DYNASTY METALS AUSTRALIA LIMITED - ASX: DMA

The data on Australian Shares.com is intended as a guide only and is compiled from information in the public domain. Data on this website should not be used to make an investment or trading decision.

Description

Dynasty Metals (ASX Code: DMA) is implementing its strategic plan to rapidly emerge as an iron ore producer in the Pilbara region of Western Australia. Dynasty's flagship Prairie Downs Iron Project is located southwest of Mt Newman. On less than 2% of its tenement holding, Dynasty has identified a 1.4 billion tonne detrital ironstone deposit and a 23 million tonne hematite deposit.

The economic potential of detrital ironstone deposits (such as owned by Dynasty and Brockman Iron) is becoming more widely recognised - Dynasty’s project is strategically located, see map below. The potential development of this deposit is likely to benefit from a number of economic advantages and its strategic location in the Pilbara.

Prairie Downs Iron Project (WA)

Dynasty's flagship Prairie Downs Iron Project is located in Western Australia’s prolific iron-producing Pilbara region. JORC-Compliant iron resources totaling 1.4 billion tonnes have been estimated for the Spearhole Detrital Iron Deposit, which include 932 million tonnes at 27.4% Fe at a cut-off grade of 20% Fe. Dynasty is evaluating three types of iron mineralisation at Prairie Downs:

* Detrital Channel Iron deposits which are present in very large tonnages near surface and can be upgraded to marketable grades through simple physical processing;
* Marra Mamba Iron deposits with Direct Shipping Ore (“DSO”) grades of iron; and
* Iron-rich basal conglomerate deposits.

Only about 2% of Dynasty's extensive (~4000km2), 100%-owned tenements at Prairie Downs have been drilled to date. Exploration is focussed on a number of targets within the tenements with the main area drilled to date being at the Spearhole Prospect. Dynasty’s flagship Prairie Downs Iron Project is located southwest of the township of Mt Newman.

Hyden Gold Project (WA)

This project covers an area surrounding the Bounty and Forrestania Gold Mines and in the vicinity of Flying Fox and Cosmic Boy Nickel mines. The tenements (E74/333, E77/1248, E77/1326) contain historical gold workings and have a significant soil anomaly from previous work in the area.

An area of E77/1248 covers a zone of local deviation in the regional strike orientation of the greenstone belt, consequently this area may be associated with a heterogeneous stress field and the subsequent dilation & compressional zones during the time of gold mineralisation. This area has an extensive plus 10ppb Au anomaly in a survey completed by WMC. The proximity of E77/1326 & E74/333 to the deviation suggests potential for deformation and mineralisation of these areas.

Stanley Nabberu

The Stanley-Nabberu uraniumProject is made up of 12 licences the main licence E69/2294, E69/2295, E69/2296, E69/2297, E69/2298, E69/2299, E69/2265, E69/2266, E69/2267, E69/2268, E69/2269, E69/2270, E69/2300. The area is under explored and in some cases unexplored and there is gold and base metal opportunities. This project contains highly prospective ground in the vicinity of high anomalous grounds based on aeromagnetic and radiometrics data. It represents a good opportunity for a grassroots discovery.

The main target for mineralisation is paleochannel uranium. This is a style of rollfront uranium deposit where the Uranium in as area is leached and transported in oxidized meteoric waters and deposited in paleochannels in suitable traps where there is either reducing organic material or where the fluid becomes reductive. The main source for uranium is “hot” granite containing elevated Uranium and Thorium, present in these areas. There are alluvial drainage channels and calcrete present in the Stanley-Nabberu area . Calcrete is a calcium and magnesium carbonate-rich rock that forms as a chemical precipitate in sediments deposited in drainage channels and playa lakes. Little or no recent exploration for this type of deposit has been identified in the Stanley–Nabberu area. Calcrete hosted uranium deposits in Western Australia are Yeelirrie and Lake way containing 35Mt @ 0.15% U3O8 and 8.52 Mt @ 0.054% U3O8, respectively.

The gold potential of the area through possible inliers of Archaean associated with the Archaean intrusive in the area. There is also potential for orogenic gold deposits within the sediments and metamorphics of the area.

There is potential in the area for sediment hosted Zn-Pb-Ag mineralisation. Parts of the Bangemal and Nabberu Basin have developed basins of sufficient thickness to produce brines that could form sizable deposits. Targeting of areas with thick sedimentary packages with changes in formation thickness across basin forming faults. Examination of potential for Cu-Au deposits of the recently discovered Degrussa type will also be examined. Ni-Cu_PGE deposits may be associated with ultramafics in the area also.

The Frere formation is a BIF which can contain 50-60% iron in enriched zones. The magnetics show the strong continuation of this formation through tenement E69/2266. This would be the most prospective zone for Iron ore within the tenements. Potential for other BIF within the Frere Formation elsewhere should also be examined.

Hector Bore

This large landholding covers geological environments with potential Primary Uranium Deposits and Surficial Uranium in Calcrete sourced from the Proterozoic Granites of the Gascoyne province. The tenements surround known Uranium mineralisation at Hector Bore. There is also some gold and base metal potential within the area. The project area covers an area of 637.7km2 (E09/1339 granted, E09/1710 and E09/1711 pending application).

Mt. Philips

The two tenements, E09/1337 & E09/1338, currently owned by Dynasty Metals are located in the Gascoyne region, WA. This project covers geological environments. With potential for Primary Uranium Deposits and Surficial Uranium in Calcrete sourced from the Proterozoic Granites of the Gascoyne province.

Irwin River

Dynasty has secured five exploration licences covering 762km2 in the northern Perth basin, east of Dongara and Geraldton. Dynasty is exploring these areas for coal and coal seam methane. The tenements are well located for development with respect to major iron ore resource development projects, existing gas reticulation infrastructure, existing and proposed ports and regional infrastructure. Oil and gas exploration in this region of the Perth Basin has been undertaken over the past 40 years and has resulted in a number crude oil and gas discoveries in various geological units ranging from Late Permian to Late Jurassic in age.

Exploration has resulted in the development of a number of natural gas production wells which supply natural gas to Perth domestic and industrial customers. Coal exploration in the region has also been ongoing over the past 100 years and has delineated a number of coal seams which historically were not deemed commercially viable.

Mine For

iron ore, gold, uranium, lead, zinc, silver, copper

Location of operation(s)

Western Australia, Northern Territory, Queensland, Victoria

Address

Se 2, Level M, 35-37 Havelock St
WEST PERTH, WA , AUSTRALIA

Phone

(61 8) 9322 2700

Email

Website

http://www.dynastymetals.com.au/

Last Updated

5/5/2011