Dragon Mountain Gold Uncovers Gold Potential at Avalon, Raises $670K for Expansion
Dragon Mountain Gold Limited reports promising drilling results at its Avalon Project and prepares for further exploration at Cawse, supported by a successful $670,000 capital raise and strategic board appointment.
- Initial Avalon drilling reveals hydrothermal alteration and elevated gold concentrations
- Preparations underway for targeted drilling at the Cawse Project
- Successful capital raise of $670,000 through convertible loans and IR agreements
- Appointment of experienced Non-Executive Director Gernot Abl to the board
- Company maintains a cash position of $366,000 with disciplined expenditure
Exploration Progress at Avalon
Dragon Mountain Gold Limited (ASX: DMG) has delivered encouraging results from its recent drilling program at the Avalon Project during the December 2024 quarter. The initial phase involved four reverse circulation (RC) drill holes totaling 612 metres, targeting a significant 12-kilometre geological contact zone characterized by sheared, altered, and quartz-veined rocks. Two holes intersected shear zones exhibiting hydrothermal alteration signatures and elevated gold levels, identified through portable X-ray fluorescence (pXRF) analysis indicating element associations such as Fe-Cu-As-Mn-Sn-Zn-S. These findings suggest potential for higher-grade gold mineralisation along this structurally complex contact, providing a clear focus for subsequent exploration efforts.
Advancing the Cawse Project
Building on prior surface sampling and field assessments, DMG has been refining its drill program design for the Cawse Project. The upcoming drilling campaign aims to test extensions of known mineralisation adjacent to the historic Cawse Find open pit. This methodical approach, grounded in comprehensive ground truthing, seeks to validate and expand existing mineralisation models, potentially unlocking additional value within the project area.
Strengthening Financial Position
To underpin its exploration ambitions, DMG successfully raised $550,000 through Convertible Loan Agreements, complemented by a $120,000 investor relations service agreement structured as convertible loans, totaling $670,000. This capital injection bolsters the company’s exploration budget, easing near-term financial pressures and enabling sustained focus on resource expansion at Avalon and the forthcoming Cawse drilling program. At quarter’s end, DMG reported a cash balance of $366,000, reflecting prudent financial management amid ongoing exploration expenditures.
Corporate Developments and Governance
In a notable boardroom change, DMG appointed Mr. Gernot Abl as Non-Executive Director, succeeding Dimitri Bacopanos. Mr. Abl brings over two decades of expertise in law, corporate finance, and strategic consulting, alongside entrepreneurial experience. His current leadership roles at ASX-listed companies DorsaVi Limited, Nelson Resources Limited, and Peako Limited position him as a valuable addition to DMG’s governance and strategic oversight.
Outlook and Strategic Focus
DMG continues to actively identify and evaluate new complementary projects to enhance shareholder value through potential acquisitions. The company’s disciplined expenditure, with $166,000 spent on exploration during the quarter and no development or production costs incurred, underscores its commitment to advancing early-stage assets. With a clear pathway defined for both Avalon and Cawse projects, supported by fresh capital and strengthened leadership, DMG is well-positioned to navigate the next phases of its exploration journey.
Bottom Line?
With promising drill results and fresh capital secured, Dragon Mountain Gold is poised to deepen its exploration footprint, but upcoming funding rounds will be critical to sustaining momentum.
Questions in the middle?
- Will further drilling at Avalon confirm higher-grade gold zones along the sheared contact?
- How will the upcoming Cawse drilling program refine the existing mineralisation model and impact resource estimates?
- What strategic initiatives will new director Gernot Abl champion to accelerate DMG’s growth trajectory?
