Dragon Mining high grade gold hits point to potential below Kuusamo Project

Dragon Mining (ASX: DRA) has returned more strong gold intercepts at the Juomasuo gold deposit confirming the continuity of the lodes, whilst also highlighting the potential of the mineralised system below the existing resource base.

Results include 4.15 metres at 6.10 grams per tonne (g/t) gold and 5.25 metres at 5.11 g/t gold from the last three holes of the second phase of drilling at the Juomasuo, located at the Kuusamo Gold Project in northern Finland.

Highlights from the program include:

- 13.65 metres at 3.13 g/t gold;
- 9.95 metres at 3.81 g/t gold; and
- 34.90 metres at 9.30 g/t gold.

The nine hole, 3,500 metre second phase of drilling was undertaken between February and April 2011 and was designed to examine the strike and depth extensions of the known lodes in the southern portion of the Juomasuo deposit.

In addition, the company said multi-element analysis has returned a number of strong cobalt intercepts and elevated levels of rare earth elements (REE) "either in conjunction with gold mineralisation or separately, as well as the occurrence of sporadic elevated levels of copper and uranium."

The Kuusamo Gold Project is located about 700 kilometres northeast of Helsinki. It comprises five known gold deposits with a combined Indicated and Inferred Resource of 2.19 Mt at 5.4 g/t gold for 383,500 ounces.

The deposits remain open along strike and in the case of the Juomasuo and Sivakkaharju deposits, down plunge.

Numerous indications of gold mineralisation have also been identified within the surrounding areas. These indications provide a pipeline of prospects to advance and serve to highlight the overall potential of the Kuusamo
region.

The Juomasuo gold deposit comprises a set of closely spaced sub-parallel lodes, which strike northwest-southeast and plunge steeply to the south and the southwest.

Dragon plans to recommence drilling at the end of July following the summer break, with two diamond core drill rigs ramping up activities on a 14 hole, 4,200 metre program targeting the strike and depth extensions of the known lodes in the northern portion of this deposit.

From the first of the 11 holes already completed in this program, preliminary results include 8.95 metres at 11.42 g/t gold and 8.40 metres at 10.06 g/t gold from the top portion of KS/JS-128.

A third rig will kick off drilling on the final 10 holes of a 21 hole, 2,100 metre program that has been designed to test the Hangaslampi deposit, 1,000 metres south of Juomasuo.

Hangaslampi represents a moderately dipping, medium to high grade zone of gold mineralisation that remains open in all directions.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/17940/dragon-mining-high-grade-gold-hits-point-to-potential-below-kuusamo-project-17940.html