Topic: How To Invest

Pat: What do you think of Dragon Mountain Gold on the Australian Stock Exchange? Regards.

Article Excerpt

Dragon Mountain Gold, $0.22, symbol DMG on the Australian exchange (Shares outstanding: 210.8 million; Market cap: $46.4 million), holds 75.2% of the Lixian gold project. Lixian is in Gansu province, in central China, and is the company’s most advanced project. (All figures in Australian dollars.) The project has an established mineral deposit, and is in an area that has a history of gold production. Dragon Mountain has submitted a mining area demarcation application for the Liba area, which includes the Zhao Gou and Ma Gou deposits, both of which are within the Lixian project. This application is the first step in applying for a mining license. The Chinese Ministry of Lands and Resources is studying Dragon Mountain’s application. The Zhao Gou deposit holds an estimated 1.6 million ounces of gold. Dragon Mountain hopes to build an open-pit mine and start production at Zhao Gou in 18 months. The Ma Gou deposit holds an estimated 1.2 million ounces. The company could…