According to the RM Research, Dragon Energy has been flagged as a speculative buy with a price target of AUD 0.20. This is based on the company's consolidation of DSO iron ore resources and JORC resources that confirm the potential of its Scoping Study.
Dragon Energy remains on track with our projections following on from our initiating coverage earlier this year with total resources now standing at 263.6 million tonnes at 52.6% iron.
The Rocklea resource came in at 93.59 million tonne at 52.19% iron, the majority of which lies in the Indicated category.
JORC resources were further bolstered with the acquisition in July of Murchison Metals' Rocklea Iron Project which represents the southern extension of Dragon's Rocklea deposit and contains JORC Resources of 89Mt at 53.2% iron.
At Nameless, a maiden resource returned 81 million tonne at 52.39% iron. RM Research believes there is potential resource upside at both Nameless, where the deposit is open to the west, as well as the newly acquired Murchison Rocklea tenements.
Negotiations are continuing with various native title claimants in respect to Mining Lease applications at Rocklea and Nameless.
Environmental surveys and Hydrology studies have commenced and a mine waste study was completed at Rocklea. A metallurgical drill program is also in the design phase.
Source:
http://www.steelguru.com/raw_material_news/Update_on_Dragon_Energy_from_RM_Research/296587.html
