Highlighting the potential undervaluation of Dart, even the lower end of the price range is more than double the last traded price of A$0.105.
The following is an extract from the report.
Dart Mining NL is an Australia exploration company focusing on base metals and gold exploration in north east Victoria. The company owns 100% beneficial interest in seven tenements, which lie within the Lachlan Fold Belt (LFB), a known host of ore bodies, including the Cadia, Ridgeway and North Parkes porphyry deposits in New South Wales and the Stockman VMS deposit in Victoria.
The principal porphyry intrusive within Dart's tenement holding is the Unicorn porphyry, which has significant molybdenum, copper and silver (Mo-Cu-Ag) mineralization in multiple stacked high grade zones.
The initial Resources are interpreted to represent only the upper limits of a very large intrusive porphyry system. Dart Mining announced maiden JORC Resources (Indicated +
Inferred) in Oct-2011 at 105MMT @ 0.07%Mo equivalent (MoEq) which included 29MMT @ 0.09%MoEq.
A significant resource upgrade is expected with deeper diamond drill holes planned to test the system beyond 450m in 2012. Dart Mining's other projects, namely, Morgan, Mountain View, and Fairley's are also know to possess potential mineralization, and are relatively underexplored.
Dart Mining has adopted a unitary strategy of developing its prospects, with its current operational and financial resources channeled principally into the Unicorn Prospect.
It has definitive plan to bring the prospect to production by 2016 / 2017, supported by adequate funding. The company has a cash balance of approximately AU$4.2MMvi, sufficient to fund its drilling program, commenced in April 2012.
The program plans 16 reverse circulation holes from surface to 250m. The Initial assay results from 3 of the 16 RC drilling holes planned shows encouraging results with 0.14% MoEq, 0.06% Mo, 0.13% Cu and 11.30ppm Ag. This confirmed the potential for increase in the size and grade of the Resource.
Dart Mining aims to continue exploration on its tenements (mostly undrilled) for gold and base metals in north-east Victoria. It also intends to find Joint Venture partners for, or divest, its Mountain View and Fairley's Gold Prospects.
The firm understands that the Morgan porphyry project will be the follow up exploration route after Unicorn has achieved stability. The firm believes that Dart Mining benefits from porphyries with significant mineralization potential and diverse commodities, supported by a strong management team, adequate funding, and channeled project execution approach.
These positives more than offset risks arising from regional concentration and adverse movements in commodity prices.
Given due diligence and valuation estimations based on a blend of Resource Based Valuation and Discounted Cash Flows, the firm believes that Dart Mining's fair share value lies between AU$0.23 to AU$0.49.
Valuation is based on the company's flagship project, the Unicorn project targeting Mo, Cu, and Ag. This conservative estimate does not factor in the potential value of the company's other current and future projects.
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