Dynasty Metals Australia Limited (ASX:DMA) directors submit their report for the half-year ended 31 December 2011.
The names of the Company's directors in office during the half-year and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated.
Tom Pickett - LLB
(Non-Executive Chairman from 21 September 2011) - appointed 19 September 2011
Lewis Tay - B.App.Sc.DipAF
(Managing Director from 21 September 2011, Non-Executive Director to 21 September 2011)
Bin Wang - (Non-Executive Director)
Richard Oh - CA MAICD
(Executive Chairman) - retired 19 September 2011
XiaoDong Sun - LLB
(Non-Executive Director) - retired 19 September 2011
Terence Gygar - LLB
(Alternate Non-Executive Director) - retired 19 September 2011
REVIEW OF OPERATIONS
Your Board's primary focus has been on improving the value of the Spearhole Project ('Spearhole'), which is located south-west of Mt Newman in the Pilbara region of Western Australia. A desktop scoping study demonstrated that Spearhole is commercially viable and your Board aims to further improve the commercial value of Spearhole by improving the beneficiation yield and Fe recovery grade of the resources. Following discussions with several mineral processing institutions in Australia and China, the Company appointed the Chinese Northeastern University (NEU) to assist in this process. The NEU is one of the leading research institutions in iron ore processing, and specialises in upgrading Fe content in detrital and channel iron deposits. The Board has also been in active discussions with a number of major steel mills and investment institutions regarding the development of Spearhole, as well as exploring the infrastructure solutions for this project.
The Spearhole Project represents less than 10% of the prospective tenements that your Company holds in WA. In addition, the Company has identified several new potential target zones in the region.
Preliminary geochemical work on the south-west of Newman and in the Tom Price / Marandoo areas has been approved by the Board to commence in the short term. Ongoing drilling programs targeting the DSO mineralisation in the southern Prairie Project area is also planned to recommence in April / May 2012.
The Company has recently received a farm-out joint venture approach to one tenement from a respected iron ore producer, and the Company is still in early stage of discussion to evaluate this opportunity.
The Company aims to finalise the farm-out joint venture with China Coal Geology Engineering Corporation, as previously announced, which is a key step to enable the Company to reduce costs on non-core tenements whilst maintaining participation in project upside.
The Company continues to make all commercial efforts to recover the costs awarded in its favour associated with defending the March 2011 EGM litigation.
RESULTS OF OPERATIONS
The Company incurred an after tax operating loss for the half-year ended 31 December 2011 of 809,870 (2010: 1,860,897).
AUDITOR'S INDEPENDENCE DECLARATION
We have obtained an independence declaration from our auditor, Deloitte Touche Tohmatsu, which is included on page 6.
Signed in accordance with a resolution of the Directors.
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