Dragon Mining has made some interesting finds at its Orivesi mine in Finland. High-grade gold results were obtained from the first nine drill holes of an underground diamond core drilling programme designed to confirm existing resources of the Sarvisuo lode system. Best results received to date include 4.4 m grading 18.17g/t gold, 8.15 m grading 21.72 g/t gold and 7.4 m grading 8.53 g/t gold.
Dragon has been conducting underground drilling at Sarvisuo, approximately 300 m east of the previously mined Kutema lode system at the Orivesi mine, since September 2006. The aim of this has been to confirm the geometry and grade of the gold lodes at Sarvisuo. Drilling commenced on mine level +300, which is approximately 140 m vertically below surface. The initial phase of the confirmation drilling programme comprised a total of 14 close spaced drill holes on one horizontal section.
The first nine completed drill holes intersected the western and central part of the Sarvisuo lode system, and as expected the previously defined lodes have been shown to split into several gold shoots (pipes) similar to those which were mined at Kutema. Three of these defined shoots returned higher-grade intercepts, whilst lower-grade intercepts may indicate the existence of other shoots, which have the potential to develop into higher-grade shoots on levels both up and down dip.
Dragon’s Vammala project is in southern Finland and comprises the Vammala Plant, the Orivesi mine, the Jokisivu Mine and tenement holdings in the gold endowed Tampere Schist Belt and Vammala Migmatite Zone. Total resources in the Vammala region controlled by Dragon currently stand at 2.13 Mt at 7.7g/t gold.
The Vammala Plant operated over a 10 year period on ore from Orivesi, producing in excess of 400,000 oz. Ore was processed through a conventional communition and flotation circuit, at a nominal capacity of 200,000 t/y. Both the mine and the plant were placed on care and maintenance by Dragon in January 2004.
During 2004-2005 Dragon completed diamond core drilling at Orivesi. This drilling was focussed on defining the Sarvisuo lode system. Plans for mining the Sarvisuo lodes include the establishment of access from the production sized exploration drive at the 285 m level. An internal decline will provide level access to the lode position.
Jokisivu is a greenfields discovery. Two areas of mineralization (Kujankallio and Arpola), 200 m apart have been defined. Mineralization is hosted within relatively undeformed and unaltered diorite, in 1 to 5 m wide shear zones that are characterized by laminated, pinching and swelling quartz veins and a well developed moderately east-northeast plunging lineation. The Kujankalio vein sets have been shown by drilling to extend to at least 500 m depth, though resource drilling currently extends only down to the 350 m level. Arpola has only been drilled to the 200 m level.