Dark Horse Resources

Website: www.darkhorseresources.com.au
Primary ticker: ASX:DHR
Stage of development: Exploration
Commodity: Gold
Project location: Argentina

Live financials

Cash: 18K

Major shareholders:
DGR Global – 16%
Neil Stuart – 12%
David Mason (MD) – 8%
Directors & Management – 7%
Other – 7%
Management ownership – 15%

Dark Horse Resources (ASX:DHR) is a mineral resource company with a particular focus on Argentina. It has invested in Gold projects, with goals to discover a multimillion ounce gold deposit. Dark Horse Resources also has a substantial holding in Australian-based, ASX-listed oil and gas exploration company Lakes Oil NL. The team has an impeccable track record of accumulating strategic, multi-billion dollar mineral assets in dynamic geological environments.

Management Profile

David Mason, CEO

David Mason has a broad corporate, management and mining background achieved through working in the exploration and mining industry for 35 years throughout Australasia, Asia, Southern Africa and South America. David is the Managing Director of Dark Horse Resources, a member of the DGR Global Group, focusing on mineral resources in South America. David had executive director roles with Intra Energy Corporation Limited, a coal producer in East Africa; Overseas & General Limited an Indonesian mining company; Haddington Resources (now Altura Mining) a new Australian Lithium producer; and the Swabara Group, which developed the Adaro Indonesia coal mine, the Pulau Laut shipping terminal and the 1,260MW thermal Paiton Power Station.

What is your rationale for attending 121 Mining Investment?

DHR is looking to increase its exposure into UK and European investment circles, and attract new investors and funds into the company. DHR is raising capital at present. DHR has a continuous stream of news flow as we progress the exploration and resource definition of our projects to JORC standard.

What recent news would you like to highlight to investors attending?

Dark Horse expanding, and looking to acquire high potential precious metals projects in alternative geographic locations. New exploration, discovery and resource definition results for DHR’s Gold projects in Argentina including drilling at the Las Opeñas and Cachi Gold projects. Lakes Oil exploration results from their large suite of oil and gas properties in Australia and PNG.

What are your key goals for the next 3, 6 and 12 months?

3 Months:
To commence the second phase of drilling at the Las Opeñas Gold Project, first phase drilling at the Cachi Gold Project.

6 Months:
To have acquired high potential precious metals projects in alternative geographical locations and commenced exploration.

12 Months:
Resource definition drilling at the Gold projects to define JORC resources.

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

• Having sufficient capital to continue exploration on all of the Argentine projects. Currently, DHR is raising capital in new jurisdictions and looking at JV partners to participate in the ongoing exploration costs once a discovery is made.
• Continued low share price. Current share price and hence market cap represent only our holding in Lakes Oil. No value is given to our Argentine assets. We are in high value commodities in a region which is prolific in their discovery and production. It will take only one project success in Gold, or Lakes that will re-rate Dark Horse significantly.

What do you think makes your company such a compelling investment?

DHR has:
• Two significant epithermal gold projects in proven Gold regions which have the potential of 2M and 5M oz of Gold respectively.
• Substantial 30.4% holding in gas explorer Lakes Oil (ASX:LKO) which diversifies commodity and geographic risk. It also provides a floor to the Dark Horse market capitalisation, protecting investor capital.
• A management team and board that has extensive experience in finding, developing and creating shareholder wealth from mining and resource projects.

Analyst Insight – provided by Independent Investment Research

Dark Horse Resources is an ASX-listed resource company with a focus on Argentina, where it has invested in lithium and gold projects.

The company aims to produce high-grade lithium hydroxide for the domestic and international battery and electronic markets by targeting >50 million tonnes of lithium spodumene resources grading 1.5% Li2O in central Argentina and defining a large lithium brine resource in northern Argentina.

Dark Horse holds an extensive portfolio of lithium spodumene projects in the central Argentina provinces of San Luis and Cordoba, through an agreement to acquire Argentinian company, Pampa Litio SA. Dark Horse currently owns 25% of Pampa Litio SA and is able to execute 100% ownership at any time by paying the vendor 75 million DHR shares. The short‐term objective is to produce spodumene concentrate from the central Argentinean projects creating early cash flow and introducing lithium products to the market.

Dark Horse has a defined work program that includes resource definition, JORC Reporting and feasibility, culminating in mining and infrastructure development. The company is seeking a strategic partner to support and fund this work program. In return, Dark Horse will provide a 100% lithium products off-take.

The company also aims to discover and define multi-million-ounce gold deposits. The Las Opeñas Gold Project is a 1,462ha lease located in the north-western region of San Juan Province, host to numerous third-party, multi-million-ounce epithermal style gold-silver deposits in the Andes Mountains including Veladero (12Moz), Pascua Lama (18Moz), Gualcamayo (2Moz) and Casposo (0.45Moz) in San Juan Province and El Indio (8Moz) in neighbouring Chile.

The company is continuing surface exploration works across its portfolio of Santa Cruz gold projects in Santa Cruz province. Regional reconnaissance work to date has confirmed the Cachi and Rosita Norte tenements as prospective for epithermal gold-silver mineralization. Other tenements in the Santa Cruz portfolio continue to be explored and evaluated.

Dark Horse has a power generation subsidiary, Dark Horse Energy and a substantial holding (31%) in ASX-listed oil and gas company Lakes Oil NL.