Dynamite Resources Ltd.

Dynamite Resources Ltd.

July 17, 2007 17:30 ET

Dynamite Resources Ltd.: Drilling Program Accelerated at Lake Torrens IOCGU Project, South Australia

Highlights - Drilling progress accelerated by arrival of second drilling rig. - Initial drillhole successfully coring in basement, currently at 900 metres. Second drillhole approaching basement at 600 metres.

TORONTO, ONTARIO--(Marketwire - July 17, 2007) - Dynamite Resources Ltd. ("Dynamite") (TSX VENTURE:DNR) is pleased to announce that a second drill rig has arrived and is drilling at its Lake Torrens iron-oxide copper gold uranium ("IOCGU") project, located in the tenements immediately to the North, West and South of world class BHP-Billiton Limited's Olympic Dam mine in South Australia.

"The first drill rig on site, in its first drillhole, TI-009, successfully intercepted the Titan Prospect basement rocks at around 608 metres in a vertical hole that is currently approximately 900 metres from surface with a rig capable of drilling to 1,000 metres depth", stated Stan Bharti, Dynamite's Chairman.

The current drill program has been designed to test gravity anomalies that are associated, but not coincident with magnetic anomalies within basement rocks from approximately 600 metres depth and that are prospective for IOCGU mineralization of the nearby Olympic Dam and the Prominent Hill style.

Exploration Expenditure and Farm-in Arrangements

Dynamite can earn up to a 51% interest in the Lake Torrens Project from WCP Resources Limited. WCP Resources has a joint venture with Tasman Resources Limited on the Lake Torrens Project. WCP Resources has the right to earn 65% of the Lake Torrens Project, by incurring expenditures of Australian Dollars ('AUD')6.5 million. Dynamite has agreed to fund the AUD6.5 million expenditure over a 5 year period, in exchange for 50% of WCP Resources' interest in the Lake Torrens Project. Dynamite has a call option to increase its overall equity in the Lake Torrens Project to 51% by paying a pre-determined amount to WCP Resources. The transaction is subject to the completion of Formal Agreements which are expected to be concluded by 31 July 2007 or such other dates as agreed by Dynamite & WCP Resources.

Qualified Person

The technical and scientific information in this document is based on information compiled by Mr. Gavin Daneel, who is a Member of The Australasian Institute of Mining and Metallurgy and qualifies as a qualified person under National Instrument 43-101. Mr. Daneel, who is a full-time employee of WCP Resources, has reviewed the technical and scientific information in this press release.

Cautionary Note Regarding Forward-Looking Information. This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects, statements regarding exploration prospects, statements regarding the potential and financial impact of the proposed transaction, the terms and conditions of the acquisition, receipt of requisite approvals and the execution of definitive agreements, the benefits of the proposed acquisition, the identification of mineral reserves and resources, costs of and capital for exploration projects, exploration expenditures, timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; delay or failure to receive board or regulatory approvals; timing and availability of external financing on acceptable terms; not realizing on the potential benefits of the proposed transaction; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and shortages and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Please note: An illustration is available on the Marketwire website at the following link: http://www.ccnmatthews.com/docs/0717dyn.pdf


Contact Information

  • Dynamite Resources Ltd.
    Stan Bharti
    (416) 861-5876