Dragon Mining Limited announced the receipt of the final assays for the infill diamond core drill hole program completed at the Fäboliden Gold Project in northern Sweden.
Final assays received for the 34 hole Fäboliden diamond core drilling program.
New results include 14.00 metres @ 11.05 g/t gold, 13.00 metres@ 8.37 g/t gold and 10.00 metres@ 6.91 g/t gold.
Assays for the 20 holes previously not reported returned a number of significant intercepts including:
14.00 metres @ 11.05 g/t gold from 103.00 metres;
10.00 metres @ 6.91 g/t gold from 63.00 metres;
10.00 metres @ 4.82 g/t gold from 27.00 metres;
16.00 metres @ 3.00 g/t gold from 63.00 metres; and
13.00 metres @ 8.37 g/t gold from 42.00 metres.
These results are in addition to the intercepts 4.00 metres @ 20.70 g/t gold, 5.00 metres @ 5.67 g/t gold, 6.00 metres @ 5.50 g/t gold, 7.00 metres @ 18.24 g/t gold and 16.00 metres @ 2.91 g/t gold, which were first reported to the ASX on the 29 July 2015 – High Grade Results Received from the Fäboliden Gold Project.
The drilling of the 34 hole, 2,941.50 metre WL-66 diamond core infill program was completed in June and was designed to evaluate the near surface, higher grade zone of gold mineralisation in the southern portion of the Fäboliden gold deposit. Drill holes ranged in length from 35.00 to 162.00 metres and improved the density of drilling in this area to a nominal grid base of 25 by 25 metre and 25 by 50 metre basis over a strike length of approximately 400 metres.
The results from the drilling program have shown that the high grade zone displays good continuity both down dip and along strike, the grades received from drilling commensurate with the results from historic drilling. Results for all 34 holes are provided in Table 1, including those previously released to the ASX on 29 July 2015.
Dragon Mining is focussing efforts initially on the higher grade zone of mineralisation within the larger lower grade envelope, with the objective of generating a maiden resource estimate for this zone, which will form the basis of a Pre-Feasibility study for the Fäboliden Gold Project.
The Company also wishes to advise that Mining Inspectorate of Sweden has transferred the Fäboliden K nr 1 Exploitation Concession to Dragon Mining’s wholly owned Swedish subsidiary Dragon Mining AB. This decision however remains subject to an appeal period of 3 weeks, from the date of the transfer decision on the 11 September 2015. The final, legally binding and unappealable approval from the Mining Inspectorate of Sweden for the transfer of the Exploitation Concession to Dragon Mining is the last condition of the Sale and Purchase Agreement and subsequent amendments to this Agreement for the acquisition of the Fäboliden Gold Project.