Significant upgrade of resources of Kutema Deposit

24 October 2007 | 16:03 Code : 15766 Geoscience events
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Independent Australian geological consultants Resource Evaluations Pty....
Significant upgrade of resources of Kutema Deposit

  Independent Australian geological consultants Resource Evaluations Pty Ltd has completed Mineral Resource estimates for the Kutema Pillars and Kutema Deeps areas at Dragon Mining Ltd’s Orivesi Gold Mine in Finland.The new resource estimates encompass material associated with the remaining pillars (Kutema Pillars) above the 720m level and the depth extensions of the Kutema lode system (Kutema Deeps) from the 720m level to the 1100m level at the Orivesi Mine. The insitu Mineral Resource at Kutema now totals 178,100 ounces.The resource for the Kutema Deeps represents more than a 100% increase on the previously quoted resource estimate of 70,900 ounces, reported by Outokumpu Mining Oy prior to Dragon’s involvement in the project. The resource for the remnant pillars had previously not been estimated.Minimal underground development and drilling is required to bring the medium grade remnant mineralisation from the Kutema Pillars into production, with mining of pillar material having already commenced in July this year. By the end of September a total of 15,400t of ore has been trucked to the surface.The resource estimated for Kutema Deeps represents a substantial, medium to high grade depth extension below the existing underground mine, which had been developed down to the 720m level. Planning of new development to deepen the mine to the 800m level is in progress and minimal underground development is required to bring this upper part of the new resource into production.A significant amount of drilling is required below the 860m level to accurately define this portion of the new resource, as well as assist with the overall interpretation of the lode structure. A program to undertake underground drilling at Kutema Deeps is in preparation.The addition of resources at Kutema Gold Deposit at Orivesi when combined with those of Sarvisuo and Jokisivu provides the company with a total resource base in southern Finland of 640,000 ounces.As all deposits are within close proximity of the Vammala Production Centre the focus will be to upgrade the resources to reserves and develop additional mining fronts to supplement production from Orivesi.

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