Mineral Resources and Ore Reserves

The estimates for Mineral Resources and Ore Reserves as of 31 December 2021 were disclosed to the  Stock Exchange of Hong Kong Limited (“HKEx”) in compliance with the reporting guidelines as set-out in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”) on:

  • 23 March 2022 – Dragon Mining’s Mineral Resources and Ore Reserves Updated.
 
Estimation Governance Statement

Dragon Mining Limited (“Dragon Mining” or the “Company”) have ensured that the Mineral Resource and Ore Reserve estimates are subject to good governance arrangements and internal controls. The Mineral Resources and Ore Reserves were undertaken by independent mining consultants MoJoe Mining Pty Ltd (“MJM”) in Western Australia, an organisation whose personnel have exposure to best practices in modelling and estimation methods. MJM personnel have also undertaken reviews of the quality and suitability of the underlying information, which included a site visit of the Company’s mining projects in 2019. In addition, Dragon Mining’s management regularly carries out reviews and audits of internal processes and of external contractors that are utilised by the Company.

Dragon Mining reports Mineral Resources and Ore Reserves at least annually in compliance with the reporting guidelines as set out in the JORC Code.  If there are any material changes to its Mineral Resources or Ore Reserves during the course of the year the Company is required to, and promptly reports these changes.

Mineral Resources

Statement of Mineral Resources at 31 December 2021 (Mineral Resources are reported inclusive of Ore Reserves)

Mineral Resource estimates are not precise calculations, being dependent on the interpretation of limited information on the location, shape and continuity of the occurrence and on the available sampling results. The quantities contained in the above table have been rounded to two significant figures to reflect the relative uncertainty of the estimate. Rounding may cause values in the table to appear to have computational errors.

Mineral Resources are reported on a dry in-situ basis.

RF – Revenue Factor.

 

Reporting Cut-off Grades

Jokisivu Gold Mine – 1.3 g/t gold

Based on operating costs, mining and processing recoveries from Jokisivu actuals and a gold price of US$1,800 per troy ounce extrapolated for the potential economic extraction of the resource at a level approximating 120% of an average consensus forecast gold price of US$1,500 per troy ounce that was generated from annual consensus gold forecasts over the mine life period.

 

Kaapelinkulma Gold Mine – 0.9 g/t gold for the South gold occurrence above 0mRL, 1.5 g/t gold for the South gold occurrence below 0mRL, 1.5 g/t gold for the South gold occurrence in the Butterfly Exclusion Zone and 0.9 g/t gold for the North deposit.

Based on operating costs, mining and processing recoveries from Kaapelinkulma actuals and a gold price of US$1,800 per troy ounce extrapolated for the potential economic extraction of the resource at a level approximating 120% of the long term average consensus forecast gold price of US$1,500 per troy ounce.

 

Orivesi Gold Mine – 2.6 g/t gold

Based on operating costs, mining and processing recoveries from Orivesi actuals and a gold price of US$1,770 per troy ounce extrapolated for the potential economic extraction of the resource at a level approximating 120% of the short term consensus forecast gold price of US$1,475 per troy ounce. Details of this Mineral Resource were released to the HKEx on the 27 March 2020 – Resources and Reserves Updated Dragon Mining’s Nordic Production Centres. 

 

Fäboliden Gold Mine – 1.1 g/t gold for material inside the RF 120% Pit Shell and 2.0 g/t gold for material outside the RF 120% Pit Shell.

Based on costs and recoveries from the updated Fäboliden Life-of-Mine study and a gold price of US$1,800 per troy ounce extrapolated for the potential economic extraction of the resource at a level approximating 120% of the long term average consensus forecast gold price of US$1,500 per troy ounce.

 

Svartliden Gold Mine – 1.0 g/t gold for open-pit material and 1.70 g/t gold for underground material

Based on updated estimates for mining costs and a gold price of US$1,500 per troy ounce, extrapolated for the potential economic extraction of the open-pit and underground resource at a level approximating 115% of the short term consensus forecast gold price of US$1,260 per troy ounce.  The Svartliden Mineral Resources remain unchanged since 31 December 2016.  Details of this Mineral Resource were released to the Australian Securities Exchange (“ASX”) on the 28 February 2017 – Mineral Resources Updated for the Nordic Production Centres.

Ore Reserves

Statement of Ore Reserves at 31 December 2021

Ore Reserve estimates are not precise calculations, being dependent on the interpretation of limited information on the location, shape and continuity of the occurrence and on the available sampling results. The quantities contained in the above table have been rounded to two significant figures to reflect the relative uncertainty of the estimate. Rounding may cause values in the table to appear to have computational errors.

Ore Reserve estimates are reported on a dry tonne basis.

Jokisivu Gold Mine – The economic in-situ stope ore cut-off grade is based on a variable gold price ranging from US$ 1,730 per troy ounce gold in the short term to US$1,428 per troy ounce gold in the long term that was generated from annual consensus gold forecasts over the mine life period, a EUR:USD exchange rate of 1.16, process recovery of 87%, mining factors and costs.

Fäboliden Gold Mine – The in-situ Ore cut-off grade is 1.33 g/t gold is based on a long term consensus forecast gold price of US$1,500 per troy ounce, a USD:SEK exchange rate of 8.66, process recovery of 80%, mining factors and costs.

Competent Persons Statements

The information in this report that relates to Mineral Resources for the Jokisivu Gold Mine, Kaapelinkulma Gold Mine and Fäboliden Gold Mine dated 31 December 2021 were previously released to the HKEx on 23 March 2022 – Dragon Mining’s Mineral Resource and Ore Reserve Estimates Updated.  This document can be found at www.hkex.com.hk (Stock Code: 1712). It fairly represents information and supporting documentation compiled or supervised by Mr. Shaun Searle who is an associate of MoJoe Mining Pty Ltd and a member of the Australian Institute of Geoscientists.  Mr. Searle has sufficient experience that is relevant to the styles of mineralisation and types of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Searle has previously provided written consent for the 23 March 2022 release.

The Company confirms that it is not aware of any new information or data that materially affects the Mineral Resources as reported on the 23 March 2022, and the assumptions and technical parameters underpinning the estimates in the 23 March 2022 release continue to apply and have not materially changed.

 Mr. Neale Edwards BSc (Hons), a Fellow of the Australian Institute of Geoscientists, who is a full-time employee of Dragon Mining and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2012 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves confirms that the form and context in which the Mineral Resources dated 31 December 2021 presented in this report have not been materially modified and are consistent with the 23 March 2022 release. Mr. Neale Edwards has provided written consent approving the use of previously reported Mineral Resources in this report in the form and context in which they appear.

The information in this report that relates to Mineral Resources dated 31 December 2019 for the Orivesi Gold Mine was previously released to the HKEx on the 27 March 2020 – Resources and Reserves Updated for Dragon Mining’s Nordic Projects. This document can be found at www.hkex.com.hk (Stock Code: 1712). It fairly represents information and supporting documentation that was compiled or supervised by Mr. David Allmark who is a full-time employee of RPM Advisory Services Pty Ltd and a Registered Member of the Australian Institute of Geoscientists.  Mr. Allmark has sufficient experience that is relevant to the styles of mineralisation and types of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the JORC Code 2012 Edition. Mr Allmark has previously provided written consent for the 27 March 2020 release.

The Company confirms that it is not aware of any new information or data that materially affects the Mineral Resources as reported on the 27 March 2020, and the assumptions and technical parameters underpinning the estimates in the 27 March 2020 release continue to apply and have not materially changed.

 Mr. Neale Edwards BSc (Hons), a Fellow of the Australian Institute of Geoscientists, who is a full-time employee of Dragon Mining and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2012 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves confirms that the form and context in which the Mineral Resources dated 31 December 2019 presented in this report have not been materially modified and are consistent with the 27 March 2020 release.  Mr. Neale Edwards has provided written consent approving the use of previously reported Mineral Resources in this report in the form and context in which they appear.

The information in this report that relates to Mineral Resources dated 31 December 2016 for the Svartliden Gold Mine were previously released to the ASX on the 28 February 2017 – Mineral Resources Updated for Dragon Mining’s Nordic Projects.  This document can be found at www.asx.com.au (Code: DRA).  It fairly represents information and supporting documentation that was compiled or supervised by Mr. Jeremy Clark who was a full-time employee of RPM Global Asia Limited and a Registered Member of the Australasian Institute of Mining and Metallurgy at the time of the report in 2017.  Mr. Jeremy Clark has sufficient experience that is relevant to the styles of mineralisation and types of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the JORC Code 2012 Edition. Written consent was previously provided by Mr. Jeremy Clark for the 28 February 2017 release.

The Company confirms that it is not aware of any new information or data that materially affects the Mineral Resources as reported on the 28 February 2017, and the assumptions and technical parameters underpinning the estimates in the 28 February 2017 release continue to apply and have not materially changed.

 Mr. Neale Edwards BSc (Hons), a Fellow of the Australian Institute of Geoscientists, who is a full-time employee of Dragon Mining and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2012 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves confirms that the form and context in which the Mineral Resources dated 31 December 2016 presented in this report have not been materially modified and are consistent with the 28 February 2017 release.  Mr. Neale Edwards has provided written consent approving the use of previously reported Mineral Resources in this report in the form and context in which they appear.

The information in this report that relates to Ore Reserves for the Jokisivu Gold Mine and the Fäboliden Gold Mine dated 31 December 2021 were previously released to the HKEX on 23 March 2022 – Dragon Mining’s Mineral Resource and Ore Reserve Estimates Updated.  This document can be found at www.hkex.com.hk (Stock Code: 1712).  It is based on information compiled and reviewed by Mr. Joe McDiarmid, who is a Chartered Professional of the Australasian Institute of Mining and Metallurgy and is a full-time employee of MoJoe Mining Pty Ltd. Mr. McDiarmid has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he has undertaken to qualify as a Competent Person, as defined in the 2012 Edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves. Mr. McDiarmid has previously provided written consent for 23 March 2022 release.

The Company confirms that it is not aware of any new information or data that materially affects the Mineral Resources as reported on the 23 March 2022, and the assumptions and technical parameters underpinning the estimates in the 23 March 2022 release continue to apply and have not materially changed.

 

Mr. Neale Edwards BSc (Hons), a Fellow of the Australian Institute of Geoscientists, who is a full-time employee of Dragon Mining and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2012 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves confirms that the form and context in which the Mineral Resources dated 31 December 2021 presented in this report have not been materially modified and are consistent with the 23 March 2022 release. Mr. Neale Edwards has provided written consent approving the use of previously reported Mineral Resources in this report in the form and context in which they appear.

The information in this report that relates to Exploration Results fairly represents information and supporting documentation that was compiled by Mr. Neale Edwards BSc (Hons), a Fellow  of the Australian Institute of Geoscientists, who is a full-time employee of the company and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Persons as defined in the 2012 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr. Neale Edwards has provided written consent approving the inclusion of the Exploration Results in the report in the form and context in which they appear.