Dynamic Metals targets gold overlooked by WA nickel hunters
Dynamic Metals (ASX: DYM) has wrapped up a 434-sample soil sampling program at its Redross gold prospect in Western Australia, chasing down shallow gold hits unearthed by previous explorers who were hunting for nickel.
The prospect is part of the company’s extensive 800-square-kilometre Widgiemooltha project, 100km south of Kalgoorlie and lies along strike, just 25km south of its Princess Sally prospect, where a recent soil geochem program has outlined a 900-metre-long gold anomaly.
Dynamic's review of historical data at Redross unearthed several shallow gold intercepts from aircore drilling conducted for nickel on the ground between 2008 and 2009. Amongst the data was a three-metre hit grading 0.38 grams per tonne (g/t) gold from 60m right at the end of the hole. Other encouraging results from the nickel-focused campaign include 6m running at 0.19g/t gold from just 49m and 3m grading 0.19g/t gold from 51m.
Notably, the holes sit roughly 320 metres apart along the prospective ultramafic contact, yet their tantalising gold potential was never followed up. Believing old-school soil sampling may have missed some of the area's gold potential, Dynamic is now applying modern Ultrafine+soil geochemistry, a more sensitive technique used to sharpen targets ahead of a potential reverse circulation (RC) drilling campaign.
The completed soil program involved infill sampling on a nominal 200m by 50m grid, along with a broader 400m by 100m sampling survey across the prospect area. The Redross campaign is the latest salvo in a sweeping gold targeting program across Dynamic's Widgiemooltha tenure, which includes the interpretation of geophysical data sets at the company's Lake Zot and Princess Sally prospects and planned follow-up reverse circulation drilling at its Little Pea prospect.
The campaign comes as gold rides high, with spot prices continuing to hover around A$6000 an ounce, fanning the flames of exploration and merger and acquisition interest across WA’s goldfields. The state’s gold sector remains a powerhouse, with the government valuing production at more than A$29 billion for the 2024–25 period.
We are systematically building proof of concept for the latent gold upside within our Widgiemooltha tenure with our ongoing gold exploration program. Redross represents the latest example of this opportunity, with assay results to follow providing potential to build on the recent announcement of a 900m gold anomaly identified at our nearby Lady Sally target. Dynamic Metals managing director Karen Wellman
The renewed focus on forgotten or parked prospects at Widgiemooltha forms part of a broader strategy that has seen Dynamic astutely manage its portfolio, using a project generator model to provide non-dilutive funding for its priority targets.
The company recently sold its Lady Jane gold project to First Au for $650,000 cash plus a royalty. That deal also locks in a $250,000 drilling commitment from the new owner and follows an earlier deal to offload its Chalice South prospect to Corazon Mining for up to $3.5 million in cash, shares and milestone payments, in addition to a royalty.
The spate of savvy deal-making has allowed Dynamic to focus its capital on a pipeline of targets at Widgiemooltha. Beyond its gold riches, the ground also holds plenty of lithium potential, attracting the attention of mining giant Mineral Resources, which has a joint venture covering part of the project’s lithium rights.
While gold is the current focus, the company's portfolio holds another card: its Meentheena fluorspar project in the Pilbara. Dynamic recently lodged a Reserve Access Management Plan following encouraging environmental surveys. Historic grades of up to 82.8 per cent calcium fluoride and metallurgical recoveries of acid-grade concentrate exceeding 97 per cent purity support its plans for maiden drilling once approvals are secured. Fluorspar is gaining strategic importance in the semiconductor and battery sectors.
Once the pending assays from Redross land in about six weeks, the company will assess them in conjunction with historical drilling and geological data to define priority areas for a potential RC drilling campaign. The results will be weighed alongside exploration data from Princess Sally and Lake Zot, together with fresh drilling intelligence from its Cognac West gold-copper prospect, where gold mineralisation was recently confirmed at depth.
With a systematic, multi-pronged and cleverly-funded exploration strategy in play across a massive and prospective landholding, Dynamic appears to be building a solid foundation at Widgiemooltha. If the upcoming assays from Redross can successfully light up some new drill targets, things could become very interesting.
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