Dragon Mining Svartliden Reserves Increase & Progress Update - 500 Beiträge pro Seite

[F50]

DGAP-News: Dragon Mining Svartliden Reserves Increase & Progress Update


31.05.2004

Corporate-news announcement sent by DGAP.
The sender is solely responsible for the contents of this announcement.
--------------------------------------------------------------------------------
31 May, 2004

Companies Announcement Office
Australian Stock Exchange
20 Bridge Street
SYDNEY NSW 2000

SVARTLIDEN RESERVES INCREASE AND CONSTRUCTION PROGRESSES
OVER HALF-WAY MARK

Dragon Mining NL (ASX: DRA) is pleased to announce an increase in the
reserve/resource inventory for its Svartliden Gold Project in Sweden, as well as
an update on the progress of construction activities.

Following from drilling carried out earlier this year on the immediate western
extensions of the Svartliden lodes, the mining reserves have increased by 12% to
1.63Mt @ 5.54g/tAu containing 287,000 ozs, up from 256,000 ozs. The total in
pit mineral resources have increased by 21% to 2.22Mt @ 4.54g/tAu containing
324,000 ozs, up from 267,000 ozs. Production schedules for the re-optimized open
pit indicate that in the first year of operations head grade is expected to be
around 7.0g/tAu. Table 1 lists the full reserve and (in pit) mineral resource
statement.

The Svartliden mineralisation remains open along strike to the east and at depth
below the currently planned open pit. Alteration and magnetic signatures
associated with the mineralisation extend further along strike to the west
beyond the current extension drilling. Subsequent drilling campaigns to test
these extensions to the known resources and reserves will be funded out of cash
flow from the mine.

Construction of the Svartliden Mine is now over half way complete. Mining is
scheduled to commence in late July and the first ore will be introduced to the
plant in late August. Progressive wet commissioning of the plant grinding
circuits, leaching, and gold in carbon loading will then result in first gold
production in late September or early October. Production in the first year of
operation is projected to be 70,000 ozs.

Recruitment and training of the operational team is well advanced. The project
is benefiting from availability of qualified and experienced Swedish personnel
and from assistance offered by government authorities in additional specialist
training of experienced mineral processing staff. It is anticipated that 90 to
95% of the workforce will be Swedish nationals.

The commencement of production from the Svartliden Mine will be a major step in
Dragon`s drive to becoming a significant European focussed gold producer. The
next major steps will come from the rapidly advancing gold projects in Finland.
The most advanced being the Jokisivu Project (currently with resources of
309,000ozs) where management is focussed on a development decision by the end of
this year. Dragon is anticipating a short development lead time and very low
capital requirements for Jokisivu because of the project`s location only 40km by
road from Dragon`s Vammala Plant and conceptual plans for mining to begin with
a shallow open cut before heading underground.

DRAGON MINING NL
Dr JAMES SEARLE
M AusIMM, MSMA
Chief Executive Officer and Director

end of message, (c)DGAP 31.05.2004
--------------------------------------------------------------------------------
WKN: 880207; ISIN: AU000000DRA1; Index:
Listed: Freiverkehr in Frankfurt; Australian Stock Exchange

310503 Mai 04

[Plusquamperfekt]

Kann das jemand in einer zusammengefassten Übersetzung wiedergeben Grüssle und Danke