Dynasty Metals Australia to focus on iron ore projects south of Mt Whaleback Friday, May 13, 2011 by John Phillips
Dynasty Metals Australia (ASX: DMA) company strategy will now focus primarily on the company's Pilbara iron ore tenements south of world's biggest open-cut iron ore mine, after agreeing a farm-out of non-core assets.
The farm-out with China Coal Geology Engineering Corporation (CCGEC) covers Dynasty's base metal tenements, other than the Irwin River coal seam gas tenements.
Dynasty will transfer the company�s non-core base metal tenements into a separate legal entity where CCGEC will invest $2 million for a 60% interest in the entity.
CCEG can increase this interest by 20% by investing a further $750,000 within a three year period, with the deal subject to legal and regulatory approvals.
This deal allows Dynasty to focus on the highly prospective Prairie Downs iron ore project, which is less than 100 kilometres south of BHP Billiton's (ASX: BHP) Mt Whaleback project.
The significance of Mt Whaleback is that the mine is the world's biggest open-cut iron ore mine, which last month was toured by Opposition Leader Tony Abbott.
Prairie Downs is located about 50 kilometres south from the town of Newman in Western Australia and about 400 kilometres from south-southeast of Port Hedland.
There is substantial infrastructure in the area including a gas pipeline running through the project, along with a major road, with the road connecting to Mt Whaleback, which has train infrastructure to Port Hedland.
Within Prairie Downs is the Spearhole Detrital Iron Deposit, with a JORC Inferred Resource of; 1.4 billion tonnes at 23.5% iron.
E.
DMA Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
