Monday, January 14, 2013

Dart Mining (DTM.AX) Exploring for Metals

Dart Mining (DTM.AX) is developing Mo / Cu / Ag deposits in Australia.  I've finally figured out that small Australian companies name their head cheese Managing Director instead of CEO.  Dart's MD has worked in mining engineering and various sectors supporting the mining value chain, and its Chairman is a geologist.  That's pretty cool.

Their most advanced property right now is their Unicorn project, with power, water, and roads already nearby.  The MII grades for each of those three metals are very low compared to world averages for new discoveries.  IMHO the company will have a hard time making that project viable if metal prices collapse, even if the planned mine has a low strip ratio.  Their other projects are still exploration targets with no 43-101 data although a couple of their drill results show promising Au grades.  Dart Mining is benefiting from local government grants that help fund its early exploration program, which is undeniably helpful in conserving investors' cash.

Their 2012 annual report shows their burn rate has doubled to over $1M/year since they stepped up their drilling programs.  They had just under $3.5M in cash on hand on June 30, 2012, giving them about three and a half years in which to strike valuable grades at any of their active projects.

Dart Mining trades under a dime right now but they have plenty of time to discover valuable deposits.  I'd like to see what their drilling programs find later in 2013.

Full disclosure:  No position in Dart Mining at this time.