Page 1 of 8 ASX ANNOUNCEMENT/MEDIA RELEASE 29th September 2008
PRAIRIE DOWNS & WARRAMBOO POTENTIAL FOR SUBSTANTIAL IRON ORE DEPOSITS __________________________________________________________________ PILBARA - IRON ORE AND BASE METALS PROJECTS
Following desk top studies and research, Dynasty recently completed a field reconnaissance on its Prairie Downs and Warramboo tenements in Western Australia and obtained results from chip samples which confirmed the potential for substantial deposits of iron ore. Results of up to 45.6% Fe1 were returned from a Potential CHANNEL IRON DEPOSITS at Warramboo and up to 62.6% Fe was returned from a conglomerate at Prarie Downs. The purpose of the expedition is consistent with Dynasty’s aim to determine the potential for substantial iron ore deposits in its Pilbara tenements. The field work was successful in identifying substantial iron ore targets which are worthy of further detailed follow-up exploration. WARRAMBOO Location The Warramboo tenements cover an area of 159.5km2 and are located in the Pilbara on Red Hill station ~100km east of the Western Australian coastal township of Onslow, 50km south of the rail head at Robe River and 200km to the west-north-west the township of Paraburdoo, see Figure 1. Figure 1 - Location of Iron Ore Projects 1 Fe = iron Page 2 of 8 Geology The Geology at Warramboo is dominated by Proterozoic arenites, shales and siltstones of the Ashburton formation, with valleys covered in recent alluvium. In the south of the tenements, sandstones and conglomerates of the Mount Minnie Group, strongly lateritised in parts, are present. Tertiary pisolite and conglomerate deposits within paleochannels are also present within the area. These deposits are referred to as “Channel Iron Deposits”. Dynasty’s mineral exploration targets are the Channel Iron Deposit’s which are currently mined at Rio Tinto’s Robe River, see Figure 1 approximately 60km from Warramboo and which are present on adjacent tenements held by Mineralogy Limited. Copper mineralisation to the south of the area appears to be related to NNW shears within the Ashburton Formation sediments. Figure 2 - Geology and Tenement Location Warramboo Exploration and Project Summary The primary target on the Warramboo tenements is iron ore concentrated in paleochannels comprising Tertiary Pisolite2, referred to as Channel Iron Deposits. 2 A pisolite is a sedimentary rock formed from pisoliths which are concretions spherical in shape, and comprise concentric layers reaching 5-8 mm in diameter. The name derives from the Hellenic word for pea. Page 3 of 8 Base metals mineralisation (copper, lead and zinc) associated with shear zones is a secondary target. Previous exploration within the Dynasty Tenements consisted of regional geophysics and geological mapping. Surface exploration by CRA over an area of Tertiary pisolitic conglomerate covered by Dynasty tenements, returned several results in the 50-60% Fe range which shows good potential for Channel Iron Deposits. Dynasty also collected several rock chip samples of the Channel Iron Deposits on the western edge of E 08/1620 South (see Figure 2) with the results presented in Table 1. The Strongest result was 45.6% Fe from this outcrop Table 1 - Selected Rock-chip results Warramboo Downs Sample Locality Description Al2O3 Fe P S SiO2 611 Warramboo - North of Mineralogy CID Ironstone, Ashbuton Formation siltstones. 6.69 37.8 0.642 0.051 25.8 612 Warramboo South Goethite Rich Pisolite conglomerate 2.41 31.2 0.022 0.012 44.8 613 Warramboo South Tertiary Pisolitic conglomerate CID 3.73 45.6 0.032 0.067 19.1 614 Warramboo South Tertiary Pisolitic conglomerate CID 2.87 36.6 0.03 0.044 35 615 Warramboo South Tertiary Pisolitic conglomerate CID 1.71 35.3 0.035 0.044 38.9 Airborne radiometrics indicates there may be extensions of the Channel Iron Deposits under cover and with a potential length within the Dynasty tenements of 3km and width of around 800m, see Figure 3. Without drilling it is not possible to determine the depth (or thickness) of any Channel Iron Deposits. However, typically these deposits in the Pilbara range in thickness from 5m to 50m. Figure 3 – Photograph Warramboo Sub-crop Page 4 of 8 Future Exploration Future programs will consist of gravity surveys, ground radiometrics and mapping, followed by targeted drilling to determine the length, depth and grade of potential Channel Iron Deposits in the paleochannels. PRAIRIE DOWNS Location The Prairie Downs tenements cover an area of ~1390km2 located ~30km west of the rail head at Mt Newman (see Figure 1). Geology The geology of the area consists of the complex Hamersley formation which contains Brockman and Marra Mamba Iron Formations, see Figure 4 as well as an older unnamed iron formation. Brockman and Marra Mamba Iron Formations are mined at Mt Newman, Mt Whaleback, Mt Tom Price, Brockmans and other mines Figure 4 - Typical, Hamersley Basin Stratigraphy Page 5 of 8 The Prairie Downs Fault cuts the tenement in a north westerly direction and separates the Hamersley formation from Bangemall Basin sediments, see Figure 5. These sediments have a coarse basal conglomerate consisting mainly of clasts of Hamersley iron formation rocks, or their equivalent. Iron, gold and copper mineralisation is present in the region. Figure 5 – Geology and Prairie Downs Tenements Exploration and Project Summary Dynasty’s priority target on Prairie Downs is a commercially viable deposit of Brockman and/or Marra Mamba Iron Formation. A secondary target is paleochannel iron deposits and a lower priority target is gold, base metals (copper, silver, lead and zinc) and uranium mineralisation. Previous exploration within the Dynasty Tenements included some work on the Hamersley Iron formation in the north as well as regional surveys for gold and base metals in the south. Dynasty has recently completed a reconnaissance trip where several rock chip samples from three areas were taken with the results presented in Table 2. Table 2 - Selected Rock-chip results Prairie Downs Sample Locality Description Al2O3 Fe P S SiO2 617 North East Prarie Downs Banded Iron Formation with some Bedded Iron Formation, MGT, Haem and Silica 0.30 42.9 0.077 0.025 35.7 618 Central Prarie Downs Conglomerate with Hamersley Formation clasts of BIF and Chert within a Haematite/silica matrix 0.38 48.5 0.060 0.018 29.9 619 Central Prarie Conglomerate as above, more Cherty 0.45 36.9 0.034 0.026 46.5 Page 6 of 8 Downs 620 Central Prarie Downs Conglomerate, dominated by Iron Formation clasts and strongly Haematitic matrix 1.84 62.6 0.031 0.010 7.8 622 Central Prarie Downs Conglomerate, around 50% Chert, 50% BIF clasts 0.20 29.8 0.064 0.007 56.5 The Dynasty tenements cover the Brockman and Marra Mamba formations and an un-named iron formation. In the north east of the tenement, an enriched iron outcrop in which siliceous layers of the original banded iron formation had been partially replaced by haematite/martite, was examined and sampled, see results Table 2. The Geology map shows the iron formation forming a large syncline with the central part of the syncline located to the north of the DMA tenement. The magnetics, see Figure 6, shows that a substantial portion of the iron formation may cross into the Dynasty’s tenements. Figure 6 - North East Prarie Downs Project, Aeromagnetics Field observations in the central part of the project of the basal conglomerate of the Prarie Downs Formation, within the Bangemall Basin, shows it to contain zones of high Iron formation content with large clasts of Hamersley Iron Formation or equivalent within a ferruginous (haematitic) matrix. Results shown in Table 2 are of this conglomerate. The results of up to 62.6% Fe with low contaminants are highly encouraging. The variation of the clast content and the silica content in the haematite matrix are responsible for the variation in Fe content. Higher in the stratigraphy the chert clast content is significantly higher hence the lower Fe response. The higher grade outcrops may be related to structural controls or a particular horizon and further work is needed to clarify this. Page 7 of 8 Figure 7 – Outcrop Tertiary Pisolite – Prairie Downs This formation is mapped to have a large areal extent with dimensions of several kilometres and a depth and thickness of the higher grade material as yet unknown. Based on the observations to date, this basal conglomerate has the potential to contain a substantial iron deposit. East of Dynasty’s Prairie Downs’ tenements there is a silver-lead-zinc deposit owned by Prairie Downs Metals Limited which has reported it to contain 4.7 million tonnes at 6.3% zinc, 18g/t silver and 1.8% lead. From limited published geological data on the project, it appears this mineralisation is partly controlled by the Prairie Downs Fault which cuts through the Dynasty tenements and represents a target for further investigation. Copper reported on a major north east structure in the south of the tenement may be part of a larger system in a dolomitic siltstone unit which could represent a host for more significant mineralisation. Samples from this copper mineralisation returned 29.1% copper and 20.9g/t silver. The region could also contain significant Uranium mineralisation in calcrete or as a paleochannel deposit with uranium sourced from the granites to the east. Page 8 of 8 Future Exploration Results from the recent reconnaissance trip will be evaluated and a ground magnetic survey in the north will be completed. Targets for high grade Bedded Iron Formation will be identified and drilled. The Iron rich conglomerate will be mapped and sampled and if encouraging further work such as ground magnetics and drilling will be completed. Prospecting of the copper occurrences will be followed by detailed mapping and soil sampling to identify drill targets. By order of the Board Malcolm Carson Technical Director For further information please contact either Messrs: Malcolm Carson (Technical Director) on 0417692849 Lewis Tay (Executive Director) on 0433166818 Richard Oh (Chairman) on 0411697249 Qualifying statement Malcolm Carson has compiled the information in this report from information supplied by Dynasty Metals Limited. Malcolm Carson has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results. Mr Carson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
DMA Price at posting:
15.0¢ Sentiment: None Disclosure: Not Held
