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Dragon buys Swedish gold mine for A$6.2m

Dragon buys Swedish gold mine for A$6.2m

Photo by Bloomberg

4th February 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed junior Dragon Mining has acquired the Fäboliden gold project, in Northern Sweden, for A$6.2-million.

The junior developer told shareholders on Wednesday that it had executed a conditional sales and purchase agreement with the Bankruptcy Estate of Lappland Goldminers Fäboliden AB to acquire the project.

Under the terms of the agreement, Dragon would make staged payments to the Bankruptcy Estate, the first of which was due within ten business days of receiving approval for the agreement.

The final payment would be due some 18 months after the transaction completion date.

“The company is very pleased to have secured the acquisition of the Fäboliden gold project. Fäboliden represents an advanced project that was previously explored as a large-tonnage, low-grade gold project.

“Dragon, however, intends to focus on the identified narrower, near-surface, higher-grade zones within the lower-grade envelope, that could be more amenable to openpit mining and processing at Svartliden,” said executive director Brett Smith.

He pointed out that metallurgical testwork on and the processing of a 1 000 t sample at the Svartliden plant had confirmed the company’s ability to process material from Fäboliden.

“The existing infrastructure at Svartliden, including the carbon-in-leach plant and tailings disposal, will enable the company to potentially develop an operation at a greatly reduced cost and smaller environmental footprint, compared with the original Fäboliden concept.”

Dragon would immediately start work at the mine, with a diamond core infill drill programme targeting the near-surface, higher-grade gold mineralisation.

The drilling would be supported by an updated environmental permit application for a revised development plan.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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