SOURCE: Drake Gold Resources, Inc.

September 22, 2006 16:17 ET

Drake Gold Resources, Inc. Is Pleased to Announce the Completion of Its Initial Assessment of the Jackpot Placer Gold Project and Announcement of Operations

CENTURY CITY, CA -- (MARKET WIRE) -- September 22, 2006 -- Drake Gold Resources, Inc. (PINKSHEETS: DKGR) is pleased to announce the completion of its initial assessment of the Jackpot Placer Gold Project located about seven miles southeast of the town of Quartzsite in La Paz County, Arizona. Independent geologist, Craig Parkinson, identified approximately 2,050,000 cubic yards of gold-bearing material containing an estimated 205,000 ounces of placer gold resources using a possible grade of .100 ounces per yard. This resource estimate far exceeds the original estimate of 60,000 ounces by previous geologists, and translates into an average of .0667 ounces of gold per ton across the three claims comprising 200 acres.

The numbers reflected in the finalized geological report are conservative thereby revealing the potential for yielding even higher production values. Mr. Parkinson has stated that the Jackpot property "yields above average potential especially considering the gold obtained from past production on the property was extracted using inadequate methods in the past."


Total estimated gold bearing placer gravel: 2,050,000 cubic yards.
Estimated gold per ton: .0667 OZ.  (Based on 1 ton = 1.5 cubic yards)
Total preliminary estimated ounces of gold:  205,000 OZ.
Total dollar potential:  205,000 OZ. multiplied by $500 = $102,500,000
(Gross Proceeds)
Current Parkinson Geologic Services Jackpot Placer Property Mining Evaluation available here in Acrobat PDF format (PDF reader) (Sept. 22nd, 2006):

BLM Operation Permits

With the initial geological report completed, Drake will now complete its application for the BLM Operation Permits. The permit application should take about a week to complete and contains information such as the location of operations, the current land disturbance level created by prior operations, the estimated new disturbance that is to be created by projected operations, and the length of time the permit is to be in effect. After the permit is submitted, a reclamation bond amount will be set. This bond is to ensure that the land is restored back to within set guidelines after the termination of operations. The approval process for the BLM Operation Permit is normally 2-3 weeks.


While waiting for the BLM Operation Permits to be issued, Drake will continue to acquire the equipment necessary to begin operations. To date, Drake has secured the use of the most expensive single piece of equipment necessary for a placer operation: the Caterpillar D9. This heavy bulldozer now resides on the Jackpot property and will be used to start stockpiling gold bearing material next week in preparation for processing. In addition, the water well which resides on the property has been repaired and is functioning. Equipment still needed are a Scrubber, Trommel, Concentrator, and a 100kw generator. Drake has located each of these items and is currently in talks to acquire them via lease or outright purchase. Normally, using this equipment, Drake could expect to process 40-45 cubic yards of gold bearing material an hour. However, utilizing the expertise of Norm Pearson, his "Rock Box" and constructing a plant, Drake is projecting with the upgrades to process up to 100 - 300 cubic yards an hour or 150 - 450 tons at its peak. Using the estimate of .0667 ounces of gold per ton, the operation may yield 10 - 30 ounces of gold an hour.

Interim CEO Clayton Smith was excited to say, "Although we were hoping to release the information previously, we are now happy to say that we will be starting operations as early as next week. Yesterday, Norm Pearson, Drake's Project Manager, and Craig Parkinson, Drake's Geologist, discussed the plan of operations after review of the report and have now outlined the next few steps that will make Drake Gold a precious metal producer."

Commenting on the addition of other experienced mining management, he continued to say, "We are now bringing in a mining team that will ensure the success of Drake's mining operations. This includes a new CFO, several directors, a compliance attorney, a business analyst and eventually a new CEO and President once I believe I have brought Drake to the producing and compliant level that will guarantee growth of shareholder value. Announcements will be made starting next week due to the fact we are now starting operations."

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 Information