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Dragon Mining boosts Svartliden gold resource to 157,100 ounces

Dragon Mining (ASX: DRA) in a market update has announced a boost to the gold resource at the Svartliden Gold Mine in Sweden, after receiving results from the latest round of exploration activities.

With the inclusion of stockpiled material, the total resource inventory for the mine is 1,295,100 tonnes at 3.7 grams per tonne (g/t) gold for 157,100 ounces.

The 2011 resource update was undertaken by company geologists using Ordinary Kriging (OK) grade interpolation, constrained by resource outlines based on mineralisation envelopes that were prepared using a nominal 1.3g/t gold cut-off and a minimum down hole length of 2 metres.

The update was then audited by independent resource consultants Runge Limited.

The increase reflects the defining of additional mineralisation associated with the North Lode in the eastern portion of the deposit, and adjustments to both mineralisation and granite envelopes arising from a greater density of grade control and exploration drilling.

Drill testing of the depth extensions is ongoing.


Phase 12 drilling results

The results from the 18 hole Phase 12 drilling campaign included narrow high grade intercepts such as:

- 4.00 metres at 9.37g/t gold;
- 5.00 metres at 6.78g/t gold;
- 2.00 metres at 8.31g/t gold; and
- 2.00 metres at 9.72g/t gold.

The importance of these results is that they highlight the down-dip continuation of the north lode in the very eastern portion of the deposit.

Results have also been received for 5 holes from Phase 11, which targeted the up-dip and lateral extensions of a second lens of mineralisation in the western portion of the deposit.

Highlights included:

- 4.00 metres at 5.10g/t gold;
- 4.00 metres at 4.75g/t gold;
- 5.00 metres at 5.44g/t gold; and
- 7.00 metres at 6.44g/t gold.

Dragon said that the significance of these results are that they have provided confidence that the second lens of mineralisation extends laterally. Additional drill testing will now be required to better define the extent and geometry along strike.

The results from each of these campaigns were not available at the time of the resource update and have not been incorporated into the new model.

Results are also pending for an 8 hole Phase 13 campaign that tested the portion of the Svartliden deposit beneath the western end of the open-pit, where drilling was designed to link potential gold bearing units to the existing underground resource.

Two diamond core rigs continue to be active at Svartliden, one advancing a program at the Far East prospect, 800 metres east of the Svartliden open pit where recent drilling intersected material characteristic of the Svartliden host sequence.

The second rig has commenced a 9 hole, 2225 metre campaign.