Resource Increase For The Kuusamo Gold Project, Finland
03 November 2011
Dragon Mining is pleased to announce an update of the Mineral Resource for the Juomasuo gold deposit, to 1,574,000 tonnes @ 5.7 g/t gold for 285,800 ounces at a 2 g/t gold cut-off, which has been completed by independent consultants Runge Limited.
The updated resource returned an increase in tonnes and contained ounces and closer spaced drilling has resulted in the number of ounces in the Indicated category rising to 82% (up from 46% of total ounces in the December 2010 resource estimate).
The increase results from the inclusion of 35 drill holes (10,736.7 metres) completed since November 2010, which were directed at confirming the geological model and testing the immediate extensions of identified zones of gold mineralisation both along strike and with depth. Whilst programs of bulk density determination, re-logging of historic core, check assaying and data validation have significantly improved the quality of the resource model.
Juomasuo is the largest of the five gold deposits identified to date on the Kuusamo Gold Project. It comprises a set of closely spaced sub-parallel lodes, which remain open along strike towards the north and south, as well as down plunge.
The robustness of the gold mineralisation near surface for each of the five deposits has provided confidence to lower the reporting cut-off grade from 2 g/t to 1 g/t gold for the Kuusamo Gold Project. At the revised cut-off grade the Juomasuo Mineral Resource totals 1,955,000 tonnes @ 4.9 g/t gold for 305,600 ounces. This lifts the total gold resource inventory of the Kuusamo Gold Project to 460,700 ounces grading 4.2 g/t.
The Kuusamo Gold Project is the highlight of Dragon Mining's growth strategy. Three Diamond core drill rigs continue to progress programs at both Juomasuo and Hangaslampi at Kuusamo North, targeting depth and strike extensions. Results for the 26 completed holes not included in the Juomasuo resource update and new drilling will be incorporated into the next resource update, which will be undertaken in early 2012.
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