Dragon Mining reports that further high-grade gold intercepts have been received from delineation drilling of the Sarvisuo lode system at the Orivesi mine, including 2.35 m grading 56.95 g/t gold and 3.65 m grading 106.70 g/t gold. Underground diamond core drilling at Sarvisuo has been conducted since September 2006, to improve confidence in the geometry and grade of the identified Sarvisuo lode system. Results available to date indicate that the previously defined high-grade shoots or pipes extend vertically downwards, with recent high-grade intercepts obtained from between the 320 m and 360 m levels. Results also continue to indicate that the Sarvisuo system, like the previously mined Kutema system 300 m to the east, displays a high degree of grade variability between different pipes and vertically within the pipes themselves.
The Orivesi mine commenced production in 1994, and produced 419,600 oz of gold from a series of near vertical pipe-like lodes. The ore was processed through the Vammala Plant, located 80 km southwest from the mine, which Dragon has just restarted. Mining at Orivesi was undertaken by mechanized methods with access provided by a decline. Two of the five principal pipe-like lodes are known to continue beyond the decline base at 720 m. Intersections at Kutema have been located 1,000 m below the surface.
Dragon started work to re-open Orivesi in mid 2006. A small team of miners was engaged to scale back the decline and access unmined stopes and pillars in the Kutema Lodes. Some areas were rockbolted, cablebolted and shotcreted in order to secure long term stability and safety of the workings. Mine mobile equipment servicing including drilling jumbos, production drilling rigs, charging units, rock bolter, LHDs, carriers, and mine cars commenced and the mine drainage pipeline was upgraded.
Recruitment of miners and shift bosses for two development crews commenced in May 2006. The crews work 12 hour per day shifts, six days a week every second week achieving total advance by the end of 2006 of 1,123 m. The 285 access drive was first extended from the Kutema decline to the Sarvisuo area and the Sarvisuo decline advanced. Advance of the Sarvisuo decline is planned to continue at a rate of 70 m/month with the objective being to reach the 420 m level in October 2007. The first ore will be mucked from the drift headings in the second quarter of 2007 and stoping will be commenced in the third quarter of 2007. Mining of the Kutema stopes and pillars commenced in May and will continue until August 2007 which will allowed the recent start of ore processing at Vammala.
