Dragon Mining (ASX: DRA) has intercepted further high grade gold from drilling at the Sarvisuo West area at the Orivesi Gold Mine in southern Finland, in holes that are near to the existing underground development.
Highlights include 1.75 metres at 27.16 grams per tonne (g/t) gold, 1.80 metres at 9.26 g/t gold and 8.35 metres at 4.67 g/t gold.
Orivesi is of strategic importance to the company as it is located only 80 kilometres northeast of the Vammala Production Centre, which currently processes ore from Orivesi, and will soon process ore sourced from the Jokisivu Gold Mine.
The planned 45 hole, 8,100 metre program is on-going, and is being undertaken from drill stations located on the 525 metre and 710 metre drives. A total of 38 holes have been completed and analysis for gold has been received for 35 holes.
The mine was initially in operation between 1992 and 2003 and produced 422,000 ounces of gold from a series of near vertical pipe-like lodes at Kutema, with the ore processed at the Vammala Production Centre.
Two of the five principal lodes at Kutema continue beyond the historical extent of the decline at the 720 metre level into the Kutema Deeps area.
This area is now subject to a program of staged development, with the initial stage extending from the 720 metre to the 800 metre level.
In December 2010 Dragon committed to the development of the Kutema Deeps deposit at the Orivesi Gold Mine, considering it an important milestone as the resource will provide for a five year mine life at Orivesi.
An internal study completed on Kutema Deeps shows a robust project with a significant return on capital over at least the next five years.
The Orivesi Gold Mine hosts a Measured, Indicated and Inferred Resource totalling 220,700 ounces grading 5.9 g/t gold.
The Vammala Plant is a 600,000 tonne per annum crushing, milling and flotation facility which was successfully recommissioned in June 2007 and is being operated on a 24 hour basis, 6 days on, 4 days off roster.
The environmental permit for the Vammala Production Centre is valid until 2016.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/17529/dragon-mining-intercepts-more-high-grade-gold-at-orivesi-mine-in-finland-17529.html
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