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LOT - Lotus Resources

springhill

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DLE hold a suite of IO tenements in the Pilbara and MidWest regions of WA.

FPO shares - 206m
Cash - $10m (less $3.2m for Rocklea)

There have also been board changes last month.
Dragon Energy Ltd (ASX: DLE) hereby advises that Mr Qingyong Guo and Mr
Anthony Ho have resigned as directors of the Company. Ms Karen Logan has
resigned as the Company Secretary and Mr Ho has assumed this role.

ACQUISITION OF MURCHISON METALS LTD’S ROCKLEA IRON PROJECT
Highlights
• Dragon Energy Ltd to acquire Murchison’s Rocklea iron ore project including the southern extension of the Rocklea Deposit Channel Iron Mineralisation for a cash consideration of $3.2m.
• Dragon’s Rocklea Mineral Resource to substantially increase from 62.7Mt @ 53.41% Fe (60.39% caFe) to 151.7Mt @ 53.3% Fe (60.1% caFe).
• Consolidation of the Rocklea assets will provide significant cost efficiencies and substantially greater ability to pursue the development of the Rocklea Project.

Pilbara Iron Project- development of a DSO operation
Following the decision to pursue rapid development of the Pilbara Iron Project a number of studies and negotiations have been completed or are in the planning phase:
Completed
Scoping Study- conducted by GHD Limited on Dragon’s Pilbara Iron Project (Rocklea and Nameless projects) was completed December 2011. It assessed the potential viability of the Project and identified immediate priorities to advance the Project, and also assessed infrastructure and transport solutions. The Scoping Study highlighted the relevant environmental and approval issues associated with the development of the Project. It concluded that, subject to the identification and establishment of a suitable port operation, the Project may commence production through road transportation as early as the end of 2013.
Environmental Studies- a Vertebrate, SRE and Flora surveys have been completed.
Detailed resource drilling- completed at Rocklea and Nameless, in January and February 2012 respectively
Ongoing and Planned
Environmental Studies- a Mine Waste study has been initiated. A Subterranean survey has been planned
for the September quarter. A soil characterisation study will follow geotechnical drilling.
Water- a surface water study has been initiated. A hydrogeological drilling programme will be submitted to the DMP for approval in the following quarter.
Resource Estimation- a revised resource calculation of Rocklea, and a maiden resource calculation for Nameless project has been initiated.
Mining Lease Application- heritage negotiations initiated during the quarter.
Port- securing approvals for an export port suited to road transportation, while awaiting access to Anketell Port.
Finance- identifying and securing financial resources for the projects development.



Lee Steere Project is located some 200km NE of Wiluna, in the Earaheedy Basin of the Midwest.
Previous exploration activities in the 1970s identified enriched hematite mineralisation of Banded Iron Formations and Superior-type iron within the Frere Formation; rock chips of up to 66.1% Fe were reported. The project contains 48km strike of the prospective Frere Formation, as identified from magnetics and outcrop. Dragon’s exploration focus has been on supergene enriched hematite/goethite and outcropping manganese mineralisation.
A drilling programme has been designed primarily to test an identified stratabound manganese unit adjacent to Superior-type iron mineralisation. New native title access agreements are in the negotiation process and require a resolution before heritage surveys can be undertaken, following which the Company will apply to the DMP for approvals for drilling.

Mt Gibson Project lies 80km NE of Wubin, 7-32km south and east of the Extension Hill Hematite/Magnetite Project, and partly hosts the Mt Gibson Gold Operation. The project is situated in the Midwest Region of the Yilgarn Craton. E59/1686 incorporates a couple of open pits from the Mount Gibson Gold Operation (870,000oz
mined), within the southern Retaliation Belt. Regional magnetics indicates that similar geological
and structural features hosting gold mineralisation extend within E59/1686 and E59/1637, together with magnetic (BIF/ultramafic) units. A low-level surface geochemistry sampling programme has been
designed to test various structural and geological targets. No activity this quarter.
A total of 25 stream sediment samples were taken from E59/1638 during the quarter, focussing on the southern Ninghan Belt greenstones. 33 broad spaced soil samples were taken from E59/1687.
Assay results are still outstanding.


Carters Well Project is located 30km south of Mt Magnet, adjacent to the Great Northern Highway, in the Yilgarn Craton of the Midwest.
A total of 4 anomalous zones, including Au-Ag, Ce-Pb, Pb-Zn-Cu, Pb-Zn, were identified from MMI surface sampling in the previous quarter. The most notable is a 3.5km, NE striking gold and coincident silver anomaly to the southeast of the project area. The Ce-Pb anomaly may relate to felsic volcanic lithology contacts. In the Mt Magnet district potential gold pathfinder elements also includes Cu and Zn (Parkinson Pit) and Pb (Stellar & Quasar Deposits).
No exploration activities this quarter.

Ashburton Project is located in the Ashburton Basin, and is 10 to 40km from rail and other infrastructure associated with the Paraburdoo operations of Rio Tinto Iron Ore. Approximately 50% of the project area has a Cainozoic cover which potentially conceals CID within the braided drainages of Turee and Seven Mile Creeks, which drain the ranges of the Brockman Iron Formation near Paraburdoo. Base metals and gold provide alternative exploration targets. Exploration licences E08/2209 and E08/2210 were granted during the quarter.
No exploration activities this quarter.

Milly Milly Project is located 196km west of Meekatharra, and 58km east of the Jack Hills iron operation in the northern Yilgarn Craton. The project has the potential to host Jack Hills style, high quality magnetite iron ore deposits. BMR regional magnetic surveys indicate favourable host rocks of 42km strike within the tenement. GSWA mapping indicates 26km strike of BIF (quartz-magnetite) outcrop. Rock chip sampling returned Fe grades of up to 44% Fe. A chromite rich magnetite layer with an interpreted strike length of 1.6km provides an alternative exploration target.
No exploration activities undertaken as the tenement is currently progressing through the application process.

Yamarna Project is located 120km NE of Laverton, within the Goldfields-Esperance Region. The project is situated between two greenstone belts; the Cosmo-Newberry Greenstone belt to the west and the Yamarna Greenstone belt to the east. Gold mineralisation identified to the east is hosted by laminated quartz-mica-amphibole schist units- altered and sheared mafic volcanics and sediments. Dragon’s project lies 5km to the south of Platina Resources & Global Nickel’s Mt Venn Cu-Ni-PGE Prospect. Regional magnetics indicate that the greenstone succession at Mt Venn is also present on E38/2665.
The licence is in application, consequently no exploration activity this quarter.


Meekatharra Project is located 13km SE of Meekatharra, within the Midwest Region of the Yilgarn Craton.
The project lies in the Archaean Meekatharra greenstone belt, a regional N-NE trending synclinal structure. Gold was discovered in the area in the 1890s, with mineralisation generally structurally hosted and associated with quartz veining. Arsenic anomalies have been found to be associated with gold mineralisation (eg. Jones Prospect).
Limited exploration activities in the project area identified linear northerly trending arsenic anomalies with coincident weakly anomalous gold mineralisation to the north, and gold anomalies on lithological contacts with strongly anomalous arsenic to the south.
The licence is in application, consequently no exploration activity this quarter.

Corporate Development
Tim Williams joined the company as Chief Operating Officer and Executive Director. Discussions with a number of Chinese parties regarding different modes of cooperation were continued during this quarter. These discussions are still preliminary and are ongoing, but the interests shown by these parties continue to be encouraging.
The Company remains focused on the objective of early development of the Pilbara Iron Project and realisation of shareholder values.


Most information was taken from March quarterly, see upcoming June quarterly for updated information.
 

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springhill

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Re: DLE - Dragon Energy

RESOURCE UPDATE FOR DRAGON’S ROCKLEA DEPOSIT

• Dragon has completed a new resource model for its Rocklea Project with over 84% of the JORC Resource now being categorised as “Indicated”.

• Dragon’s Rocklea Project Channel Iron Mineralisation Resources increased by over 30Mt to 93.59Mt @ 52.19% Fe (59.16% caFe) with a 50% Fe cut-off grade, including 26.57Mt @ 54.12% Fe (61.06% caFe) with a 53% cut-off grade.

• Resource model also indicates a good average grade at a lower 45% cut-off grade with a total of 117.06Mt @ 51.65% Fe (58.60% caFe).

• When combined with the acquisition of Murchison’s Rocklea project, Dragon will have 182.6Mt @ 52.7% Fe (59.5% caFe) for its consolidated Rocklea project.

• Increased resource base expected to offer significant cost efficiencies and substantially greater ability to pursue the development of the Rocklea Project.
 

springhill

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Re: DLE - Dragon Energy

NAMELESS PROJECT MAIDEN RESOURCE

• A maiden JORC Inferred Resource of the Nameless Project 81Mt @ 52.39% Fe (57.08% caFe) with a 50% Fe cut-off.
• Possibility of substantially larger Nameless resource being economically viable at a lower grade cut-off of 45% Fe with 159Mt @ 49.43% Fe (53.85% caFe).
• Pilbara Iron Project (Nameless and Rocklea Deposits) total Mineral Resource increased to 263.6Mt @ 52.6% Fe (58.8% caFe) at a 50% Fe cut-off.
 

System

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On December 15th, 2016, Dragon Energy Limited (DLE) changed its name and ASX code to Riva Resources Limited (RIR).
 

greggles

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Riva Resources announced today that they have executed a binding agreement to acquire 100% of the Hylea cobalt-nickel-scandium-platinum project in central NSW. However, the share price plunged after the announcement due to the terms of the deal. To fund the purchase price of $8 million the company will pay $4 million in cash and issue 1,000,000,000 (yes, one billion) shares at $0.004 cents per share.

The company will fund the $4 million upfront payment via a fully underwritten capital raising, comprising:

(a) a placement of 450,000,000 shares at an issue price of $0.004 per share to raise $1.8 million; and
(b) a pro-rata entitlement issue at a ratio of 3 shares for every 4 shares held at an issue price of $0.004 per share to raise approximately $2.2 million.

So there will be 1,450,000,00 more shares on the Riva Resources register after the acquisition. This news did not impress the market and the share price plunged 52.94% to 0.008 today. Hardly unexpected considering the further selling that will inevitably commence after the shares are issued.
 

PZ99

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Having that many shares and at this price sounds like a good reason for a consolidation once the dust settles ?
 

System

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On March 26th, 2018, Riva Resources Limited (RIR) changed its name and ASX code to Hylea Metals Limited (HCO).
 
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HCO popped up in the Risers today … Recent good drilling results on newly acquired project but only a Mill+ in the bank ……

I like the prospects but I suspect a cap raise will be needed to progress the project ….. Watch and wait at the moment.
 

greggles

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HCO has announced the acquisition of a 65% interest in the Kayelekera Uranium Project in northern Malaw from Paladin Energy Limited. The remaining 35% is held by HCO's joint venture partner Chichewa (20%) and the Government of Malawi (15%). HCO will have an option to acquire a further 20% interest in Kayelekera from Chichewa.

Kayelekera hosts a high grade resource with an existing open pit mine and demonstrated excellent metallurgical recoveries (87.5%) having historically produced over 10.9MIb of uranium between 2009 and 2014. Significant infrastructure is already in place including a 3Mlb per annum resin in pulp extraction plant.

Consideration for the project is:

1. Initial Consideration of$1.8M worth of Hylea ordinary shares
2. Deferred Consideration of $3M worth of Hylea ordinary shares to be issued on the 3rd anniversary of completion
3. Royalty of 3.5% of gross returns at the Kayelekera mine up to a maximum of $5M; and
4. Environmental Bond – Replacement of the environmental of US$10M to be paid over three years.

HCO up a whopping 430.8% to 6.9c today following the announcement. This deal could be a new lease on life for the company. Time will tell of course.
 

kennas

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HCO has announced the acquisition of a 65% interest in the Kayelekera Uranium Project in northern Malaw from Paladin Energy Limited.

HCO up a whopping 430.8% to 6.9c today following the announcement. This deal could be a new lease on life for the company. Time will tell of course.
Nice jump! :woot:

Buying something that's under care and maintenance doesn't seem like the required impetus for that. Maybe it becomes economical, but why would Paladin sell it if that was the case? Bit weird really.

Hasn't Paladin taken a tumble the past 10 years? Ouch. All part of that U bubble I suppose.
 

System

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On August 29th, 2019, Hylea Metals Limited (HCO) changed its name and ASX code to Lotus Resources Limited (LOT).
 

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