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A golden future A proven gold project in the Murchison District of Western Australia forms the focus for this active explorer and developer which also holds nickel and phosphate interests.

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ragon Resources Ltd (ASX:AAG) is intent on re-starting and expanding one of the Murchison region’s better known historic mining centres at its key asset, The Central Murchison Gold Project (CMGP). Targeting an initial 100,000 ounces of gold production per annum over 10 years Aragon is set to reinvigorate mining activity in this exciting proven gold district. In January 2010 Aragon seized the opportunity to advance toward production by acquiring the region’s Murchison Bell, Day Dawn and Cuddingwarra Goldfields and 33,000ha of contiguous tenements including 1.5 million ounces of total identified JORC compliant mineral resources. In just ten months Aragon has grown this solid foundation to 2.0 million ounces of gold and in December 2010 has announced a Probable Mining Reserve Estimate of 614,000 ounces of gold. The CMGP has proven past production of five million ounces of gold being sourced from both open pit and underground operations across each of the goldfields. In addition to the mining opportunities there remains exciting exploration upside for additional new discoveries. The tenement package covers some of the most prolific greenstone rocks of the Murchison and is host to multi-million ounce gold deposits such as the world class Big Bell Deposit and the high grade Great Fingall Deposit. Aragon’s strategy is to establish a multi-mine gold operation sourcing sustained gold production from the Big Bell Underground Mine being complimented by high grade production from the unified Golden Crown / Great Fingall Underground Mine. Remnant open pit production across the Project could potentially add early production during the development phase of the overall operation. In 2010 Aragon completed a resource estimation at the Big Bell deposit resulting in Total Identified Mineral Resource Estimate (JORC) of 5,161,000 tonnes @ 4.5g/t Au for 748,000 ounces and after a successful drilling campaign has increased the combined underground Total Identified Mineral Resource Estimate (JORC) of both Golden Crown and Great Fingall to 1,947,000 tonnes @ 9.2g/t Au for 581,000 ounces. Highlight gold results from diamond drilling during 2010 at the Great Fingall Reef include 2.9 metres @ 26.55g/t Au from 728.1 metres, including a

Gold

bonanza un-cut assay of 0.35 metres at 212g/t Au; and 2.7 metres @ 5.15g/t Au from 643.3 metres, including 0.4 metres @ 18.15g/t Au. In addition results from drilling at the Golden Crown Reef includes 9.3 metres @ 14.65g/t Au from 712 metres, including 3.4 metres @ 37.54g/t Au; and 5.0 metres @ 10.36g/t Au from 714 metres, including 0.85 metres @ 37.95g/t Au. Importantly these two deposits are located just 500m apart which allows for Aragon to consider these as a unified production source being accessed by a single decline. Past production from the historic Great Fingall and Golden Crown mines is recorded as 1.2 million ounces at an average of 19.5g/t (1500 ounces per vertical metre) and 288,000 ounces at and average of 13.8g/t Au (780 ounces per vertical metre) respectively. 2011 will see Aragon continue to explore for new gold discoveries and further develop the gold resources across each of the goldfields, utalising the additional drill data into feasibility studies during the year. In addition to a compelling grassroots nickel target at Lake Lefroy in Western Australia, Aragon also maintains an interest in the Barrow Creek 1 phosphate prospect in the renowned Georgina Basin in the Northern Territory where Rum Jungle Resources Ltd is earning up to a 70% interest by spending $3,000,000 over five years to earn a 60% interest with an option to earn another 10% interest by spending an additional $2,000,000 over two years. Rum Jungle has announced a new phosphate discovery with the first phase of drilling in 2010 returning shallow high grade phosphate results. Aragon’s core focus is the development of the Central Murchison Gold Project and as the Company continues to de-risk the project into 2011 investors will once again become aware of this prolific mining district and the unique opportunity that Aragon has achieved.

Australasian Mining Review Issue 1 2011  

The Australasian Mining Review is a high quality publication that is destined to become an indispensable tool for all stakeholders and parti...

Australasian Mining Review Issue 1 2011  

The Australasian Mining Review is a high quality publication that is destined to become an indispensable tool for all stakeholders and parti...

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