Dragon Mining (ASX: DRA) has delivered an increase in the JORC Resource for the Juomasuo gold deposit in Finland to 1,574,000 tonnes at 5.7 grams per tonne (g/t) gold for 285,800 ounces at a 2 g/t gold cut-off.
The updated resource, completed by independent consultants Runge Limited, indicates that 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 upgrade is due to the inclusion of 35 drill holes 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.
Importantly, 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 and 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 Kuusamo Gold Project is central to Dragon Mining’s growth strategy and all deposits remain open along strike and with depth. The company plans to significantly increase production in coming years, and is seeking to capitalise on Kuusamo's potential.
Significantly, 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 at 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 at 4.2 g/t.
Several indications of gold mineralisation have also been identified within the surrounding areas and provide the company with a pipeline of prospects to deliver on the potential of the Kuusamo Gold Project.
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.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21539/dragon-mining-lifts-jorc-resource-at-juomasuo-gold-deposit-to-285800ozs-21539.html
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