Perth, Australia -
Dynasty Metals Australia Limited (ASX:DMA) welcomes the latest joint announcement by Brockman Resources Limited (ASX:BRM) /
Atlas Iron Limited (ASX:AGO) / QR National (ASX:QRN) that three parties have entered into an Alliance Study Agreement to undertake 'a joint evaluation of a fully integrated mine, rail and port logistics solution in Western Australia's East Pilbara region.' (21 August 2012)
In its announcement on 26 April 2012, QR National stated that it 'was evaluating an independent multi-party railway to connect iron ore mines in the East Pilbara to Port Headland.' And further that 'under this proposal, the parties would work towards Atlas becoming a cornerstone user of the infrastructure. However the railway would be developed on the basis of other miners connecting and accessing the railway through staged development.'
Dynasty's Board views this important Alliance study agreement as a great leap forward in solving the regional infrastructure bottle-neck whilst potentially providing options for other mining operations in the region. The board looks forward to investigating the possibility of accessing this proposed rail network at the appropriate time along with other infrastructure solutions to deliver ores to port facilities.
The proposed independent rail corridor is likely to be less than 75kms from Dynasty's Spearhole Deposit (see figure 1), which could significantly reduce the capital expenditure costs for Dynasty's Spearhole project, allowing the project to be commenced at a smaller production module of between 1-2Mtpa then expanded to 10Mtpa at a later stage.
Dynasty has also identified other exploration targets which are close to the new rail corridor, a technical crew has been sent to conduct geophysical surveys over E52/2591 (figure 2), the survey is likely to be completed in early September and should provide further drilling target areas with potential for DSO grade iron ore. The E52/2591 is adjacent to BHP's Mt Newman project, the historical drillings nearby had encouraging high grade iron intersections including 76m @ 62% Fe.
E52/2591:
- Strategically located near BHP's Mt Newman mining operations
- Historical drilling directly east of the tenement has extensive high grade intercepts including 76m @ 62% Fe
- Shows strong magnetic features that are often associated with buried iron deposits
To view the complete Dynasty Metals announcement including Figures 1 and 2, please click the link below:
http://media.abnnewswire.net/media/en/docs/ASX-DMA-601140.pdf
About Dynasty Metals Australia Limited:
Dynasty Metals Australia Ltd (ASX:DMA) is an emerging Australian iron ore exploration company focused on developing its 100%-owned tenements at Prairie Downs in Western Australia's Pilbara region.
In March 2010, Dynasty announced initial JORC-Compliant Inferred Resources of 453 million tonnes of Detrital Channel Iron and 23.3 million tonnes of Marra Mamba Iron Formation.
The 2010 exploration programs are underway and are aimed at further testing and significantly expanding the current resources, as well drilling a large iron-rich basal conglomerate for the first time. The exploration target is more than 1 billion tonnes of iron.
During 2010, Dynasty plans to commence detailed commercial investigations that will cover preliminary mine planning, beneficiation process design, mining and processing costs, transport infrastructure, capital costs, environment and native title clearances, and government approvals. A pre-feasibility study is anticipated to commence in late 2010.
Contact:
Dynasty Metals Australia Limited
T: +61-8-9426-8999
F: +61-8-9426-8900
www.dynastymetals.com.au
