General Discussion, page-283

"When Dean mentions commercialization of the central yilgarn assets im curious as to what are the possible forms this might take"

Dean has mentioned this at a lot of conference presentations, and I'm sure that most on here are aware of his views/comments, per below:


Iron Ore:

Central Yilgarn project is surrounded by Iron Ore producers/developers (ie. $11B+ MC MinRes).

There's plenty of Iron Ore at DRE's Illaara project (now part of Central Yilgarn project), which is high-grade with low impurities (previously owned/explored by big international iron ore players who left when the iron ore prices crashed (from memory)).

MinRes is after more high-grade, low impurity Iron Ore, to blend/for its operations that surround DRE.

MinRes & DRE started negotiations about a deal/commercialisation a while ago.

Since the start of the negotiations DRE has negotiated a reduction in the royalty on production at Illaara with the previous owner of the project (Newmont; world's biggest gold producer).

DRE has also recently drilled some holes at one of their Iron Ore targets at the Illaara project, for "proof of concept" (I'm guessing for MinRes/the negotiations with them and/or others in the area/other iron ore players).

DRE just acquired a lot of land, now part of the Central Yilgarn project, from AMD, which is land that Dean has previously worked on and knows a bit about; land that has plenty of Iron Ore on it too.

DRE have also hired Leah Dawson to manage the project, who has also previously worked on those grounds/projects.

Also, Gina Rinehart's Hancock recently took over the Mt Bevan Iron Ore project 20-30km's up the road.


Gold:

DRE is due to release (in August/September, per yesterday's announcement's upcoming newsflow section) a resource for its Metzke's Find gold deposit.

There's potential to commercialise this as well, with a goldie producer, and there's more than one in the area, including Ramelius, who is also one of DRE's biggest shareholders.

Metzke's deposit is shallow/from surface, and the resource should be small but high-grade.


Those are the two things that can potentially be commercialised in the short term.


Who knows what else they can/will find at Illaara (there's samples at the lab awaiting analysis for Gold, Iron Ore, Lithium, VMS), and who knows what's there at the new Central Yilgarn projects that were recently acquired (apart from the Iron Ore).


"what would a smallish company like DRE likely do with the dosh from that assuming its way in excess of whats needed for future exploration etc?"

Dean did mention (at, at least one conference presentation) that if they monetise an asset and they have excess cash that they would distribute it to shareholders.

Not sure how much they might get for the Iron Ore or the Gold, but the main/much bigger play at the moment is to drill-out the Rare Earths and see how much that'll potentially end up being worth...and then do the same at Orion & Friends in the Kimberley.



Cheers,

GB.