Resource and Exploration Update - Svartliden Gold Mine, Sweden
14 September 2011
Dragon Mining is pleased to provide a resource update and the results from recent exploration activities carried out at the Svartliden Gold Mine.
The updated Mineral Resource for the Svartliden deposit, depleted to 31 July 2011 totals 1,033,000 tonnes at 4.3 g/t gold for 142,200 ounces and represents an increase of 10% in contained ounces from the September 2010 Mineral Resource at the depletion date.
With the inclusion of stockpiled material, the total resource inventory for the Svartliden Gold Mine as at 31 July 2011 is 1,295,100 tonnes grading 3.7 g/t gold for 157,000 ounces.
Drill testing of the depth extensions of the Svartliden deposit continues, with results received from campaigns that targeted both the eastern and western portions of the deposit.
Results have been received for an 18 hole campaign (Phase 12), which tested a panel in the east between 150 metres and 250 metres below surface. Analysis returned a series of narrow high grade intercepts, including 4.00m @ 9.37 g/t gold, 5.00m @ 6.78 g/t gold, 2.00m @ 8.31 g/t gold and 2.00m @ 9.72 g/t gold, highlighting the down-dip continuation of the north lode in the very eastern portion of the deposit.
Assays have also been received for 5 holes (Phase 11) that targeted the up-dip and lateral extensions of a second lens of mineralisation in the western portion of the deposit. A series of promising intercepts were obtained from this campaign, including 4.00m @ 5.10 g/t gold, 4.00m @ 4.75 g/t gold and 5.00m @5.44 g/t gold and 7.00m @ 6.44 g/t gold, which have provided confidence that the second lens of mineralisation extends laterally and will require further drill testing to better defines its extent and geometry along strike.
The results from each of these campaigns were not available at the time of the resource update and have not been incorporated into the new model.
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