It said the results from the final two drill holes continued to confirm the Salave gold resource's expansion potential by intersecting high-grade mineralisation within and beyond the constraints of the current mineral resource model.

The best results from the final drilling was 23.3m at 29.1g/t gold from 16.8m, including 9.1m at 65.1g/t Au from 171.8m and 3.4 at 148g/t Au from 176m; 4.8m at 16.3g/t Au from 230.7m; and 14m at 10g/t Au from 209.9m, including 4.1m at 24.5g/t Au from219.8m.

Black Dragon expects the results from the drilling programme to have a positive impact on the next mineral resources estimate update, which is expected early in the December quarter.

This in turn will form the basis for a preliminary economic assessment focusing on a new underground mine plan, which it plans to complete by the end of the year.

Salave has existing measured and indicated resource of 6.52 million tonnes at 4.51g/t Au, for 944,000 ounces of gold.

 Black Dragon's shares dropped 2.86% Tuesday to A17c (US12.3c).