Dragon Energy Limited (ASX:DLE) Announces 140-190 Million Tonnes Of Iron Ore Exploration Target At Nameless Tenement In Central Pilbara

Perth, Mar 1, 2011 AEST (ABN Newswire) - Dragon Energy Limited (ASX:DLE) is pleased to announce an Exploration Target of 140 to 190 Million tonnes at a grade of 48 to 52% Fe (54 to 56% calcined Fe) at the Company's 100% owned Nameless tenement in central Pilbara.

Dragon has undertaken 2D and 3D modelling of the tenement. Channel Iron Deposit ("CID") mineralisation has been identified within a 17 kilometre long channel, of which 13 kilometres has previously been RC drill tested by AusQuest (ASX:AQD) and Rio Tinto (NYSE:RIO) (ASX:RIO) on wide traverse spacings, providing a high level of confidence in the forthcoming drilling program.

An Exploration Target of the CID mineralisation of 120 to 160 Million tonnes at a grade of 48 to 50% has been estimated. In the south eastern area of the tenement in addition to CID mineralised Marra Mamba Iron Formation has also been intersected in RC drillholes. An exploration target of 20 to 30 Million tonnes of Marra Mamba mineralisation at 49 to 52% Fe has been estimated.

Geological software package "MapInfo Discover 3D" was utilised to interpret the mineralised zone from previous exploratory RC holes. A wireframe model was generated from which the volume of mineralised CID and Marra Mamba Iron Formation was calculated.

Dragon will proceed with a staged drilling campaign to infill previous drilling in order to define a JORC resource. This drilling program is fully funded from cash reserves.

Nameless is expected to provide a resource that will complement Dragon's 100% owned Rocklea tenement which lies 24km to the south west and which has an Inferred JORC Resource of 63.1Mt @ 53.4% Fe (60.4% calcined Fe) at 50% Fe cut off grade (AusQuest ASX release 17 August 2009).

For the complete Dragon Energy announcement including a diagram, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/66268-ASX-DLE-531378.pdf

Contact

Gang Xu Managing Director Tel: +61-8-9322-6009 Mob: +61-411-039-645 Mark Hafer Exploration Manager Tel: +61-8-9322-6009 Mob: +61-403-966-776 http://www.dragonenergyltd.com/