As announced previously, our management team made the journey down to our Georgia mining operation site late last month. While on site, they further explored the on-site streams and took 7 trench samplings down to the bedrock. After discovering substantial gold in the on-site streams, we were confident that these samples from the pay dirt would yield promising results. The samples were carefully bagged, labeled, photographed and prepared for shipment. They were sent to ALS Chemex in Nevada for testing. ALS Chemex had completed our previous assays to our satisfaction and we expected efficient and accurate work from them.
Anxious to learn the outcome, we placed a rush on the analysis of these samples and expected to receive the results in fairly short order. Unfortunately, due to an error at the lab, our samples were overlooked and the analysis was not completed. After diligently following up with the labs in both Nevada and British Columbia, we have received a letter of apology from Sonyia Jhooty in the Client Services department of ALS Chemex with her guarantee that the lab will finish their final analysis by March 2nd. She also mentioned that the lab in Reno is reviewing their standard operating procedures to ensure that such a mistake is not repeated in the future. We’ve posted Ms. Jhooty’s letter below and we will announce the labs results once they are received next month.
http://www.drakegold.com/docs/DKGR-Letter-from-ALS-Chemex-02-28-08.pdf
Thursday, February 28, 2008
Wednesday, February 27, 2008
A Trek Down to Georgia
A few weeks ago, Drake Gold’s management took a trip down to our Georgia mining project. Though we’ve been in the preproduction phase for some time now, this was our nearest production visit, as Clayton Smith, our Chairman, got his hands dirty in the Georgia soil. After a few days with rolled up sleeves, muddied boots and sweaty brows, we discovered that our claim appears to be richer in gold than first expected. Clayton’s hard work in the South helped to identify our initial target once production is underway. This target zone comprises approximately 10 acres at the bottom of 2 ridges. We have also learned that the local streams are rich with gold, which is a clear indication that placer and alluvial grades will be strong in the pay dirt areas as well.
Keep watching this blog, as I’ll be posting pictures from this seminal trip! For now, check out the video below of Jan Yarrington explaining the process of searching for Gold in the creek beds.
Read Disclaimer
Keep watching this blog, as I’ll be posting pictures from this seminal trip! For now, check out the video below of Jan Yarrington explaining the process of searching for Gold in the creek beds.
Read Disclaimer
Welcome to the Drake Blog
We at Drake Gold Resources are extremely excited to unveil the newest addition to our website, the Drake Blog. Over the coming months, this site will be the best place to find new information about our latest projects, our newest acquisitions, the most up-to-date news regarding Drake Gold Resources, what we’re doing, what we’re thinking and where we’re going. We hope to make this blog a dynamic, informative and interesting forum for investors, potential investors, and those just interested in our company to gather information and discuss all the latest developments with Drake Gold.
We hope this blog will serve as an insight into how we do things here at Drake. We strive to be innovative and forward thinking in the way that we pick new projects and choose companies with whom we partner. We believe that diversity is the key to survival and success in today’s economic climate. For this reason, we have interests in a wide array of aspects of the natural resource industry. Currently we have identified and begun exploration on several mining projects across North America. We have signed joint venture agreements for the mining of minerals such as gold and silver and a world leader in surface mining technologies, to just name a few. We work extremely hard to keep focused and to stay fresh as we move forward and we hope you will use this blog as a means for checking in and staying up to date!
Read Disclaimer
We hope this blog will serve as an insight into how we do things here at Drake. We strive to be innovative and forward thinking in the way that we pick new projects and choose companies with whom we partner. We believe that diversity is the key to survival and success in today’s economic climate. For this reason, we have interests in a wide array of aspects of the natural resource industry. Currently we have identified and begun exploration on several mining projects across North America. We have signed joint venture agreements for the mining of minerals such as gold and silver and a world leader in surface mining technologies, to just name a few. We work extremely hard to keep focused and to stay fresh as we move forward and we hope you will use this blog as a means for checking in and staying up to date!
Read Disclaimer
Friday, January 25, 2008
Drake Management On-Site Georgia Preproduction Update
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
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
Wednesday, December 5, 2007
Drake Gold Resources: Company Update
Some questions have arisen about our disclosure statement. The following section in particular:
The Company does not operate, or own, or have the present intention to operate or own a mine, plant or other significant property for carrying out its business plan for mining operations.
A number of individuals have singled out this section and have read into it that Drake Gold Resources has no intention of developing its projects. This could not be further from the truth. The above portion of the disclosure statement simply points out that the company will be leasing land and then will make arrangements for mining, most likely contracting the work or aspects of it. This is simply a legal clarification of the nature of how this undertaking will be structured so that there is not a misunderstanding when statements are made referring to projects, i.e. our project does not mean we own the land only or that we have a right to the minerals extracted from it. We do not want to give the impression that the company owns the land, even if it does have the right to earn revenues from it. This is done mostly so that no one believes we could profit from the sale of these lands but only the leases.
We also wanted to point out that as of November, Chairman and Director Clayton Smith has not been involved with any other businesses other than that of Drake Gold Resources. He has not been involved in any of the research required for Clayton’s Corner or any of the other newsletters other than those related to Drake Gold Resources. The continuation of any newsletters outside those related to DKGR is performed with the assistance of others for the sake of the subscriber base and its maintenance.
We also want to give our best to John Cerenzia as he has left the company for personal reasons. He has done an exemplary job in his contributions to DKGR and has given us a great deal of value. This has been in the form of both expertise and wisdom that we carry forward into all of our present and future dealings.
The Company does not operate, or own, or have the present intention to operate or own a mine, plant or other significant property for carrying out its business plan for mining operations.
A number of individuals have singled out this section and have read into it that Drake Gold Resources has no intention of developing its projects. This could not be further from the truth. The above portion of the disclosure statement simply points out that the company will be leasing land and then will make arrangements for mining, most likely contracting the work or aspects of it. This is simply a legal clarification of the nature of how this undertaking will be structured so that there is not a misunderstanding when statements are made referring to projects, i.e. our project does not mean we own the land only or that we have a right to the minerals extracted from it. We do not want to give the impression that the company owns the land, even if it does have the right to earn revenues from it. This is done mostly so that no one believes we could profit from the sale of these lands but only the leases.
We also wanted to point out that as of November, Chairman and Director Clayton Smith has not been involved with any other businesses other than that of Drake Gold Resources. He has not been involved in any of the research required for Clayton’s Corner or any of the other newsletters other than those related to Drake Gold Resources. The continuation of any newsletters outside those related to DKGR is performed with the assistance of others for the sake of the subscriber base and its maintenance.
We also want to give our best to John Cerenzia as he has left the company for personal reasons. He has done an exemplary job in his contributions to DKGR and has given us a great deal of value. This has been in the form of both expertise and wisdom that we carry forward into all of our present and future dealings.
Tuesday, December 4, 2007
Drake Gold Resources Announces Significant Gold Discoveries in Georgia
We see the Richard Claus estimates as our conservative baseline. He limited the samples to a bit over 44 acres and gave us figures that were not only encouraging but a starting point from which we could provide a rationale for moving forward. We look at the amount of gold Claus estimates and we can translate 1.3 grams to approximately .05 ounces. When the minimum per ton target for profitability is .01 ounces the decision becomes clear. Moving forward when we have a project that is projected to be 500% more productive than the minimum is still a very good idea.
We expect though the truth lies somewhere north of the 1.3 grams. Not that we couldn't be more than successful with recovering 54,000 ounces from the initial 44 acres but we are aiming higher. With our Gault Group samples as well as internal samples taken by our geologist Dr. McLemore coming in at between 10 and 15 grams per ton, we would come in a bit conservative with our high-end projections aiming at the 10 gram/540,000 ounces it would yield.
These numbers provide clarity to the decisions we have made so far. The decisions Drake Gold Resources has made are based on our in-house regional expertise. Both our local prospector and former Georgia State Geologist bring extensive knowledge and connections to the table. We have built this knowledge base, with deep ties in the area, so that we could ensure that we could side step complications. Our assets on the ground in the Southeastern United States hold in common with our shareholders an interest in maximizing the profitability of these projects. With the help of both Jan Yarrington and William McLemore PhD, Drake Gold Resources is moving forward with a project that has valuable implications for all of our shareholders.
We expect though the truth lies somewhere north of the 1.3 grams. Not that we couldn't be more than successful with recovering 54,000 ounces from the initial 44 acres but we are aiming higher. With our Gault Group samples as well as internal samples taken by our geologist Dr. McLemore coming in at between 10 and 15 grams per ton, we would come in a bit conservative with our high-end projections aiming at the 10 gram/540,000 ounces it would yield.
These numbers provide clarity to the decisions we have made so far. The decisions Drake Gold Resources has made are based on our in-house regional expertise. Both our local prospector and former Georgia State Geologist bring extensive knowledge and connections to the table. We have built this knowledge base, with deep ties in the area, so that we could ensure that we could side step complications. Our assets on the ground in the Southeastern United States hold in common with our shareholders an interest in maximizing the profitability of these projects. With the help of both Jan Yarrington and William McLemore PhD, Drake Gold Resources is moving forward with a project that has valuable implications for all of our shareholders.
Wednesday, November 28, 2007
Drake Gold Resources, Inc. Releases Comprehensive Corporate Development Strategy
Under the corporate model developed by Drake Gold Resources and its consultants the company has chosen to seek only internal financing by insiders. This financing has been contingent upon repayment from cash flows and not based on diluting the value of Drake with stock issuances. The dedication to this model can be seen in that the company has issued no free trading stock for the repayment of debt. Indeed there has been a stock buyback and cancellation of 70 million authorized shares personally funded by Drake Gold Resources Chairman and Director Clayton Smith. The share cancellation and buyback was achieved through a transaction that will result in no cost to Drake. The shares were acquired by Clayton Smith with personal assets so that the transaction would result in no expense to Drake Gold Resources in debt or future consideration.
Reflecting on this Mr. Smith stated, "I did what I thought was best as a shareholder, not as an insider looking to maximize for only personal benefit. As an investor I wanted to maximize the value of the shares that are held by myself and in turn all of Drake shareholders. I did this by canceling the shares rather than acquiring them for myself. The exchange for the shares was based on a negotiation with a group of shareholders in which I offered equity in another company to them for their shares. The equity came at a substantial cost to me but I found that by just canceling the shares I am building more value for myself as well. This was entirely an off book transaction for Drake. There has been no added debt or issuance of any common or preferred shares to support this transaction. The equity I traded was completely unrelated to Drake but the benefit is clear."
Reflecting on this Mr. Smith stated, "I did what I thought was best as a shareholder, not as an insider looking to maximize for only personal benefit. As an investor I wanted to maximize the value of the shares that are held by myself and in turn all of Drake shareholders. I did this by canceling the shares rather than acquiring them for myself. The exchange for the shares was based on a negotiation with a group of shareholders in which I offered equity in another company to them for their shares. The equity came at a substantial cost to me but I found that by just canceling the shares I am building more value for myself as well. This was entirely an off book transaction for Drake. There has been no added debt or issuance of any common or preferred shares to support this transaction. The equity I traded was completely unrelated to Drake but the benefit is clear."
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