Dragon Mining (ASX: DRA) has commenced an initial campaign of 1,700 metres of diamond core drilling at the Kuusamo Gold Project in north-eastern Finland and will target the extensions of the “B” lode at the Juomasuo deposit.
The campaign represents the first phase of a 20,000 metre drilling program that will be completed over the next twelve months.
At the Juomasuo deposit a total of 298 holes have previously been drilled between 1985 and 2003 for an advance of 17,191 metres.
The more recent drilling was completed by a subsidiary of Outokumpu Mining Oy, which returned a number of bonanza drill intercepts including 19.20m @ 179.52 g/t gold, 3.70m @ 426.98 g/t gold, 19.60m @ 63.70 g/t gold, 4.12m @ 265.50 g/t gold and 8.00m @ 48.85 g/t gold.
Dragon Mining has also recently instigated an update of the Mineral Resources for the five known gold deposits within the Kuusamo project area and lodged application for additional ground, increasing the Kuusamo holding to 247.65km².
Peter Cordin, executive chairman, said “we have been able to mobilise a drill rig to the Kuusamo project area on short notice and are eagerly awaiting the results from the extensive program that will be undertaken over the next twelve months.
"This project is an integral part of Dragon’s longer term growth strategy, as we seek to significantly increase production in the coming years.”
The Kuusamo Gold Project is located approximately 700 kilometres north-northeast of Helsinki and comprises of a series of contiguous tenements that encompass five known gold deposits, which host a combined Inferred Mineral Resource of 1.35Mt grading 4.1 g/t gold (178,800 ounces).
Each of the deposits remains open, both along strike and at depth.
Numerous indications of gold mineralisation have also been identified within the surrounding areas. These indications provide Dragon with a pipeline of prospects to advance and serve to highlight the overall potential of the Kuusamo region.