Monday, 25th September 2006 (2310 views)

Drake Gold has announced that the results from the first assessment of its project in the US have been received.

The Jackpot placer gold project is seven miles to the south-east of the town of Quartzsite in La Paz County, Arizona.

The results from the latest estimate are conservative and Drake reports that the production could therefore stand at a higher level than was previously predicted.

Independently contracted geologist Craig Parkinson calculated that the property held approximately 2.05 million cubic yards of mineralised material. In it, he estimated that 205,000 ounces of placer gold with a possible grade of 0.1 ounces per yard.

Mr Parkinson commented: "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."

Past estimates had placed the amount held there at just 60,000 ounces of gold. The company hope to begin mining operations in the near future, according to interim chief executive Clayton Smith.

"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. We are now bringing in a mining team that will ensure the success of Drake's mining operations."

 

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