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Dreadnought Resources (DRE) has outlined its mining operations vision at the 2023 edition of Diggers & Dealers, addressing a full room of investors, industry peers, and media in Kalgoorlie this morning.
DRE’s Managing Director, Dean Tuck, took the stage to highlight the company’s uniqueness among its peers – notably that its five major WA projects are supported by the enthusiasm of a younger team.
Mr Tuck emphasised the company is not just a mining or development company, “but might give birth to one or two.” He also clarified that despite having some promising leads in rare earth element (REE) exploration, Dreadnought does not solely identify as an REE company.
Discoverer, not a developer
He further described the company as an explorer focused on delivering organic growth. He highlighted that between 2012 and 2021, 73 per cent of Australia’s national mineral discoveries were fueled by mining juniors.
The company’s intentions are to collaborate with major downstream partners and potentially divest acreage to larger companies to generate value for shareholders. Alternatively, Dreadnought could consider spinning out a separate company or engaging in partnerships with entities as enthusiastic about mining as they are about discoveries.
Mr Tuck noted the Kimberley is a difficult place to work in as a junior explorer given the wet season, and reiterated Dreadnought’s desire to keep up consistent news flow, which pushed it to start snatching up other projects.
Dreadnought’s rise in 2019
The Kimberley asset initially put Dreadnought on the market map, and the company has achieved significant portfolio growth since then.
Mr Tuck discussed the company’s milestone of reaching a $50 million market cap in 2019, which elevated its recognition. He also pointed out that De Grey and Gold Road were responsible for the two largest greenstone belt discoveries in WA’s recent history and expressed a desire to join their ranks.
Dreadnought believes that its nickel prospects may quickly form the next big moment for the company in 2024, though, its rare earth Yin project remains a key focus.
Rare earths understanding needs re-shift
“Over 90 per cent of rare earth value is in neodymium and praseodymium,” Tuck told the crowd, adding that the ‘total rare earth oxide’ (TREO) calculation is a misnomer the industry should move away from.
The NdPr ratio, he said, is what really matters for a rare earths project – and Dreadnought has found high grades of both in its recent assay results for Yin.
Through 2023, Dreadnought will continue to work to improve the scale and metallurgical datasets, before beginning to shape up mineral resources in 2024.
At Mangaroon, the company will kick off further drilling before 2024, chasing after what is understood to be a well-known cluster of high-grade gold hits. The acreage also boasts REE potential.
Base & precious metals news coming
At its Bresnahan heavy REE project, boots will be on the ground later this year ahead of 2024 drilling.
“We have a track record of making discoveries,” Tuck concluded to the audience, noting that the company has more to say on gold, nickel, and copper – and that Dreadnought management itself in aggregate is a 15 per cent shareholder in the company.
