From nearly 5 years ago... what looked so promising.
Dynasty Metals (ASX: DMA) has reported a 1.4 billion tonne JORC Compliant Resource including 932 million tonnes at 27.4% Fe at a cut-off grade of 20% Fe for its Spearhole Detrital Channel Iron deposit at Prairie Downs in the Pilbara region of Western Australia.
Importantly, the Spearhole iron deposits occur at or near surface, with consistent grades and thicknesses that are tending to improve as extensions of the deposit are discovered to the southeast.
The Inferred Resource estimate represents a 300% increase in resources of iron-rich gravels. Preliminary bulk-sample test-work indicates good potential to produce export grade iron ore with best results of 61% Fe and low in impurities.
Iron mineralisation has been extended by the 2010 drilling by 4 km to the southeast, as well as increasing both grade and tonnage of the resource.
Only about 1% of Dynasty’s Prairie Downs tenements which cover ~4,000km2 has been tested to date.
With a financially strong Chinese steel partner in steel maker Hebei Xinghua, the prospects of forging a large scale mine development (>15Mtpa) with the potential to produce DSO iron ore at a low cost and high profitability appear sound.
The company will move to Pre-Feasibility Study stage with the project with the commercial and technical benefits arising from the relationship with Hebei Xinghua.
Test-work has demonstrated that the Spearhole Detrital Iron Deposit can readily be separated from the majority of the waste material at a very low cost of less than $1.00/tonne.
The substantial reduction in volume for a low cost, will increase head grade to the processing plant and reduce the overall processing and transport costs, as well as enable a DSO commercial grade of iron, silica and alumina to be achieved.
The resource increase is a result of the 2010 drilling programs successfully extending the resources approximately 4 km to the southeast, over an additional area of 11.5 km2.
Phosphorous is inherently low in the deposit and future beneficiation test-work will focus on applying various processing techniques to enhance and optimise grades in the remaining fractions to establish an optimum blend with the high grade fraction against an optimum product yield.
DMA Price at posting:
1.0¢ Sentiment: Hold Disclosure: Held
