PART 2:
Blebby sulphides along the 50km long Money intrusion:
Blebby sulphide along the 50km long Money intrusion with chalcopyrite, pentlandite and pyrrhotite:
- DRE has also recently (June 2021) identified high-grade
Rare Earth Element (REE) outcropping ironstones at Mangaroon
- 12 prospects identified on DRE’s grounds which adjoin (to the south-west) HAS.ax’s grounds that host their Yangibana REE Project
- DRE’s Yin prospect is 2.5km+ long with rock chips assays of up to 11.2% TREO, including 3.6% NdPr (similar characteristics to HAS.ax’s Yangibana project)
- 11 more prospects to be inspected (results due in July 2021)
- DRE applied for the grounds to the west of HAS.ax’s REE project
- HAS.ax:
-- currently at $300M MC
-- in construction/development of Yangibana REE Project
-- with Capex of $500M
-- becoming Australia’s next REE producer
-- recently announced that their REE is the highest grade in the world
-- adjoins DRE’s REE prospects just identified (with more to come)
--- I wonder what a double-up of their project size is worth to them (ie. to buy DRE’s REE side)
DRE’s REE prospects & HAS.ax’s REE deposits next door location + rock chip grade comparisons between the two:
Projects (Illaara):- Gold, Iron Ore, Tantalum/Lithium, VMS
- 880km2 in size (whole greenstone belt)
- 75km of strike
- acquired from Newmont in June 2019 (due to change in priorities), plus subsequent deals for parts that Newmont didn’t own
- previously explored by international multi-billion dollar iron ore companies (ie. $15B MC Cleveland Cliffs) (until iron ore prices sunk)
- Metzke’s Corridor is the most advanced gold area of the project (12km-long gold corridor) (+ multiple other similar gold corridors at the project)
-- recent results and gold soil contours per below image
-- resource for Metzke’s due in the SEP 2021 quarter
-- from drilling done to date, it should contain a small, shallow & high-grade (~10g/t Au) deposit that can be monetised (30-40Koz @ ~10g/t Au)
- RMS.ax’s Marda Gold Mine is down the road (RMS.ax is also one of the biggest DRE.ax shareholders)
- next to Metzke’s Find there’s Black Oak, which looks like a large mineralised system (3km strike & open to the South - broad, low-grade results so far from first 14 shallow holes, with more drilling to come)
Illaara - Iron Ore potential:- MIN.ax’s 7 Iron Ore operations surround DRE.ax’s Illaara project which contains high-grade iron ore
-- MIN.ax wants to buy it and DRE.ax wants to sell it
-- just need to agree on the price - negotiations ongoing for a while; a blinking contest now
-- DRE recently reduced the royalty from Newmont to help with the MinRes/any other potential deal
-- MIN.ax have $1.1B+ in cash
-- MIN.ax is building a 270km long haul road, up the side of DRE’s Illaara to get to Mt Richardson
-- MIN.ax’s Mt Richardson is a high-grade, low phosphorus deposit (same as DRE’s Illaara Iron Ore, which MIN.ax need to blend out the rest of their ore)
-- DRE has stated that they will commercialise their Iron Ore (whether it’s with MIN or not)
-- proceeds would go into funding DRE’s other (gold, nickel, copper) exploration
-- DRE have also stated that they would potentially pay back to shareholders any/excess cash received from a sale (ie. capital return/dividend)
Illaara - Tantalum/Lithium potential:- early days but:
-- high-grade Tantalum rock chips
-- potentially a large & fertile system
-- critical metal & unsecure (mainly prod in Africa)
-- will likely build it up a bit more and sell it to fund other (gold/nickel/copper) exploration (like they’re doing with the Iron Ore)
Illaara - VMS potential:-- early days
-- no drilling yet
-- BHP poked around in the 1980’s for VMS
Fun Facts (DRE’s Massive Country-Scale Projects):- Kimberley: 2,660sqkm, bigger than 28 countries in the world
- Mangaroon: 4,500sqkm, bigger than 30 countries in the world
- Illaara: 880km/whole greenstone belt, bigger than 24 countries in the world
- DRE’s projects cover 0.1% of the Australian landmass (ie. for every 1,000km2 of Australia, 1km2 belongs to DRE’s projects (let me know if my maths doesn’t add up there!)
-- hence why they have/are finding anything and everything at the projects (Gold, Nickel, Copper, Iron Ore, Rare Earths, Tantalum/Lithium, Copper-Zinc-Lead-Silver):
Fun Facts (The Billions Connections):- RMS.ax: $1.3B ASX Gold Major - is one of biggest DRE holders & topping up their holding with each CR
- First Quantum Minerals: $20B Canadian Miner - one of biggest miners in the world and one of best performers in 2020 – they’re currently JV-ing into DRE’s Mangaroon project for 51% by spending $15M ($3M per year) (applies to base metals only, and only on parts of the total project area)
- SLR.ax: $1.5B MC - ASX gold producer which was started by DRE’s Management
- MIN.ax: $10B MC - Iron Ore deal being negotiated for sale of DRE’s IO (surrounded by MIN’s 7 IO operations)
- Newmont: $68B MC & the biggest gold miner in the world - DRE acquired their Illaara Project/whole greenstone belt from Newmont (project also owned by multi-billion dollar Iron Ore companies before Newmont (ie. $15B MC Cleveland Cliffs))
- IGO.ax: $6B MC - is watching DRE’s every move in the Kimberley and will have their eyes glued onto DRE's current drill program (especially the Ni-Cu-PGE) (IGO is the biggest and DRE 2
nd biggest landholder in the area, with DRE owning pretty much all of the ground that was off limits to exploration since 1978 due to Govt./Defence Reserve). IGO is also a Major shareholder and JV partner of another company that the DRE Chairman is the Chairman of
- OZL.ax: $7B MC - like IGO, will be watching the current Kimberley drilling campaign (especially the Cu-Au targets) - relationship already exists as DRE’s Management previously sold AVB.ax to OZL for $323M (takeover)
- CHN.ax ($2.5B MC), DEG.ax ($1.6B MC), SFR.ax ($1.2B MC), SIR.ax ($1.8B takeover), GOR.ax ($1.1B MC): companies that are DRE’s benchmark, definition of success, and what they’re aiming to achieve (ie. similar projects/targets, located in unloved/underexplored districts, junior drilling for a big discovery, etc):
- with some luck (which DRE’s Management have had a lot of in the past) from the drill bit shortly, we’ll see if DRE can make it into its own Billions
Chart (like everything else, looking good and breaking all previous levels, on massive volume):
Upcoming Newsflow:- 6 to 8 announcements to come out over the next 2.5 weeks (JUL), by which time the AUG schedule would’ve filled up similarly
- all current drilling (11 targets, including at least 4 potential company-makers) will be completed over the next 3 weeks
A Few Images of those Outcropping Walls of Copper & Gold (that Dean refers to in the pressos):
The End!
Cheers,
GB.
***************
.
(20min delay)