DART MINING NL - Interim / Quarterly Report 2012

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ASX ANNOUNCEMENT

15 October 2012

ASX Code: DTM

Investment Data

Shares on issue 182,937M Unlisted options 8.35M

Shareholders

REPORT FOR THE QUARTER ENDED 30[TH] September 2012

203MT TOTAL RESOURCE – MEASURED 50% / INDICATED 18% / INFERRED 32%
102MT MEASURED RESOURCE AT 0.07% MOEQ[1] CONTAINING A HIGH GRADE MEASURED RESOURCE ACCESSIBLE FROM SURFACE OF 54MT AT 0.08% MOEQ[1]
INDICATED TO MEASURED RESOURCE CONVERSION AT MINIMAL LOSS OF GRADE
SCOPING STUDY RESULTS EXPECTED IN OCTOBER
BELL POTTER RELEASES UPDATED RESEARCH REPORT
SUCCESSFUL COMMUNITY MEETINGS HELD
CASH AT BANK AS AT 30 SEPTEMBER 2012 - $2.3M

Top 20 Hold 36 %

SUMMARY

Key Projects / Metals

Unicorn Porphyry Mo-Cu-Ag
Morgan Porphyry Mo-Ag-Au
Mountain View Lode – Au

Mo – Molybdenum Cu – Copper Au – Gold Ag – Silver

Board & Management

Chairman

Mr Chris Bain

Managing Director

Mr Lindsay Ward

Executive Director

Mr Dean Turnbull Manager – Exploration

Non-Executive Directors

Mr Stephen Poke Mr Richard Udovenya

Contact Details

Dart Mining NL Level 2 395 Collins Street Melbourne VIC 3000 Australia

Mr Lindsay Ward

Phone: +61 (0)3 9621 1299

Dart Mining NL (ASX: DTM) has had a highly successful quarter with the JORC compliant Mineral Resource upgrade announced on the 5[th] of September 2012 showing a 100% tonnage increase and lifting some 50% of the total resource into the Measured Category. Importantly, 54Mt of the 102Mt Measured Mineral Resource is consistently high grade from surface which could have a very positive effect on the economics of the deposit with some of the highest grade ore available to be mined within the first 3 – 5 years of production.

Dart Mining released its target cash costs for the project in late September potentially placing Unicorn in the lowest cost quartile on an onsite cash cost basis when compared to other Western molybdenum producers. The low target cash costs highlight the projects many infrastructure and strip ratio advantages.

Dart Mining’s key objectives for the drilling program and moving the JORC resource from “Indicated” to “Measured” status were achieved on schedule and budget. The next milestone is the release of the results of the Scoping Study which remains on track for October.

Significant intersections from the RC and diamond tail resource upgrade drill program include DUNRC011: 64m @ 0.1% MoEq1 (inc. 24m @ 0.13% MoEq1); DUNRC006: 172m @ 0.1% MoEq1 (Inc. 82m @ 0.14% MoEq1); DUNRC005: 170m @ 0.08% MoEq1 (Inc. 48m @ 0.1% MoEq1) and DUNRC004: 100m @ 0.08% MoEq1 (Inc. 58m @ 0.1% MoEq1), illustrating a robust resource from surface. Such intersections highlight the benefits of having high grade material from surface that strengthen the project’s economics and generate early cash flows.

A successful community meeting was held in July with some 10% of the Corryong Community attending the meeting. A presentation was provided by Lindsay Ward, Managing Director of Dart Mining and provided an opportunity for the community to ask questions.

Email: [email protected]

Visit our webpage: www.dartmining.com.au

Cash at bank as at 30[th] September 2012 was $2.3M.

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RESOURCE UPGRADE

The Resource upgrade (Table 1 – Figure 1) has been very successful resulting in a 100% Resource upgrade and has highlighted an extensive high grade zone within the Measured Mineral Resource (54Mt at 0.08% MoEq[1] ) accessible from surface with a minimal strip ratio (refer Figure 3). Should Unicorn move into production at a later stage these high grade blocks could assist early cash flows from the project. The combined Measured and Indicated Mineral Resource of 138Mt at 0.06% MoEq[1] (at a 400ppm MoEq[1] cut off) could support a mine life in excess of 20 years at 5Mtpa production rate or approximately 15 years at 10Mtpa – a production rate that would enable significant economies of scale to be achieved. (Refer also Drilling Results below).

At a cut off of 400 ppm MoEq[1] the total Mineral Resource contains 72,000t (159Mlb) of Mo, 98,000t (216 Mlb) of Cu and 19.4Moz of Ag Insitu metal.

The total Mineral Resource of 203Mt at 0.06% MoEq[1] including 102Mt at 0.07% MoEq[1] in the Measured Category remains open at depth below 450 metres. It should be noted that potential for additional high grade stacked Mo horizons, typical of a Climax style porphyry intrusive, have already been intersected below the current resource base with 13.8m @ 0.09% Mo including 2 metres at 0.48% Mo in DUNDD005 at a depth of 538 metres. This is some 200 metres below the base of the current Mineral Resource and highlights a clear potential for a Henderson (Colorado, USA) style series of mineralised pulses to be developed beneath the current Resource at Unicorn. Table 1. Contained Insitu Metal

Table 1. Contained Insitu Metal	Table 1. Contained Insitu Metal	Table 1. Contained Insitu Metal	Table 1. Contained Insitu Metal	Table 1. Contained Insitu Metal	Table 1. Contained Insitu Metal	Table 1. Contained Insitu Metal
							INSITU METAL
JORC CLASSIFICATION	TONNAGE (Mt)	MoEq1 Cutoff (%)	Mo Eq1 (%)	Mo (%)	Cu (%)	Ag (g/t)	Mo (t)	Cu (t)	Ag (Moz)
MEASURED	102	0.04	0.07	0.04	0.06	3.58	37,561	61,305	11.8
INDICATED	35	0.04	0.06	0.04	0.04	2.75	12,792	14,629	3.1
INFERRED	66	0.04	0.05	0.03	0.03	2.15	21,863	21,863	4.5
TOTAL	203	0.04	0.06	0.04	0.05	2.97	72,216	97,798	19.4
Contained Within the Measured Mineral Resource is:
MEASURED*	54	0.06	0.08	0.04	0.08	4.61	22,016	44,300	7.9

Variables and factors that influence Tables 1.

- Measured Mineral Resource at 0.06% MoEq[1] cutoff of 54 Mt @ 0.08% MoEq[1] is included in the 203 Mt @ 0.06% MoEq[1] at a 0.04% MoEq[1] cutoff.
MoEq[1] (Molybdenum Equivalent) = Mo + (Cu / 3.44) + (Ag x 34.3) (assumes equal metallurgical recovery for each metal) – see Note 1.
Estimated by ordinary kriging on 50 x 50 x 50m blocks at 400ppm MoEq[1] cutoff grade (cut off considered to represent a level at which the combined value of recoverable metals clearly shows reasonable prospects for eventual economic extraction).
Top cutting has been applied to high grade drill intersections at different values for each metal, such that grades used in the Mineral Resource do not rise above the following upper limits:
Molybdenum cut off: 3500ppm (0.35% Mo). Maximum value in drill hole samples 6260 ppm Mo
Copper cut off: 10000ppm (1.0% Cu). Maximum value in drill hole samples 17,800 ppm Cu
Silver cut off: 50ppm (50 g/t Ag). Maximum value in drill samples 100 g/t Ag
Bulk Density assigned by lithology. Silica Cap – 2.72 g/cm[3] ;Quartz Feldspar Porphyry 2.67 g/cm[3] ; Polymict Breccia 2.73 g/cm[3 ] ; Igneous Breccia 2.72 g/cm[3] ; Diorite 2.67 g/cm[3] and Sediments / Sedimentary Breccia 2.68 g/cm[3 .] A total of 27 samples were used to estimate the representative bulk density of each style of lithology / mineralisation.

Note 1: Molybdenum Equivalent Assumptions: Based on relative value (with reference to the average price) of each metal in the 2 months June 22[nd] to August 23[rd] 2012 listed on the LME for Molybdenum and Copper and average price for the same period for Silver as follows:

Mo US$25,871 per tonne
Cu US$7515.7 per tonne
Ag US$27.6 per ounce

The Molybdenum Equivalent grade should not be interpreted as actual molybdenum grade as the conversion ratios vary with the volatile prices of Mo, Cu and Ag. However, it is the Company's opinion that elements considered here have a reasonable prospect to be recovered.

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Figure 1: Resource drilling and geological plan – Unicorn Mineral Resource Update 2012

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Figure 2: Drilling DUNRC020 – part of the resource update program with approved drill access track construction works

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Figure 3: Unicorn Mineral Resource Update 2012 (Top) 5,978,050mN cross section showing only the Measured Resource volume with block grades higher than 600ppm MoEq[1] highlighted in magenta outline and cross hatch. (Bottom) Long Section on 588,800mE looking east showing the same block grade information – Note only a small portion of the M3 zone falls within the Measured Resource Classification.

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SCOPING STUDY UPDATE

The Unicorn scoping study is near completion and scheduled for release in October. With separate reports covering construction; plant design; processing; logistics and operating costs now prepared by respected industry experts and the results of the resource upgrade available for mine scheduling and optimisation, the scoping study can now be finalised.

Initial results suggest that a cash cost within the lower quartile is a realistic target with near surface blocks within the Measured Mineral Resource providing some of the highest grade ore available to be mined within the first 3 – 5 years of production.

It is Dart Mining’s view that given the level of effort, attention to detail and quality of the organisations involved in the study, the scoping study is approaching prefeasibility except for the completion of more detailed metallurgical studies and will give investors a very good understanding of the projects economic potential.

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The section is conceptual only. There has been insufficient exploration drilling, financial modelling & mine planning to accurately define the pit shape and it is uncertain if further drilling will enable this to occur.

Dart Mining are targeting to be in the lowest cost quartile for both the cash cost per lb (target of US$4 - 5/lb[1] ), Graph 1 and cash cost per mined and milled tonne (target of US$9 - 10/t[1] ), Graph 2, possible due to the unique advantages found at the Unicorn deposit. (Note 1. At an exchange rate of $A/US $1.05)

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Graph 1

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Graph 2

DART MINING RECEIVES RESEARCH COVERAGE

Bell Potter Research Securities released a recent research report. The report summary states:

“The resource upgrade at Unicorn included an impressive 93% increase in the size of the JORC resource to 203Mt at 0.06% MoEq, from 105Mt previously. This increase was largely a result of the inclusion of higher grade mineralisation within the indicated portion of the resource and the inclusion of surrounding breccia zones previously not included in the October 2011 resource estimate. The upgraded resource estimate has provided a better sense of the scale of the project, ahead of feasibility studies. Importantly, the measured resource (102Mt at 0.07% MoEq) starts at surface and can be accessed with very low strip ratio in the early years of the operation. We note that there is further resource upside with deeper drilling planned for March below 450m to

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test for further stacked high grade mineralisation similar to that already identified in drill hole DUNDD005 with 2m at 0.48% Mo below 538m depth.”

Despite difficult current stock market conditions, Bell Potter has maintained their speculative buy recommendation with a target price of $0.18 per share. The full report is available on the Dart Mining website, - - http://www.dartmining.com.au/investor centre/research reports

In September, the Managing Director undertook a road show to Singapore, meeting a range of brokers, family offices, high net worth individuals, small funds and an investment bank over three very full days. A further trip to the USA and Canada is scheduled for October 2012.

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SUCCESSFUL COMMUNITY MEETING

Dart Mining held 2 community meetings in July. The first was held in Corryong with Lindsay Ward giving a presentation on Dart’s progress and plans for the future leading to positive questioning on jobs, community impact, noise and environmental issues. The second meeting was held at the Biggera Valley tennis club for local residents living within the valley that provides access to Mt Unicorn.

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