Dragon Energy has snapped up three West Australian iron ore projects from Polaris Metals as part of its iron ore and coal growth strategy.
Dragon will have 6 iron ore exploration projects consisting of 7 granted licenses and 3 applications in Western Australia totaling 958 square kilometers in size, and will deploy significant resources in a short time frame to fully test the potential of these projects. The projects comprise 7 tenements totaling 596 square kilometers in size and have sound potential to host large scale hematite and magnetite iron ore deposits.
The Pilbara Ashburton project is close to existing operating iron ore mines and has a “detrital iron target potential in the range 600 million tonnes to 1200 million tonnes.
The Midwest Milly Milly project has potential to host significant Jack Hills style high quality magnetite iron ore deposit. The project is also prospective for chromite mineralisation.
The Lee Steere Range project contains a 47 kilometer strike length of favorable iron rich lithology with up to 66% Fe rock chip samples being reported. Dragon’s exploration focus will be on significant hematite, goethite and magnetite iron ores.
The tenements are also prospective for calcrete hosted uranium mineralization.
The major acquisition terms for the three projects includes aggregate cash payment of AUD 450,000, acquiring 100% of Ashburton and 100% of Milly Milly, acquiring 75% of iron ore rights and 100% other mineral rights for Lee Steere, Dragon to sole fund the first AUD 1 million of iron ore exploration expenditure on Lee Steere and Polaris retains a royalty right of AUD 1 per tonne of iron ore mined, capped at AUD 10 million aggregate for all three projects.
Mr Jie Chen chairman of Dragon said the move wis an important strategic step for Dragon, its major shareholder the Shandong Taishan Sunlight Group.
The Shandong Group is a leading Chinese coal mining group. Shandong Group controls 1.5 billion tonnes of coal and 100 million tonnes of iron ore resources in China as well as engaging in steel making and power generation.
(Sourced from Proactive investor)
