HANHIMAA

Hanhimaa Gold Project

North of the Arctic Circle, near the mineral rich Sirkka Line Dragon Mining maintains an extensive tenement holding, which includes the highly prospective exploration project, Hanhimaa.

The potential of the Hanhimaa area was identified in 2002 when indications of gold were found through geochemical sampling and trenching. Since then, three gold prospects (Kiimalaki, Kellolaki and Kiimakuusikko) have been located within the 100 to 200 metre wide domain of strongly sheared and hydrothermally altered rocks, in the northern part of the north-south trending Hanhimaa Shear Zone. This shear zone closely resembles the Kiistala Shear Zone, 10 kilometres to the east, which hosts the  Kittila Gold Mine, one of Europe’s largest known gold deposits and several other gold occurrences.

Location of the Hanhimaa Gold Project

Drilling at Kiimalaki has returned a number of encouraging intercepts including 11.70m @ 4.48 g/t gold, 7.50m @ 5.88 g/t gold and 5.00m @ 5.96 g/t gold. At Kellolaki, 2 kilometres to the north, limited drilling has yielded promising results including intercepts of 8.00m @ 1.95 g/t gold and 8.55m @ 1.51 g/t gold. The strike and depth extensions of both prospects remain open.

At Kiimakuusikko, 4 kilometres south of Kiimalaki gold bearing zones were identified in 2008 from trenching and drilling. Better drill intercepts from this area include 3.45m @ 3.94 g/t gold, whilst rock samples returned 3.82 g/t gold, 954 g/t silver, 0.36% copper, 8.09% lead, 0.42% zinc and 1.97% antinomy. Strike and depth extensions of this prospect remain untested.

Hanhimaa Gold Project Targets

A series of other drill ready targets have been identified by till and bedrock geochemical sampling throughout the project area, the central and northern areas the focus of earlier exploration, the southern portion having only been subjected to limited  testing.

Recent activities at Hanhimaa have been limited  to the compilation and review of exploration data as exploration has been directed  to areas proximal to the Company’s operating mines in southern Finland and Sweden and on the highly prospective Kuusamo Gold Project.

Field activities may  recommence in 2012, with efforts focused on the drill testing of identified targets, with the aim of establishing a resource inventory base from which the project can potentially advance from exploration to operational status.