Dynasty Metals Australia (ASX:DMA) is an iron ore explorer and developer with extensive (3600km2), wholly owned tenements at Prairie Downs in Western Australia's Pilbara region. The company also has a broad portfolio of exploration projects prospective for gold, uranium, coal, coal seam gas and other minerals in Western Australia, Northern Territory, Queensland and Victoria.
Dynasty Metals shares spike on iron resource indicated at Prairie Downs, WA
Emerging iron ore explorer Dynasty Metals (ASX: DMA) has announced an initial maiden 453 million tonne JORC Compliant Resource in the company’s Spearhole Detrital Channel Iron deposit at Prairie Downs in the Pilbara region of Western Australia.
It includes 129 million tonnes @ 30.5%Fe (equivalent to Calcined Fe “CaFe" of 33%) at a cut-off grade of 27% Fe.
Highlights also include 23.3Mt JORC Compliant Inferred Resource estimates of Marra Mamba Hematite Iron Deposit that confirm major iron formations extended across Prairie Downs.
Dynasty’s Executive Director Malcolm Carson said, “these are particularly encouraging early stage results. To define a minimum 129 million JORC Compliant resource within a total Inferred Resource envelope of 453 million tonnes; together with the Marra Mamba Inferred Resource, with a $1.2 million reconnaissance program represents a great achievement."
“Our plan for the current year is to expand our exploration program to better define the extent of the resources at Prairie Downs and to ascertain the commercial viability of the project."
"We will do this with infill drilling, bulk sampling and beneficiation test-work. We will also explore for extensions of the Detrital deposits, Tertiary channel iron deposits and hidden deposits of Marra Mamba and Brockman Iron Formation which we believe exist on our tenements,” Carson added.
“Dynasty is in advanced negotiations with several highly respected Chinese parties regarding financing and development support for the Prairie Downs project."
"The Company continues to review its infrastructure options with existing infrastructure owners and the possibility of participating in new infrastructure projects in conjunction with owners of stranded iron ore deposits in the vicinity of its project in the Pilbara. These negotiations are progressing well.”
The Mineral Resource estimates are based on 2009 first-pass exploration over less than 1% of Dynasty’s Prairie Downs tenements which cover ~3,600km.
Results confirm the exploration concept of very large tonnages of Detrital and Channel Iron deposits derived from Marra Mamba and Brockman Iron Formations in the ancient river channels that extend many kilometres south & south east of the area drilled to date.
Preliminary test-work show that the in-situ material can be upgraded to commercial grades (58.2% Fe & 9.1% SiO2) with potential for better grades.
Advanced negotiations are under way with various Chinese steel mills interested in funding exploration and development of Dynasty’s iron project and in providing technical and infrastructure support.
The Project is similar to, with the potential to match the scale and grade of Brockman Resource Limited’s (ASX: BRM) 17Mtpa mine and 1.6 billion tonne Marillana Detrital Project.
There are multiple infrastructure options, including cooperation with adjacent operators and explorers, encouraging recent developments with Pilbara 3rd party access.
Dynasty Metals shares rose 48% to 29 cents in trading today.
