Dragon Energy's Rocklea project in the Pilbara region of Western Australia now offers potentially better cost efficiencies and has a straight road towards advanced mine planning and project development.

There is also a maiden Resource in the offing for the Nameless Project which is close to completion.

Over 84% of the Channel Iron Mineralization JORC Resources at Rocklea, or 78.94 million tonnes at 52.37% iron, has been moved into the Indicated category following the development of a new resource model based on data from reverse circulation drilling carried out from 2005 to 2009 and infill drilling from 2011 to 2012.

Mr Gang Xu MD of Dragon Energy said that "We are very pleased with the results of this new Resource model. Not only have we achieved our main objective by bringing the majority of the Resource to an Indicated level but we have also added over 30 million tonnes to our total iron ore Resources at a 50% iron cut off grade."

He added that "The results at the 45% cut-off grade are also extremely encouraging with only a slightly lower average iron grade, compared to the 50% cut off. It is likely that the project is viable at a 45% cut off and this gives us 117.06 million tonnes grading 51.65% iron, or a calcined iron content of 58.60%. Our maiden Resource for the Nameless Project is close to completion and when we combine that with our consolidated Rocklea project, we will have a large scale Resource to pursue our company objectives."

Further adding to the project's value is the addition of Rocklea iron ore project that Dragon had purchased from Murchison Metals' for AUD 3.2 million. This has served to increase the overall resource at the consolidated Rocklea project to 182.6 million tonnes at 52.7% Fe (59.5% caFe).

Source - Proactive Investors

(www.steelguru.com)