Dragon Mining continues to unlock the potential of Kuusamo North in Finland

Dragon Mining (ASX: DRA) has received encouraging intercepts including 5.65 metres at 16.56 grams per tonne (g/t) of gold from a phase 5 drilling campaign at the Juomasuo deposit in northern Finland.

In addition, analysis has confirmed the previously released preliminary gold result of 17.75 metres at 16.59g/t.

A number of strong cobalt intercepts were also returned from this recent drilling campaign including 35.4 metres at 1,129 parts per million from 89.9 metres, 20.15 metres at 1,691 parts per million from 24.95 metres, 28.6 metres at 1,665 parts per million from 355.4 metres and 10.1 metres at 2,164 parts per million from 12.5 metres.

Levels of copper, uranium and rare earth elements were also elevated either in conjunction with, or separate from gold mineralisation.

The 17 hole, 2,616 metre campaign was undertaken between August and October 2011 and has confirmed the strike and depth continuations of lodes in the eastern and north eastern portions of the deposit.

Further drilling is required to better determine the extent and geometry of mineralisation.

Drilling of the southeast extensions of the deposit did not identify any significant near surface gold mineralisation.

Results are still pending for all holes completed in the subsequent Phase 6 drilling campaign at Juomasuo, a 3,476 metre campaign that tested the depth and strike extensions of identified lodes in the southern portion of the deposit.


Juomasuo

The Juomasuo gold deposit is the largest of the deposits identified to date in Kuusamo North. It comprises a set of closely spaced sub-parallel lodes, which remain open down plunge.

Two diamond core rigs are active at Kuusamo, with one focused on the Phase 7 campaign following-up historical gold intersections and testing a prominent geophysical anomaly east of the Juomasuo deposit.

The second rig is drilling at Hangaslampi, evaluating the down plunge continuations of this deposit.

The Juomasuo deposit is part of the Kuusamo Gold Project in northern Finland where Dragon continues to deliver a string of bonanza and high grade gold intersections.

Significant recent results include the bonanza 17.6 metres at 34.01g/t gold from 186 metres, which includes the stunning 1.1 metres at 497g/t gold.

In November at Juomasuo, Dragon delivered an increase to the JORC Resource to 1.574 million tonnes at 5.7g/t gold for 285,800 ounces, with a 2g/t gold cut-off.

The potential for the Kuusamo Gold Project is significant, with indications it could be a million ounce gold camp. 

The project is located approximately 700 kilometres northeast of Helsinki. It comprises five known gold deposits with a combined Indicated and Inferred Resource of 460,700 ounces at 4.2 g/t gold.


Bonanza Historic Intercepts

Significantly, Juomasuo has produced some bonanza gold grades including 57.3 metres at 62.56g/t, 3.7 metres at 426.98g/t and 21.3 metres 58.79g/t.

Dragon has defined an exploration target of 600,000 to 800,000 ounces for the Juomasuo deposit.


Article first published at: http://www.proactiveinvestors.com.au/companies/news/23067/dragon-mining-continues-to-unlock-the-potential-of-kuusamo-north-in-finland--23067.html