FINLAND COPPER-ZINC JOINT VENTURES

Drake’s alliance to identify, explore and develop base and precious metal opportunities with Panoramic Resources Ltd in Scandinavia has generated two Joint Ventures in the highly mineralised copper-zinc belt of central Finland.

The Pyhäsalmi-Vihanti region is the most important zinc mining belt in Finland, with past mining and reserves in excess of 100Mt of ore. The main mine of the belt is Pyhäsalmi, with past production and reserves of 71Mt @ 0.79% Cu, 2.47% Zn, 15 g/t Ag and 0.4 g/t Au.

Pyhäsalmi is an operating, underground mine, and produces three types of concentrates: copper, zinc and pyrite. Copper and zinc concentrates are sold under long-term contracts to smelters in Finland. Pyrite is sold in Europe and Asia. In 2009, 48% of Pyhäsalmi’s revenue was from copper, and 31% was from zinc. Cash operating costs are currently C$36/tonne.

The Joint Ventures cover prospective land south of Pyhasalmi which contains numerous small copper-zinc-silver-gold prospects. The Joint Venture areas have not been subject to modern exploration, and Drake considers that an opportunity exists to define new copper-dominant deposits within these areas.

Drake, on behalf of the Joint Venture, holds claim applications and reservations over approximately 400 square kilometres of prospective geology.

A substantial exploration programme includes a major VTEM airborne electromagnetic survey has been completed, flying 2675 line kilometres.

Drake is applying 21^st century electromagnetic geophysical methods to see much deeper into the earth than the previously used geophysical methods.

Finland is a mining-friendly country with a long history of mining activity and metals production. Mining commenced in 1540 and since then about 270 metal mines have been in operation, the main commodities being copper, nickel, zinc, gold, and chromium. The Vancouver-based Fraser Institute ranked Finland as the second most favourable jurisdiction for mining investment in their 2010 survey. The corporate tax rate is 26%.

Prior to 1995 foreign companies were prohibited from holding mineral rights in Finland and mineral exploration and mining was largely dominated by the State controlled Outokumpu company. Finland has not, therefore, been subjected to the cycles of exploration that have occurred in the main Australian metal regions.

	26th May 2011	Drake starts drilling program in Finland (964kb)
	17th February 2011	Drake to Drill High Quality VTEM Targets (753kb)