned with the restricted area of mineablity and reclamation process allowed/required under the current bulk sampling permit. Under the current Mining Notice, the dimensions in which active mining can occur were severely limited by the filed notice and existing bond. The BLM has confirmed that this area can be expanded by way of revising the mining notice and increasing the bond, if necessary. However, before this avenue is pursued, I believe it necessary to have non-refined assays taken from site evaluated, as existing assays measure the gold content of already refined samples. Management is working to arrange for the removal of non-refined on site material for testing. These processes, although time-consuming, are necessary to confirm the viability of the project. This process is ongoing and updates will be given as information is made available.
Where We Go from Here…
Funding for operations, project investigation and the advancement of projects, existing and future, remain a major concern. The current state of the financial markets has made raising capital extremely difficult and the shareholders' overwhelming opposition to a share restructuring severely limited our ability to generate much-needed funds. Nonetheless, we are working through a number of creative concepts for expanding Drake's operations to create revenue through strategic alliances and market expansion. Specifics about any such opportunities will be passed on once it is determined the same offer realistic growth opportunities for Drake. Ultimately, it is our shareholder base that will facilitate executing on these opportunities. Your continued involvement and support are appreciated.
As for the blog updates, I originally intended on giving bi-weekly updates and apologize they have not come that often. In the short term, I think it is more appropriate to provide updates whenever information worthy of distribution becomes available. This ultimately may be less frequent than originally proposed but will create what I hope to be a more fluid dialogue between management and the shareholders.
Please continue directing any questions and comments you may have to CEO@drakegold.com. As I am receiving a number of emails daily, it is becoming increasingly difficult to respond each of them directly. However, I promise any inquiries are being reviewed and considered at our weekly management meetings.
Based on the numerous issues Drake's former management had advancing the Georgia and Arizona Projects, I felt it necessary to reevaluate Drake's projects and determine if the same were truly viable from a monetary and/or regulatory perspective. That review has raised certain concerns about both projects which are outlined below:
Georgia
As a preliminary matter, a number of shareholders have inquired as to the legitimacy of the assays previously taken on site. Although we believe these assays are accurate and verifiable, it is prudent to have them confirmed by an independent third party. However, before incurring that expense, I felt additional investigation was needed to determine the true area of mineability and regulatory impact a free flowing stream located on site would have on the project. Applicable code requires a 500' buffer between mining activities and adjacent property lines which severely restricts the mineable area. To expand the mineable area, it is necessary to secure the rights to neighboring parcels and include them in the zone change application. Drake's current Lessor has been enlisted to help facilitate these acquisitions. This process should be completed before expending additional resources, monetary or otherwise, on the project. With respect to the stream, its central location further restricts an already limited mineable area. Applicable code requires a 50' buffer between workable area and water resource. To minimize impact and ensure an economically feasible project, I believe Drake must first acquire rights to the neighboring properties to effectively expand the mineable area. Provided additional properties can be secured, every effort will be made to prove up the sites’ potential yield through the confirmation of existing assays and ready the properties for production.
Arizona
I was similarly concerned with the restricted area of mineablity and reclamation process allowed/required under the current bulk sampling permit. Under the current Mining Notice, the dimensions in which active mining can occur were severely limited by the filed notice and existing bond. The BLM has confirmed that this area can be expanded by way of revising the mining notice and increasing the bond, if necessary. However, before this avenue is pursued, I believe it necessary to have non-refined assays taken from site evaluated, as existing assays measure the gold content of already refined samples. Management is working to arrange for the removal of non-refined on site material for testing. These processes, although time-consuming, are necessary to confirm the viability of the project. This process is ongoing and updates will be given as information is made available.
Where We Go from Here…
Funding for operations, project investigation and the advancement of projects, existing and future, remain a major concern. The current state of the financial markets has made raising capital extremely difficult and the shareholders' overwhelming opposition to a share restructuring severely limited our ability to generate much-needed funds. Nonetheless, we are working through a number of creative concepts for expanding Drake's operations to create revenue through strategic alliances and market expansion. Specifics about any such opportunities will be passed on once it is determined the same offer realistic growth opportunities for Drake. Ultimately, it is our shareholder base that will facilitate executing on these opportunities. Your continued involvement and support are appreciated.
As for the blog updates, I originally intended on giving bi-weekly updates and apologize they have not come that often. In the short term, I think it is more appropriate to provide updates whenever information worthy of distribution becomes available. This ultimately may be less frequent than originally proposed but will create what I hope to be a more fluid dialogue between management and the shareholders.
Please continue directing any questions and comments you may have to CEO@drakegold.com. As I am receiving a number of emails daily, it is becoming increasingly difficult to respond each of them directly. However, I promise any inquiries are being reviewed and considered at our weekly management meetings.
Thursday, September 11, 2008
Share Structure Update
By: Nicholas J. Slinde, CEO and Chairman
I want to thank all of you for your comments over the last week. Understandably, most inquiries concerned my plans for the company and specifics about pending projects, cash flow needs, pinksheets status and share restructuring. It was necessary to perform my own due diligence with respect to the Georgia and Arizona projects. The deficiencies in the base documents have been resolved and we are attempting to reengage our third party consultants and assemble project timelines. Numerous opportunities for generating cash are being explored. I believe our current cash needs are manageable and every effort is being made to advance the projects as soon as possible. We are working hard to finalize the revised financials/disclosures for submission to pinksheets and expect to have that completed within the next couple of weeks.
In recent months, the Drake Gold Resources Board of Directors has reviewed a range of unsolicited proposals relating to the expansion of Drake’s core business. A number of said proposals included a requirement that Drake adjust its share structure through a reverse split or an increase in authorized shares. Albeit unrelated, it has also come to our attention that many in our shareholder base are concerned about such an adjustment. Drake’s Board of Directors has determined that adding an additional corporate direction, undergoing a reverse split or increasing authorized shares would not be in the best interest of shareholders and will detract from Drake’s core business.
As such, our primary focus has been and will remain the exploration and production of precious metals as well as other mining related ventures.
I want to thank all of you for your comments over the last week. Understandably, most inquiries concerned my plans for the company and specifics about pending projects, cash flow needs, pinksheets status and share restructuring. It was necessary to perform my own due diligence with respect to the Georgia and Arizona projects. The deficiencies in the base documents have been resolved and we are attempting to reengage our third party consultants and assemble project timelines. Numerous opportunities for generating cash are being explored. I believe our current cash needs are manageable and every effort is being made to advance the projects as soon as possible. We are working hard to finalize the revised financials/disclosures for submission to pinksheets and expect to have that completed within the next couple of weeks.
In recent months, the Drake Gold Resources Board of Directors has reviewed a range of unsolicited proposals relating to the expansion of Drake’s core business. A number of said proposals included a requirement that Drake adjust its share structure through a reverse split or an increase in authorized shares. Albeit unrelated, it has also come to our attention that many in our shareholder base are concerned about such an adjustment. Drake’s Board of Directors has determined that adding an additional corporate direction, undergoing a reverse split or increasing authorized shares would not be in the best interest of shareholders and will detract from Drake’s core business.
As such, our primary focus has been and will remain the exploration and production of precious metals as well as other mining related ventures.
Thursday, September 4, 2008
Letter to the Shareholders from New CEO Nicholas J. Slinde
Dear Shareholders:
By way of introduction, my name is Nicholas J. Slinde and I am the new Chairman and CEO for Drake Gold Resources, Inc. I wanted to take this opportunity to express my gratitude to the management and shareholders at large for taking the time to discuss their concerns about Drake's current condition and offer constructive ideas for obtaining profitability and enhanced shareholder value moving forward.
In the end, we all share a common interest in Drake's future success. I believe each of you will be pleasantly surprised by what I hope to be a new era of corporate governance. This will include a fundamental commitment to transparency and maintaining an open dialogue with our shareholder base.
Each of your comments and suggestions are enormously important to Drake's success and will be given due consideration as we attempt to move towards sustained profitability. With this in mind, I will be taking the time to publicly answer shareholder questions that I feel to be most pertinent to investors as a whole. Please write me anytime at CEO@DrakeGold.com. My answers will be posted on biweekly to the Drake Blog (http://drakegold.blogspot.com)
I know that this organization and its shareholders have gone through some difficult times. I also understand that many of you are frustrated by what is perceived to be lack of carry through and execution. All I ask is that you work with and not against me as I try to turn things around. I assure you that I am personally committed to the enterprise and will do my best to enhance shareholder value and stabilize the company's operations.
Thank you for your anticipated support and patience.
Nick
By way of introduction, my name is Nicholas J. Slinde and I am the new Chairman and CEO for Drake Gold Resources, Inc. I wanted to take this opportunity to express my gratitude to the management and shareholders at large for taking the time to discuss their concerns about Drake's current condition and offer constructive ideas for obtaining profitability and enhanced shareholder value moving forward.
In the end, we all share a common interest in Drake's future success. I believe each of you will be pleasantly surprised by what I hope to be a new era of corporate governance. This will include a fundamental commitment to transparency and maintaining an open dialogue with our shareholder base.
Each of your comments and suggestions are enormously important to Drake's success and will be given due consideration as we attempt to move towards sustained profitability. With this in mind, I will be taking the time to publicly answer shareholder questions that I feel to be most pertinent to investors as a whole. Please write me anytime at CEO@DrakeGold.com. My answers will be posted on biweekly to the Drake Blog (http://drakegold.blogspot.com)
I know that this organization and its shareholders have gone through some difficult times. I also understand that many of you are frustrated by what is perceived to be lack of carry through and execution. All I ask is that you work with and not against me as I try to turn things around. I assure you that I am personally committed to the enterprise and will do my best to enhance shareholder value and stabilize the company's operations.
Thank you for your anticipated support and patience.
Nick
Wednesday, September 3, 2008
Georgia Lease Update
By: Drake Management
Drake management has succeeded in restructuring its Georgia lease agreements, by signing directly with the property owner. As previously announced, Company management determined that the previous structuring of lease agreements were insufficient to protect shareholder value. Specifically, the Joint Venture agreement with Southern Mining Exploration was void and the leases held by SME were invalid.
Upon making this discovery, Company management placed a hold on all forward movement with this project until new agreements were in place. After exploring every option, Drake terminated its relationship with SME and entered into lease agreements directly with the Georgia lessor, who is fully supportive of Drake’s endeavors in the area. With the new lease structure, Drake maintains full control over all operational decisions, actions and management.
Drake management has succeeded in restructuring its Georgia lease agreements, by signing directly with the property owner. As previously announced, Company management determined that the previous structuring of lease agreements were insufficient to protect shareholder value. Specifically, the Joint Venture agreement with Southern Mining Exploration was void and the leases held by SME were invalid.
Upon making this discovery, Company management placed a hold on all forward movement with this project until new agreements were in place. After exploring every option, Drake terminated its relationship with SME and entered into lease agreements directly with the Georgia lessor, who is fully supportive of Drake’s endeavors in the area. With the new lease structure, Drake maintains full control over all operational decisions, actions and management.
Thursday, August 28, 2008
Aero Contract Dissolution
By: Drake Management
After careful review of the existing agreement and the continued inability to reach a mutually beneficial arrangement, Drake management has decided to terminate its relationship with Aero Surface Mining Technologies. This decision resulted primarily from Aero's 1) failure to meet its contractual obligations and deliver the Explorer 500 to Georgia as scheduled, 2) failure to provide proof they were adequately licensed, bonded and insured, and 3) failure to provide adequate assurances that such a relationship would be in the best interests of our shareholders.
After careful review of the existing agreement and the continued inability to reach a mutually beneficial arrangement, Drake management has decided to terminate its relationship with Aero Surface Mining Technologies. This decision resulted primarily from Aero's 1) failure to meet its contractual obligations and deliver the Explorer 500 to Georgia as scheduled, 2) failure to provide proof they were adequately licensed, bonded and insured, and 3) failure to provide adequate assurances that such a relationship would be in the best interests of our shareholders.
Wednesday, August 27, 2008
Drake Gold Announces the Appointments of New Chief Executive Officer and New Chief Financial Officer
By: Drake Management
Drake Gold Resources Inc. is pleased to announce Nicholas J. Slinde as its new Chief Executive Officer and Chairman of the Board of Directors and Stephen D. Wilson as its new Chief Financial Officer, Chief Compliance Officer and Treasurer.
Prior to joining Drake, Mr. Slinde worked for a number of private law firms assisting emerging business owners gain market share and implement sound corporate strategy. Mr. Slinde also spent a number of years as General Counsel and Vice President of Land Acquisitions and Development for a large real estate development company in Portland, Oregon, helping identify acquisition targets, securing financing for those projects, taking them through the land use process and completing construction. Mr. Slinde also founded Yeti Enterprises in 2004 to act as the holdings vehicle for a number of real estate redevelopment projects in Portland, Oregon. As CEO of Yeti, Mr. Slinde has increased the reach and size of the Company by conceptualizing and implementing innovative investment strategies.
Mr. Slinde's unique background creates a valuable blend of expertise stemming from his education and experience as a lawyer and his successes in business/project development. His business experience grants Mr. Slinde considerable insight into Drake's current position, as he is adept at utilizing innovative methods for raising capital and executing Company goals. Mr. Slinde's varied perspective will lend strategic illumination to Drake's current operational plans. His leadership of the Board will further bolster Drake's dedication to corporate governance, while proving to be an invaluable asset to the management team.
Mr. Wilson has a rich and varied background managing corporate finances, preparing documents by the GAAP standard, including SEC filings and serving in leadership positions at several public companies. Most recently he served as Chief Executive Officer, Chief Financial Officer and Director of California Clean Air Inc. Mr. Wilson brings his expertise and dedication to Drake’s operational team. His financial and management experience will serve as a crucial asset to our operations as Drake continues to develop and expand in the coming months.
Chief Operating Officer James Goularte remarked, “The recent additions to our core management team in conjunction with our due diligence into all aspects of company business, represent our continued investment and focus on corporate governance and financial transparency. Their involvement will be vital in creating a solid foundation by which this company will develop.”
Drake Gold Resources Inc. is pleased to announce Nicholas J. Slinde as its new Chief Executive Officer and Chairman of the Board of Directors and Stephen D. Wilson as its new Chief Financial Officer, Chief Compliance Officer and Treasurer.
Prior to joining Drake, Mr. Slinde worked for a number of private law firms assisting emerging business owners gain market share and implement sound corporate strategy. Mr. Slinde also spent a number of years as General Counsel and Vice President of Land Acquisitions and Development for a large real estate development company in Portland, Oregon, helping identify acquisition targets, securing financing for those projects, taking them through the land use process and completing construction. Mr. Slinde also founded Yeti Enterprises in 2004 to act as the holdings vehicle for a number of real estate redevelopment projects in Portland, Oregon. As CEO of Yeti, Mr. Slinde has increased the reach and size of the Company by conceptualizing and implementing innovative investment strategies.
Mr. Slinde's unique background creates a valuable blend of expertise stemming from his education and experience as a lawyer and his successes in business/project development. His business experience grants Mr. Slinde considerable insight into Drake's current position, as he is adept at utilizing innovative methods for raising capital and executing Company goals. Mr. Slinde's varied perspective will lend strategic illumination to Drake's current operational plans. His leadership of the Board will further bolster Drake's dedication to corporate governance, while proving to be an invaluable asset to the management team.
Mr. Wilson has a rich and varied background managing corporate finances, preparing documents by the GAAP standard, including SEC filings and serving in leadership positions at several public companies. Most recently he served as Chief Executive Officer, Chief Financial Officer and Director of California Clean Air Inc. Mr. Wilson brings his expertise and dedication to Drake’s operational team. His financial and management experience will serve as a crucial asset to our operations as Drake continues to develop and expand in the coming months.
Chief Operating Officer James Goularte remarked, “The recent additions to our core management team in conjunction with our due diligence into all aspects of company business, represent our continued investment and focus on corporate governance and financial transparency. Their involvement will be vital in creating a solid foundation by which this company will develop.”
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