Dynamic Metals has received the green light to begin hammering into its promising Cognac West prospect in the West Australian goldfields, subject to it obtaining heritage clearance.
Previous gold-in-soil anomalies and an astonishing 2040 grams of gold per tonne rock chip sample were discovered in the company’s wider Widgiemooltha project, about 80 kilometres south of Kalgoorlie.
The Department of Energy, Mines, Industry Regulation and Safety approved the drilling, which aims to zero-in on targets identified from past soil sampling and rock chip exploration programs.
Dynamic has labelled two prime anomalous zones anomaly A and B, where multiple drill targets will be tested with the hard-edge of a drill bit.
An initial 75-hole reverse circulation drilling program is expected to be completed across several campaigns to follow-up on stunning exploration results, which included stellar chip samples grading up to 2040g/t gold, along with a trio comprising 53.1g/t, 8.95g/t and 5.91g/t gold.
A recent 755-soil sample program defined several zones greater than 100 parts per billion at the site, which will be targeted in the drill program.
Management says it is in a strong cash position to plunge the drill bit into its ground, with a cool $4.7 million sitting in the kitty at the end of December.
Dynamic’s initial soil program involved 895 soil samples, with a sample taken every 50m along 200m spaced east-west lines. Three areas exhibit gold anomalism of more than 25 parts per billion (ppb).
Further encouraging anomalies grading 490ppb and 220ppb were returned from the 3km by 2km zone sampled.
The promising soil results prompted the company to conduct geological mapping and rock chip sampling on the ground, where the super-impressive high-grade rock chip sample was found.
The project also saw historical near-surface soil sampling and shallow drilling exploration dating back to the 1970s. Assays were generally only completed for gold.
Limited drilling at the prospect returned an impressive peak slice of 1m grading 91.3g/t gold from 41m.
Management says it is applying a systematic and methodical approach to generating gold targets at Cognac West, based on compiling all the available data from its range of exploration pursuits. Dynamic believes this approach will provide it with a higher level of confidence in its drill targets.
The Cognac West project sits near several million-ounce gold mines such as Gold Fields’ St Ives underground and open-pit operations and Westgold Resources’ Higginsville mine. The biggest gold nugget ever discovered in WA was also found locally.
The 32.2-kilogram monster, known as the “Golden Eagle” nugget, was discovered in the nearby goldfields at Larkinville in 1931. It was unearthed by a 17-year-old boy 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.
Dynamic is in a strong cash position having last year sold 40 per cent of the lithium rights at its Widgiemooltha project to mining giant Mineral Resources (MinRes) as part of a joint venture agreement between the two firms.
Dynamic received $4m from MinRes for the initial interest in the project’s lithium rights, with a further $1m to be paid in July.
MinRes can solely fund $15m in exploration costs within four years to increase its stake in the joint venture to 65pc.
With the gold price continuing its amazing upward momentum, touching more than US$2850 (A$4560) per ounce earlier today, any junior goldie would be excited with a new drill program. It may just represent the start of something big for Dynamic.
Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au
https://thewest.com.au/business/bulls-n-bears/dynamic-launches-follow-up-drilling-into-high-grade-wa-gold-targets–c-17622178
