Dynasty Metals Australia Limited announced that since the successful conclusion of the recent placement by Patersons Securities, the Board of Directors has now approved Phase 1 of the 2010 Exploration Expenditure Program of approximately AUD 2.5 million for the Prairie Downs Project.
2010 Exploration Phase 1, Program;
The aim of the program is to advance the understanding of the iron mineralization present in the Prairie Downs tenements and to carry out beneficiation studies of the large detrital deposits in this area.
The program is designed to
1. Complete infill drilling of the 453 M tonne Spearhole Deposit
2. Define high grade Fe zones in Spearhole
3. Complete bulk testing of the Spearhole Deposit and undertake beneficiation tests
4. Evaluate the continuation of the Spearhole Deposit to the south and south east
5. Identify possible extensions to the Marra Mamba Formation and drill those targets
6. Explore for hidden Brockman Iron Formation which overlies the Marra Mamba Formation
7. Drill the Homestead iron rich basal conglomerate
The results of the Phase 1 program will be used to define the Phase 2 program. Work will also commence during Phase 1 on investigations into infrastructure options and the early preparations for environmental and native title clearances required to support any future project development.
Rationalisation of Non Core Tenements
To ensure the Company remains focused on its Pilbara iron ore projects, the Board has decided to transfer all its non iron tenements to the following three new wholly owned subsidiaries
1. Scorpion Resources Limited; Stanley Nabberu Tenements
2. Irwin Energy Limited; Irwin River Coal and Petroleum Exploration Licenses
3. Taurus Resources Limited; WA and NT uranium, Victorian gold projects.
The Board has been in advanced discussion with various brokers which have expressed interest in supporting the spin off of the above 3 subsidiaries. It is also the Board's intention to seek additional projects to be injected into the three subsidiaries and wherever possible and viable to advance each entity to public listing.
On completion of the tenement transfer and securing further tenements as may be appropriate, the Board intends to provide a priority offer and or in specie distribution of the shares in the subsidiaries to Dynasty shareholders at that time, so as to unlock value in these areas for the benefit of shareholders.
