ASX RELEASEDragon Mountain Gold LimitedLevel 2, PDM House, 72...

ASX RELEASE
Dragon Mountain Gold Limited
Level 2, PDM House, 72 Melville Parade, South Perth WA 6151
Stock
Exchange
Codes
ASX: DMG
Issued Shares:
177.8m
Market Cap:
$80.0m
Contacts:
Andrew Richards
Managing
Director
+61(0)42 3044879
Australia
Kevin Tomlinson
Chairman
+44 787 6344700
UK
www.
dragonmountain.
com.au
1 May 2008
101m at 2.53 g/t Au RETURNED IN DRILL RESULTS FROM LIXIAN
HIGHLIGHTS
• Results from a further six diamond core drill holes at the Zhao Gou and Ma
Gou deposits within the Lixian Project continue to provide good results
including 101m at 2.53 g/t Au from hole ZG5210DD4.
• These results are part of the current drilling program focused on producing
JORC compliant resources first at Zhao Gou and then Ma Gou.
• Best results include:
Zhao Gou
101.0m at 2.53 g/t Au including 7.80m at 4.41 g/t Au
2.31m at 4.56 g/t Au
2.90m at 5.25 g/t Au
27.00m at 3.91 g/t Au
8.35m at 3.47 g/t Au including 5.0m at 4.31 g/t Au
29.95m at 2.99 g/t Au including 7.95m at 3.69 g/t Au
8.00m at 4.52 g/t Au
7.0m at 2.55 g/t Au
17.75m at 2.28 g/t Au
10.0m at 2.05 g/t Au
33.23m at 2.27 g/t Au including 8.75m at 5.13 g/t Au
Ma Gou
11.0m at 7.34 g/t Au including 7.0m at 9.76 g/t Au
5.7m at 5.15 g/t Au including 3.2m at 7.40 g/t Au
• DMG currently has 11 drill rigs operating at the Li Ba and Jinshan licence
areas.
- 2 -
Dragon Mountain Gold (ASX:DMG) received more positive news from its
confirmation drilling program at the Zhao Gou and Ma Gou deposits (Figures 1
to 3) within the Lixian Project in central-west China.
The drilling assays demonstrate the continuity and scale of gold mineralisation.
The drilling program is currently focused on confirming and extending the gold
mineralisation outcropping at the Zhao Gou and Ma Gou deposits. These
deposits are part of the widespread gold mineralisation outlined at the Lixian
Project by the Gansu Non-Ferrous Metallurgical Bureau and which are described
in detail in the Company’s Prospectus.
Photos 1 to 5 show some of the recent activity at the Lixian Project.
The gold mineralisation is fine grained and found associated with pyrite and
lesser arsenopyrite in a major shear system within sandstones and siltstones of
the Qinling Fold Belt.
The composited intercepts in Table 1 show significant intersections above a
cutoff grade of 0.5 g/t Au, inclusive of internal sub-grade mineralisation of up to
2m. Within these intersections notable high grade sections are highlighted.
Assay results were received from Intertek Laboratories at Beijing who used aqua
regia analysis with fire assay checks.
Lixian Project Development Timetable
As a result of this work and as described in previous reports, DMG is proceeding
with development according to the following timetable.
• First JORC resource expected from the Zhao Gou deposit in
the June quarter 2008.
• Detailed mine and plant designs for 300,000 tonne per
annum pilot plant at Li Ba completed July 2008.
• Mining Licence Application submitted for Li Ba lease July
2008
• Drilling and studies at the Number 30 deposit completed to
apply for a Detailed Exploration Licence on the Jinshan lease
August 2008.
• Exploration and JORC resource drilling to continue over
multiple deposits on the Li Ba lease and Jinshan areas during
2008 and beyond.
- 3 -
• Preliminary site preparation for pilot plant at Li Ba to
commence in second half of 2008.
• Pilot plant construction to commence as soon as Li Ba Mining
Licence approval is received.
Yours faithfully
ANDREW RICHARDS
Managing Director
The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled
by Steve Boda, who is a Member of the Australian Institute of Geoscientists and Andrew Richards, Managing Director,
who is a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists.
Andrew Richards and Steve Boda are full time employees of the Company.
Andrew Richards and Steve Boda have sufficient experience which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in
the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
Andrew Richards and Steve Boda both consent to the inclusion in the report of the matters based on their information in
the form and context in which it appears.
About Dragon Mountain Gold Limited
• Listed on the Australian Stock Exchange (Code ASX:DMG)
• A gold development and exploration company specialising in China’s
resource sector.
• Highly skilled management with multinational experience.
• 75% ownership of major, advanced stage Lixian gold project.
- 4 -
Table 1. Lixian Project: Drill hole assay results received 1 May 2008
Hole Type Grid Azi Inc Significant intercepts +0.5g/t Au Includes Significant intercepts
E
BJ
Grid
N
BJ
Grid
From
(mdh)
To
(mdh)
Interv
al
(mdh)
Grade
(g/t
Au)
From
(mdh)
To
(mdh)
Interv
al
(mdh)
Grade
(g/t
Au)
Ma Gou ( and No. 6) deposit (Li Ba License)
MG6440D1 Core 6438 3500 180 o -60o 10.8 25.4 14.6 1.45 13 17.2 4.2 2.78
32.5 42.9 10.4 2.36 32.5 38 5.5 3.27
55 66 11.0 7.34 58 65 7.0 9.76
83 85 2.0 3.44 84.1 85.7 1.55 3.96
118 121 3.0 2.85
MG6560D1 Core 6560 3535 180 o -60 o 75 85.7 10.7 1.48 75 80.7 5.7 1.53
84.15 85.7 1.55 3.96
197 205 8.0 2.14 198 203 5.0 2.94
210 213.2 3.25 2.55
221.3 227 5.7 5.15 222 225.2 3.2 7.40
240 243 3.0 2.82
Zhao Gou deposit (Li Ba license)
ZG5140D1 Core 5133 4783 180 o -60 o 33 43 10.0 2.05
51 66 15.0 1.17
68.5 72 3.45 1.36
84 97 13.0 1.56
120 133.2 13.2 0.92
148 165.7 17.75 2.28 157.1 164 6.9 3.70
82 84 2.0 4.35
79.6 94 14.4 2.07
ZG5210D4 Core 5208 4828 180 o -65 o 94 101 7.0 2.55 95.9 98.65 2.75 4.06
105 107.8 2.8 1.78
114 118 4.0 1.59
127 228 101.0 2.53 129.2 137 7.80 4.41
150.2 152.5 2.31 4.56
165.5 168.4 2.90 5.25
196 223 27.00 3.91
ZG5250D3 Core 5246 4764 180 o -60 o 32.3 40.65 8.35 3.47 33 38 5.0 4.31
56 59.85 3.85 2.76
69 84 15.0 1.44 74 76.5 2.5 2.94
89.05 119 29.95 2.99 89.05 97 7.95 3.69
104 112 8.0 4.52
ZG5250D4 Core 5251 4798 180 o -60 o 17.8 22.5 4.7 2.37
25 36.9 11.9 0.78
41 54.7 13.7 1.62
67 71 4.0 2.57
73.77 107 33.23 2.27 75 77 2.0 3.82
96.25 105 8.75 5.13
117 146.9 29.95 1.83 121 128.3 7.24 2.72
142 145 3.0 3.72
162 178.8 16.80 1.53 164.2 173.9 9.76 1.98
- 5 -
Figure 1. Geology and gold deposits within the Li Ba license
Figure 2. Location of Zhao Gou drill holes
- 6 -
Figure 3. Location of Ma Gou (including No 6 deposit) drill holes
Photo 1. Three drill rigs in operation at Zhao Gou
- 7 -
Photo 2. Drill rigs in operation at Zhao Gou
Photo 3. Core recovery at Zhao Gou
- 8 -
Photo 4. Core at Zhao Gou
Photo 5. One of the drill rigs operating at Jinshan (results to be announced)