DGR Global (ASX: DGR) is a resource project generator and investment company focused on creating exploration and development companies in a wide array of commodities, including copper, gold, nickel, molybdenum, iron ore and uranium.
DGR Global’s strategic focus is on securing provincial tenure positions that are prospective for commodities which attract globally exposed capital funds. Each project or exploration strategy is initially held as a separate subsidiary of the parent company.
DGR Global’s wider resource interests continue to outperform, shares up 20.83%
DGR Global (ASX: DGR) is a share gainer today with news its wider global resource interests continue to do well as the company prepares to float subsidiary Armour Energy.
The company rose 20.83% to A$0.14 in intra-day trade today on the back of a market update regarding its other resource interests.
Mt Isa Metals
Mt Isa Metals (ASX: MET), in which DGR holds a 30.6% interest, has seen a substantial increase in its share price following exploration success in defining high grade gold zones at its Nabanga gold project in Burkina Faso.
New intersections from the North Zone together with those recently reported from the Central Zone target confirm high grade gold mineralisation at Nabanga over a total 1.1 kilometre strike length.
Notable intersections from reverse circulation drilling include 5 metres at 6.81 grams per tonne (g/t) gold from 21 metres, including 2 metres at 11.25g/t from 23 metres; and 12 metres at 4.78g/t from 16 metres, including 3 metres at 16.02g/t from 24 metres.
Nabanga is the most advanced of Mt Isa Metals five main gold prospects in Burkina Faso.
Armour Energy
DGR is preparing to float its 50% owned subsidiary Armour Energy in April.
The company is in the process of appointing lead managers and expects to lodge its prospectus with ASIC in early to mid-March 2012.
Late last year Armour Energy reached a share placement and farm-in agreement with Lakes Oil (ASX: LKO) to subscribe to A$2.25 million in Lakes Oil shares and farm-in to highly prospective onshore Gippsland and Otway basin tenements.
Armour Energy purchased 900 million shares at $0.25 per share, providing the company with a 15% interest in Lakes Oil.
The DGR subsidiary will also have the right to earn up to a 51% interest and assume operatorship of the PEP169 tenement in the Otway Basin and PEP166 tenement within the onshore Gippsland Basin.
Armour Energy’s IPO is underwritten to $50 million.
Navaho Gold
DGR also holds a 29% interest in Navaho Gold (ASX: NVG), which today announced it is set to grow its Carlin-style gold exploration initiative in the United States, with potential to become a first mover in a new gold province.
The company has entered an agreement to form an alliance with private Utah-based Genesis Gold Corporation to explore for Carlin-style deposits in New Mexico.
Importantly, the alliance offers Navaho Gold a low cost entry into the region with a partner that has a wealth of experience in exploring for this type of mineralisation in the western U.S.
Navaho has also increased the prospectivity of its Utah Clipper Project in Nevada, intersecting shallow silver mineralisation above the potentially large gold target.
The first diamond drill hole at Utah Clipper is nearing its target zone, a large Carlin-style gold deposit in the Lower Plate rocks.
Significantly, the silver mineralisation intersected runs for almost the entire 298.2 metre long interval, with an average grade of 4.6g/t silver, based on a 0.5g/t silver cut-off grade.
Solomon Gold
Solomon Gold (AIM: SOLG), in which DGR holds an 11.7% interest, has acquired three new early stage exploration properties with low minimum spend requirements in the Solomon Islands.
The company bought Honiara Holdings, which owns the properties, for A$50,000. The acquisition also included one reconnaissance licence.
The company owns a portfolio of exploration assets in the Solomon Islands and in Australia.
At the Rannes gold and silver Project in Queensland, one of the more advanced project’s in the portfolio, a new Resource upgrade is expected within weeks as Solomon Gold continues to target 2 million ounces of gold equivalent.
The current Inferred Resource, which was upgraded by 20% in November last year, is 812,000 ounces of gold equivalent comprising 486,935 ounces of gold and just over 13 million ounces of silver.
Highlighting the potential of the Rannes Project is the very competitive discovery cost of A$6.70 per ounce versus an average of $60 per ounce in Australia.
At a conservative resource ounce valuation of A$70 per ounce, Rannes is worth $57 million. To put this into perspective, Solomon Gold currently has a market cap of around A$50 million.
IronRidge Resources
DGR has a 68.5% interest in IronRidge Resources, which has lodged two prospecting applications for areas prospective for hematite and magnetite iron ore in Gabon, Africa.
IronRidge currently holds exploration permits covering about 5,000 square kilometres in a new iron ore province in the northern Surat Basin.
The company is investigating the potential for an 8 million tonne per annum operation at the Cadarga Prospect which is emerging as the highest priority project with deposits of sediment hosted iron ore returning assays greater than 40% iron and low phosphorus already identified.
DGR Global also holds a 41% interest in AusNiCo (ASX: ANW).
