2008-05-08 11:30 ET - News Release
ATLANTA, GA -- (MARKET WIRE) -- 05/08/08
Drake Gold Resources (PINKSHEETS: DKGR) announced today that Drake and Texas-based Eagle Mining have entered into a formal Joint Venture Agreement on their fully permitted and producing Abigail and Donovan projects, located in Mohave county Arizona and comprising 300 acres of two mining claims of 140 and 160 acres.
The Abigail and Donovan projects piqued Drake's interest due to the revelation of high concentrations of gold as evidenced in geological assays completed by Southern Spectrographic Laboratory, Inc.
Southern Spectrographic Laboratory, Inc.Assays based on concentrated materialMarch 6, 2007 February 27, 2007Report#: 0392-05-798 Report#: 0292-26-727Sample: AZ V-230 Sample: A-2Gold 6.00 oz/ton Gold 0.005% 1.45 oz/tonPlatinum < 0.01 Platinum < 0.001 < 0.03Palladium 1.00 Palladium 0.012 3.50Rhodium < 0.01 Rhodium < 0.001 < 0.03Iridium < 0.01 Iridium < 0.001 < 0.03
Eagle has their own processing/smelting facilities and possess several key pieces of equipment, including, but not limited to, a reverberatory grinder, a hammermill, electronic concentrators, and multiple pieces of earth-moving equipment. Under the agreement Drake will retain 47% of the net proceeds in exchange for Drake furnishing additional dry-processing equipment and jointly covering daily operational expenses. Eagle will continue to be the operator and manager of the operation, as well as maintaining all permits and associated fees. Mining is expected to recommence by end of second quarter of 2008.
This agreement with Eagle Mining is a direct result of our distribution joint-venture with AERO Mining Technologies. Drake's relationship with AERO is generating opportunities for future turn-key, permitted projects of this nature that show compelling geological assays and are production-ready.
Drake Gold Management has prepared a full report of the Eagle Mining Joint Venture including historical data, BLM permits, equipment details, plans of expansion, etc. which is expected to be released this week.
Year of the Profit, Oilseeker