Dragon Mining (ASX:DRA) has released the final batch of results from its infill drill program at the Faboliden project in Sweden. These final 20 holes of the program were quite interesting with for instance 14 meters at in excess of 1/3 of an ounce per tonne of rock and 13 meters at 8.37 g/t gold.
As all intercepts were quite close to surface (with mineralization starting at 27-103 meters), all of these drill intercepts are actually amenable for open pit mining and that’s exactly what makes this exploration update interesting. The infill drill results confirm the continuity of the higher grade gold zones and also confirm the historical drill results that were drilled on the property.
Dragon Mining will now complete a maiden resource estimate at the higher grade zone and this should boost the economics of the project as the company intends to use the higher-grade resource estimate as the basis for a pre-feasibility study. Dragon Mining had a working capital position of A$26M as of at the end of June and this seems to confirm its current A$15M market capitalization is (too) low.
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Disclosure: The author holds no position in Dragon Mining. Please see our disclaimer for current positions.
