Dynasty Metals Australia Limited (ASX:DMA) Beneficiation Testing Confirms 120Mt-167Mt DSO Grade Product Potential at Spearhole

Perth, Aug 12, 2011 AEST (ABN Newswire) - Following the discovery of 1.4Bt of ironstone gravel detritals within Dynasty Metals Australia Limited's (ASX:DMA) E52/1927 Prairie Downs project, beneficiation testing has been focusing on low cost gravity and magnetic processing without grinding for the 930 Mt inferred resource grading at >27%Fe. Material >6mm has been crushed to under 6mm for the testing.

The resource is made up of unconsolidated gravels starting at the surface and continuing to depths of around 30m. The material should be able to be bulk mined at a low cost and hence the testing has been on sonic drilling samples taken through the entire resource, rather than specific horizons.

The results referred to here are based on the processing larger samples from two separate areas, Area 3 and Area 2.

These preliminary results are presented as a range of results to reflect the variation in results of testing different materials and different separation methods and density cutoffs. Area 3 showed superior yield and grade to Area 2. Further testing is underway to optimise the process and maximise the yield.

Over 50% of the materials are fines of <1mm size. This fraction can be removed simply and cheaply and processed separately using spirals and magnetic separation. The coarser material (>1mm) grades around 37-40% prior to beneficiation. The yield on the beneficiation of this material is around 25-35% (13-18% of bulk sample). This low cost upgrade to the material may be critical to the economics of the beneficiation process.

Results for the testing have identified the following range estimates for the products. The mid grade product will be examined for further potential upgrade to increase the overall yield.

On 27 October 2010, Dynasty announced a 1.4 billion tonne JORC-Compliant inferred Resource including 932 million tonnes at 27.4% Fe at a cut-off grade of 20% Fe for the Company's Spearhole Detrital Iron deposit ("ironstone gravel") at Prairie Downs in the Pilbara region of Western Australia.

For the complete Dynasty Metals announcement including figures and tables, please refer to the following link:
http://media.abnnewswire.net/media/en/docs/ASX-DMA-553030.pdf

Contact

Dynasty Metals Australia Limited Tel: +61-2-9229-2710 Fax: +61-8-9322-7211 Email: admin@dynastymetals.com.au http://www.dynastymetals.com.au