Dragon Mining (ASX: DRA) has intersected gold as expected from the Hangaslampi gold deposit at the Kuusamo Gold Project in northern Finland, where historically some very high grade near surface discoveries have been made.
Highlights from the first four holes include 5.00 metres at 3.40 grams per tonne (g/t) gold from 15 metres, 2.50 metres at 9.33g/t gold from 15 metres, and 4.70 metres at 2.11g/t gold from 46 metres.
What was less expected from the results and has the potential to add an extra dimension to the project was the presence of elevated cobalt and rare earth elements, either in conjunction with, or separate from gold mineralisation.
Multi-element analysis also identified the occurrence of sporadic elevated levels of uranium.
The current Hangaslampi gold deposit hosts 55,700 ounces at 6.2g/t gold, and is located just 1 kilometre south of the Juomasuo gold deposit, within the Juomasuo-Hangaslampi Trend.
Hangaslampi comprises a series of moderately dipping, closely spaced lodes that have been defined over a strike length of 270 metres and to a depth of 90 metres.
All lodes remain open along strike and with depth.
Drilling at Hangaslampi recommenced in May 2011 with a 20 hole 2,200 metre program to test the extensions of identified lodes.
To date, sixteen holes for 1,703 metres have been drilled, with the remaining holes expected to be completed during August.
Dragon has a target of 150,000 to 300,000 gold ounces at Hangaslampi.
A history on Hangaslampi
The Geological Survey of Finland and Outokumpu Mining Oy drilled 60 holes for 8,346 metres at Hangaslampi between 1990 and 2003, which identified some high grade near surface intercepts.
The highest grade hits included 4.50 metres at 41.86g/t gold, 5.90 metres at 30.79g/t gold, and 13.00 metres at 20.41g/t gold.
These were supported by some broader intersections such as 23.50 metres at 13.25g/t gold, 21.05 metres at 13.70g/t gold, and 17.00 metres at 8.69g/t gold.