News

July 08, 2008

Dragon Mountain Gold Delivers A Million JORC Ounces On Its Lixian Project In China

By Alastair Ford

Dragon Mountain Gold has delivered a JORC inferred resource of 1.1 million ounces of gold on the Zhao Gou deposit at its Lixian project in Sichuan province, China. The company’s shares went for what managing director Andrew Richards called “a quick run” after the news was released on 30th June, advancing from A35 cents to A50 cents, before settling back down to A41 cents. Considering the state of the market at the time, that wasn’t a bad result at all. But getting on for two weeks later and the shares are now down at A33.5 cents - lower than they were before the JORC numbers came out. It just goes to show that things are no easier in Australia, where mining is centre of the economic stage, than they are anywhere else. That’s even though gold is trending slightly up.

It was a good milestone for Dragon Mountain to reach, though. Following on from Andrew Richards’ presentation at our 53rd Minesite forum on 19th June, a small but growing band of followers was waiting to see if he could deliver on the first of many promises. In fact he delivered on this one so well that Dragon Mountain’s shares were briefly suspended on the Australian Exchange. Not for any sinister reasons, but because, as he explains, “we thought we were going to have between 600,000 and...