OVERVIEW

Both in Sweden and Finland major mining and metal extraction industries have been in operation over many centuries. For much of the twentieth century these industries were primarily controlled by large Nordic companies and para-state organisations, with exploration largely driven by the need to support the existing mining and metal extraction infrastructure. As a result, the metallogenic potential of the Fennoscandian Shield, which extends across much of Sweden and Finland, remains under explored, in comparison to other similarly endowed Shields in Africa, Canada and Australia.

In the mid 1990’s there was a change in government policy to encourage broader based participation in the mining industry. Attracted by the potential of the Nordic Region, Dragon has now been active in this area for over a decade and has the necessary local experience and projects to continue its growth.

Dragon’s strategy is for production growth from  its two production centres,  ensuring that both centres have a highly prospective land holding that would allow each to grow into a multi-mine operation. Svartliden in Sweden was the first of these production centres to be developed in 2005, whilst Vammala in southern Finland became the second, recommencing operations in June 2007.

Longer term growth will come from opportunities advancing through the exploration pipeline. These opportunities range in status from the highly prospective  Kuusamo gold-cobalt project to the  early stage  exploration projects,  in northern Finland. 

Dragon Mining has maintained a strong commitment to exploration with 60 kilometres of diamond core drilling completed in 2011.  Drilling was directed to areas proximal to its two production centres and the Kuusamo Gold Project, yielding a series of exceptional results that highlighted the potential of the project pipeline.

The Company will continue with its aggressive approach to exploration during 2012 as it strives to deliver on its growth objectives, with 100,000 metres of drilling budgeted.