The Svartliden Gold Mine is located in northern Sweden, 700 kilometres north of Stockholm in the central part of the north-northwest trending “Gold Line”. It represents a greenfields discovery and a style of mineralisation previously not found in the broader region. Dragon now holds contiguous Exploration Permits covering 214.1km² encompassing prospective Palaeoproterozoic meta-sediment-volcanic rock units within 35 kilometres of the gold mine.
Location of the Svartliden Gold Mine
Exploration drilling in the immediate mine area has continued to focus on testing depth extensions of the Svartliden deposit, with a further 29 diamond core drill holes and one re-entry diamond core drill hole (6,355.9 metres) completed since the start of 2009. Intercept highlights received include 10.00m @ 4.65 g/t gold, 5.00m @ 22.25 g/t gold, 5.00m @ 4.78 g/t gold, 6.00m @ 8.81 g/t gold, 11.00m @ 9.83 g/t gold, 5.00m @ 11.24 g/t gold, 8.00m @ 15.59 g/t gold, 5.00m @ 8.67 g/t gold, 5.00m @ 12.85 g/t gold, 14.00m @ 8.57g/t gold, 8.00m @ 6.02 g/t gold, 5.00m @ 15.90 g/t gold and 5.00m @ 9.10 g/t gold.
Independent consultants, Runge Limited have estimated the maiden resource for the depth extensions at 312,000 tonnes grading 7.1 g/t gold. The high grade nature of the resource, its consistent geometry and the proximity to the existing process facility suggests good prospects for the establishment of an underground mining operation.
Svartliden Depth Extension In-situ Mineral Resource, reported at a 3g/t gold cut-off grade (Note 1).
| Tonnes | Grade | Ounces | |
| Indicated | 259,000 | 7.2 | 59,700 |
| Inferred | 53,000 | 6.8 | 11,700 |
| Total | 312,000 | 7.1 | 71,400 |
Gold Tonnage Distributions subdivided by JORC Categories; Ordinary Kriging (OK) grade interpolation, constrained by resource outlines on mineralisation envelopes prepared using a nominal 2g/t gold cut-off and a minimum down hole length of 2 metres. Block dimensions used in the model were 2m NS x 10m EW x 10 m Vertical. A high grade cut of 70g/t was utilised.
Outline of the Depth Extension
The resource is restricted by the limits of drilling, the model extending over 500 metres between local grid profiles 1375 and 1850 and includes a 150 metre vertical interval from the 410mRL to 260mRL (approximately 195 metres below surface). The deposit remains open to the east and down plunge; further drilling is warranted to test for extensions to the resource.
Drilling of the eastern strike extensions continued into 2009, with the completion of a series of holes 300 metres east of the previous limit of drilling. Designed to examine the host geological sequence and a geochemical anomaly generated during 2008, the results of analysis for gold were poor, though low grade intercepts of zinc and silver of 5.00 metres @ 0.4% zinc and 9.00 metres @ 1.23g/t silver from 61 metres in drill hole SV09181 warrant further review.
A series of holes drilled within the immediate mine area further examining the easterly extensions on Profiles 2175 and 2275 were completed. Results remain pending.
In conjunction with the exploration activities in the immediate mine area, regional exploration activities have continued with the completion of 10,282 line kilometre airborne geophysical survey over the entire exploration permit holding. Data from the survey has been processed, the images highlighting the overall prospective nature of the under explored Svatliden region. Interpretation has indentified a number of areas with either magnetic or EM signatures or a combination of both that are analogous with the Svartliden geophysical signature.
Airborne Geophysical Image
A series of geochemical surveys have been completed across six near mine targets – Svartliden E1, Svartliden E2, Svartliden West, Tallberget, Tallberget East and Tallberget North.
Results indicate that though the raw gold values are of a very low-level, the results are encouraging with a number of areas of elevated gold being identified. A small trenching program was undertaken in the area of the peak gold response in the Svartliden West area, exposing an amphibolitic sequence, a portion of which contains disseminated sulphides. The trench area has subsequently been mapped and sampled by shallow percussion drilling and deeper diamond core drilling, the latter failing to return any results of significance.
MMI Gold Response Over the Svartliden West Near Mine Area
Results from further infill sampling at Svartliden West remain pending, whilst bedrock drilling is proposed to be undertaken at the Tallberget area across identified anomalous zones. Follow-up surface sampling at both Tallberget East and Tallberget North is proposed to be undertaken prior to the onset of winter.
Geochemical activities have also expanded beyond the near mine area during the 2009 summer, with first pass sampling completed across priority areas Alsträsket, Finnäs-Risliden-Risliden West area. Results remain pending from the 1225 samples collected to date from these areas.
