Dragon Energy makes new iron ore applications in Western Australia

Friday, November 20, 2009

China-linked Dragon Energy (ASX: DLE) has made an application for three Exploration Licences in the mid-west region of Western Australia.

The application areas are between 270km and 450km northwest of Perth and have a combined area of 463km2.

Dragon managing director Gang Xu said he considered each application area to be prospective for banded iron formation hosted iron ore mineralisation.

"They are well located being immediately adjacent to existing and emerging iron ore mines as well as historical and current gold and base metal mines," Mr Xu said.

"They are well placed to take advantage of developing infrastructure in the region."

He said all application areas have seen previous exploration for gold and base metals but there had been no evaluation of the iron ore potential.

In particular, E59/1639 contains some 20km of an arcuate magnetic feature, interpreted to be a BIF unit that has been reported by previous explorers to be up to 100m wide.

"These applications mark an important step for Dragon in securing a 100% interest in Australian tenements prospective for iron ore and gold mineralisation in an exciting and rapidly developing mineral province," Mr Xu said.

The listing of Perth-based Dragon on the Australian Securities Exchange in February 2009 was facilitated by a cornerstone investor, the China‐based Shandong Taishan Sunlight Group Company.

Shandong Group controls 1.5 billion tonnes of coal and 100 million tonnes of iron ore resources in China as well as engaging in steel making and power generation.

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