Dragon Energy has established an exploration target of 140 to 190 million tonnes at a grade of 48 to 52% iron at the Nameless tenement in central Pilbara, Western Australia.
Dragon has undertaken 2D and 3D modelling of the tenement. Channel Iron Deposit (CID) mineralization has been identified within a 17km-long channel, of which 13km has previously been RC drill tested by AusQuest and Rio Tinto on wide traverse spacings, providing a high level of confidence in the forthcoming drilling program.
An exploration target of the CID mineralization of 120 to 160 million tonnes at a grade of 48 to 50% has been estimated. In the southeast of the tenement Marra Mamba Iron Formation has also been intersected in RC drillholes. An exploration target of 20 to 30 million tonnes of this mineralization at 49 to 52% iron has been estimated.
Dragon will now proceed with a staged drilling campaign to infill previous drilling in order to define a JORC resource. This drilling program is fully funded from cash reserves.
Nameless is expected to provide a resource that will complement Dragon's Rocklea tenement which lies 24km to the southwest and which has an inferred JORC resource of 63.1 million tonnes @ 53.4% iron.
Dragon Energy's admission to the official list of ASX in February 2009 was facilitated by cornerstone investor, the China-based Shandong Taishan Sunlight Group Company, which 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.