Dynamic unveils high-grade anomalies in WA gold-nickel town

Dynamic Metals has unearthed further high-grade gold-in-soil anomalies at the Cognac West prospect within its Widgiemooltha project that sits about 80km from Western Australia’s famous gold-mining town of Kalgoorlie.

The campaign that saw 191 samples taken from Cognac West follows an initial program that unveiled anomalous gold-in-soils. The discovery of two anomalous gold results reading more than 25 parts per billion during the initial campaign prompted the company to revisit the site to conduct the follow-up sampling.

Management says the results were even better this time around, with a sample peaking at 2.1 grams per tonne, or 2100 parts per billion, from the program designed to infill sections where insufficient sampling took place from the initial soils. It also aimed to extend the sampling to the east where it says the anomalous mineralisation remains open.

Further encouraging anomalies grading 490ppb and 220ppb were returned from the 3km-by-2km zone where samples were collected every 50m along 200m-spaced east-to-west lines. The company has engaged a contractor to undertake further infill sampling this month on samples every 25m along 100m-spaced lines.

Management notes that assays are expected shortly for rock-chip samples and geological mapping undertaken at Cognac West. It says the results from the prospective area will assist in defining drill targets for a future maiden drill campaign.

We are optimistic that these promising results, combined with our location adjacent to leading gold producers, emphasise the potential for major discoveries within our tenure. By consistently incorporating high-quality geological data into our analysis, we are building a robust foundation for future exploration and eagerly anticipate starting drilling activities on these targets in early 2025.

The company remains well-funded after its recent decision to sell 40 per cent of the lithium rights at the Widgiemooltha project to mining giant Mineral Resources as part of a joint venture (JV) agreement between the two firms.

Dynamic received $4 million from MinRes for the initial interest in the project’s lithium rights, with a further $1 million to be paid in July next year. MinRes can solely fund $15 million in exploration costs within four years to increase its stake in the JV to 65 per cent.

Management says it is applying a systematic and methodical approach to generating gold targets, based on gathering new data to give it a higher level of confidence in its targeting. It obtained 704 soil samples from its site and had them analysed for gold and a suite of multi-elements, with the encouraging anomalism returned from the assays.

Dynamic says the project has had near-surface historical exploration dating back to the 1970s, consisting of soil sampling and shallow drilling, with the data often incomplete and limited to gold assays only. An impressive peak result of 1m going 91.3g/t gold from 41m was received from the previous exploration efforts.

The company also has a JV with the GWR Group at their Prospect Ridge magnesium project in north-western Tasmania, with the partners aiming to launch into a scoping study at the site in the near term. The study for the project that sits 40km south-west of the town of Burnie, will use results from recent drilling and previous feasibility studies and will get financial assistance through the Federal Government-funded Regional Research Collaboration (RRC) program.

Prospect Ridge is 70 per cent-owned by GWR, with Dynamic holding the remaining 30 per cent stake. The project sits on a 51-square-kilometre exploration licence that features a pair of promising magnesite targets.

Magnesite is a magnesium mineral and is the source of about two-thirds of the world’s magnesium oxide. It is used in the production of synthetic rubber, in the preparation of magnesium chemicals and fertilisers and as a metal alloy to strengthen components used within the aircraft and automotive industries.

The gold price has been on a tear lately, with it touching all-time highs of US$2685 (AU$3982) last month. Widgiemooltha is better known in recent times for its nickel mined in the area, however, gold has played an important role in its history.

The biggest gold nugget ever discovered in WA came in 1931 at Larkinville, which sits in the nearby goldfields. The 32.2kg monster “Golden Eagle” nugget required two men to lift it properly and was unearthed by a 17-year-old, who encountered the rare find less than half a metre below surface while prospecting with his father.

A cast replica of the nugget sits in the WA School of Mines’ mineral museum in Kalgoorlie.

With massive discoveries such as the Golden Eagle found in the local region, Dynamic may have uncovered a prospect that could lead to something big.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au