Dragon Energy (ASX: DLE) has signed a key Native Title Mining Agreement with the Yinhawangka Part A claimant group paving the way for a Mining Lease to be granted for its Rocklea Central and North deposits within its Pilbara Iron Project.
The agreement provides the Yinhawangka's consent to all potential development of an iron ore mine at these deposits.
Rocklea Central and North deposits have a combined mineral resource of 93.60 million tonnes at 52.19% iron.
Further Mining Leases can also be added to the Agreement within the area of the Dragon's existing Rocklea Project tenements including Dragon's Rocklea South deposit.
The deposit has an existing mineral resource of 89 million tonnes at 53.2% iron.
Dragon Energy's managing director, Gang Xu, said that the parties had developed an excellent working relationship and looked forward to this continuing with the development of Pilbara Iron Project.
"Our negotiations with the Yinhawangka People have been based upon a strong mutual respect and have focussed on achieving outcomes that will benefit both parties.
"We look forward to working with the group to develop our Pilbara Iron Project and at the same time provide opportunities to the Yinhawangka community and preserve their heritage and customs."
Yinhawangka representative Roma Butcher said, "It was a pleasure doing business with Dragon Energy. Dragon's General Manager Gang Xu was so easy to talk to and clearly has a huge respect for Yinhawangka People."
Dragon is progressing to a feasibility study for the Pilbara Iron Project including finalising transport options.
With the Native Title Mining Agreement paving the way for the grant of the Rocklea Mining Lease, Dragon believes that the Pilbara Iron Project is well positioned to be one of the Pilbara region's next producing iron ore mines.
Dragon Energy had $3,188,000 in cash at the end of the March quarter.
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