Following is a copy of the report.
Aiming for a significant resource upgrade in Q3
Impressive intersections. Dart Mining NL (DTM) has announced highly encouraging drilling results from its 20-hole resource upgrade drilling programme at the Unicorn molybdenum-copper-silver porphyry project in Victoria.
The latest drilling results have highlighted the potential to extend the boundaries of the Unicorn deposit to the south and east beyond the current conceptual pit boundary (see drill hole plan below).
The latest drilling returned impressive intersections of up to 30m at 0.18% MoEq in DUNRC008 and significant copper mineralisation (20m at 0.7% Cu) was identified in the northern part of the deposit (overall this hole intersected 186m at 0.06% MoEq from surface).
We expect there is significant potential to expand the existing resource of 105Mt at 0.07% MoEq.
Resource upside likely. These drilling results have confirmed that the surrounding brecciated material is strongly mineralised (not waste) and can be included in the upgraded resource estimate.
We note that with the inclusion of this material, DTM's conceptual pit design could have a very low strip ratio to significantly improve the economic viability of the project.
Drilling intersected 252m at 0.06% MoEq including 54m at 0.08% MoEq within the breccia (DUNRC007).
Drilling will likely be completed by July and with one more batch of assay results to be announced in coming weeks, DTM is well placed to announce the resource upgrade for the Unicorn project in August/September.
Investment view - Buy, Speculative (Target Price $0.18/sh). We view DTM as an encouraging molybdenum resource development opportunity in an underexplored porphyry province in Victoria.
DTM is targeting initial production of 5Mtpa (~25-30ktpa of metal-in-concentrate). There is strong support for the project by the local community and a ready workforce.
DTM has significant infrastructure advantages and would benefit from significant cost savings during development as the Unicorn project is located 100km from Albury and is supported by power, water, sealed roads and community housing plus existing logistics infrastructure to transport concentrate to smelters in Asia.
The latest drilling at Unicorn has demonstrated the potential for a significant upgrade to the existing JORC resource in Q3, CY12. DTM will likely outline a Scoping Study for Unicorn in Q4, CY12.
We reiterate our Buy (Speculative) recommendation for DTM with a 12 month target price of $0.18/sh.
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