Dragon Mining (ASX: DRA) has selected Lemminkäinen Sweden to complete the decline and undertake underground mining at the Svartliden Gold Mine, for a cost of US$6.5 million.
Svartliden is developing into a significant project for Dragon Mining, with just last month Proven and Probable gold ounces were boosted by 87% to 103,310 ounces.
The increase came from the positive decision to deepen the current open pit mine, and also includes ore from the planned underground mine and existing stockpiles.
The complete resource is; 1.015 million tonnes at 3.2 grams per tonne (g/t) gold for 103,310 gold ounces.
The new underground mine development comprises 3500 metres of decline and lateral development, and will commence from a depth of 80 metres, which is the bottom of the open pit mine.
The forecast turnaround time is one year, with the first underground ore to be processed in early 2012.
The Lemminkäinen Group operates in all areas of the construction sector and is a major player in the industry, with net sales of EUR 2 billion in 2010.