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Dart Mining increases bank balance to A$2.4 million with option exercise

Dart Mining (ASX: DTM) has raised A$1.54 million from the exercise and underwriting of 15.4 million listed options at $0.10 each to fund further drilling at the Unicorn Deposit in northeast Victoria and for working capital.

Tellingly, 67%, or 10.4 million, of the options were exercised on or before the 31 December 2011 expiry by shareholders, raising about $1.04 million of the funds.

Bell Potter Securities agreed to underwrite the full 15.4 million listed options and has now made valid applications for the remaining 5 million options not exercised, raising a further $503,979.

Dart Mining’s bank balance has now grown to $2.4 million

Managing director Lindsay Ward said, “We are optimistic about 2012, and shareholders can look forward to the outcomes of the 2012 drilling program, as Dart Mining further develops the Unicorn Deposit into what could become a world-class molybdenum plus copper plus silver project in northeast Victoria.”

Dart Mining’s drilling program at Unicorn is scheduled to begin in February.

An ongoing Scoping Study of metallurgical test work for the Unicorn Deposit has indicated high recoveries of 92.3% molybdenum, 96.1% copper and 82.6% silver.

Another plus from the Scoping Study is that saleable grades of 51% molybdenum and 23% copper plus silver concentrates were produced and with further test work it is expected that the metal percentages, especially copper, can be improved.

Importantly, these early results improve the Unicorn development potential.

Based on this initial Scoping Study metallurgical test work and the 105 million tonnes at 0.07% molybdenum equivalent JORC resource, the Unicorn deposit is estimated to contain approximately 38,000 tonnes of recoverable molybdenum, 58,000 tonnes of recoverable copper and 8.6 million ounces of recoverable silver.

A further boost to the potential of Unicorn is that the resource remains open at depth, with the only hole through the middle of the deposit intersecting 40 metres at 0.09% molybdenum equivalent from 348 metres, including 18 metres at 0.11%.

Late last year, Dart uncovered additional magnetic and topographic anomalies within the Unicorn-Morgan structural corridor following a review of regional geochemistry.  

The anomalies defined from the review highlight the highly prospective nature of the intersection of the Zulu and Unicorn-Morgan structural corridors, an area of some 400 square kilometres.

The Unicorn-Morgan structural corridor contains a number of unexplored topographic highs and multiple discrete spot magnetic highs that could potentially lead to further discoveries of other mineralised porphyritic stocks similar and in close proximity to Dart’s Unicorn molybdenum-copper-silver deposit.

Future of Molybdenum

The outlook is positive for molybdenum with prices hovering around US$30,000 per tonne.

Molybdenum is a growing market of around 220,000 tonnes per annum, with supply shortages predicted. The metal adds strength, hardness and toughness to steel.
It has applications in corrosion resistance in petrochemical industry pipework, as well as in the automotive and aerospace industries.
It is a new age metal with strong potential for use in renewable energy and also has applications in nanotechnology.