Iron Assets - Iron Royalties
De Grey has sold iron ore rights over some of the Company’s tenements in the Turner River Gold and Turner River Base Metal projects to Atlas Iron Ltd. Royalties of 1% and 2% of gross value of iron ore sales apply under two agreements with Atlas.
Atlas have defined an inferred resource of 2Mt @ 58.5% Fe1 in hematite (DSO) mineralization at Mount Dove. After further drilling to better define the resource, the majority of it is expected to report to ore reserves. Atlas have applied for a mining lease and expect to begin production from Mount Dove in 1H 2012. De Grey’s royalty payments are likely to amount to $2 million to $3 million dollars across 2012-2014.