Dragon Mining (ASX: DRA) has unearthed a new zone of gold mineralisation at the Svartliden Mine in northern Sweden after receiving assays from the first three diamond drill holes at the Far East target.
The three holes are from a six hole program designed to follow-up promising geology identified from earlier drilling in the Far East area, which is located about 800 metres east of the open pit.
The best intercept was 6 metres at 6.69 grams per tonne (g/t) gold at a vertical depth of about 350 metres below surface. Each hole intersected material characteristic of the Svartliden host sequence and results for the other holes are pending.
The results provide encouragement for the company as they have been achieved within six months of acquiring full ownership of the mine.
Peter Cordin, executive chairman, said “the discovery of mineralisation and the strong intercept at the Far East target is extremely encouraging for the company.
"The Far East target is just one of a number of near mine areas be evaluated over the coming months, as the company strives to extend the life of the Svartliden mine.”
The Far East target was identified through an ongoing program of geological and geophysical modelling of the near mine area.
The company will commence planning of the next phase of drilling upon completion of the current campaign, with the objective to better define the extent and geometry of the identified mineralisation.
On September 14 Dragon announced a boost to the gold resource at the Svartliden Gold Mine. With the inclusion of stockpiled material, the total resource inventory for the mine is 1,295,100 tonnes at 3.7g/t gold for 157,100 ounces.
Svartliden is an open pit mining operation with ore processed on site through a carbon in leach plant, with first production in March 2005. By 30 September 2011 the operation had processed 2.65 million tonnes at 4.55g/t gold for 273,674 ounces of gold.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21444/dragon-mining-discovers-new-gold-zone-east-of-svartliden-mine-in-sweden-21444.html
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