Short Term Trading Week Starting: Tues 2 Jan, 2018, page-137

STTCOMP DHR, FA Long

MC @ 0.02: 32mill
Cash: 2.25 mill
Listed assets: 14mill
EV: 15.75mill


The company holds 25% (and option to purchase 100%) of 35,000 hectares of exploration licences in San Luis + Cordoba (Argentina) prospective for hard-rock lithium deposits.

At present the company is focused on their Las Tapias and El Totoral prospects...

Las Tapias

- Mined for beryl 1938-1965 with zones up to 80% spodumene and crystals up to 3m long. The spodumene contains extremely high average historical grades of 5.5% Li2O
- 300-400m x 150-200m pegmatite identified, lithium grades up to 5.74% confirmed with recent assays
- 3,000m drilling program scheduled March 2018

El Totoral

- Recent remote sensing program have mapped extensive pegmatites in the area with strike lengths up to 4.5kms in length
- Historical surface samples of up to 3.28% Li2O
- Detailed geological mapping and sampling underway

Upcoming News-Flow

1) El Totoral mapping and sampling update Jan 2018
2) Las Tapias drilling Q1 2018
3) El Totoral drilling Q2 2018
4) Lithium JORC delineation target Q3 2018

Management

Includes...

Nick Mather as chairman – current CEO of SolGold, ~500mill GBP MC co listed on the LSE

Neil Stuart – Cofounder of Orocobre, current lithium producer capped at ~1.4billion AUD.

Directors hold approx 15pc of register.

Investments

DHR owns 35.7% stake in LKO, holdings currently valued at $14 million AUD
- Advanced, drill ready, onshore conventional gas prospects in Victoria
- Also aquired NavGas assets – Roma Shelf, Queensland and Pirie Torrens, Wilkatana Oilfield.
- Court hearing date scheduled for 14 March 2017 LKO vs Vic Govt (expected to take 2-3 days), positive outcome would be a game changer for the company IMO --->  potential to become a Victorian gas producer within 15 months

IMO great risk/reward at these levels with the right leadership and strong news-flow expected across multiple highly prospective lithium projects.