Dynamic Metals Ltd (ASX:DYM) is encouraged by nickel exploration progress at its Widgiemooltha and Lake Percy projects in Western Australia’s Goldfields region with the new D5 prospect described as an “exciting drill target”.
At Lake Percy, the company is in the advanced stages of planning a phase 2 RC drill campaign which it expects to begin by the end of the year.
At Widgiemooltha, Dynamic completed nine RC drill holes at the D3 and D5 prospects in the first quarter. The targets were based on the Kambalda komatiite nickel sulphide ore deposit model with the programs planned to test the potential for fresh rock nickel sulphide mineralisation associated with the ‘basal contact’ at the two prospects.
Dynamic explains that in the context of exploring for Kambalda komatiite-type massive sulphide nickel deposits, the basal contact position is a key vectoring tool and is best described as the location where the komatiite stratigraphy is in contact with the underlying basalt. It interpreted the position of the basal contact at D3 and D5 by integrating field observations, aeromagnetic interpretation and surface geochemistry.
Widgiemooltha D5 prospect
The company says the D5 prospect is an “exciting drill target” with thick, uninterrupted ultramafic unit indicative of a channel unit confirmed.
The potential for nickel mineralisation at D5 was established from historic drilling that included a 20-metre intercept at 0.54% nickel.
More recently, drilling by Mincor Resources (now Wyloo Metals) along strike to the south at the Patriot Prospect confirmed the fertility of the ultramafic with 2 metres at 0.67% nickel from 107 metres, 13 metres at 0.64% nickel from 19 metres and 16 metres at 0.4% from 49 metres.
Dynamic notes that the magnetic signature at its D5 prospect is much stronger than at Patriot.
The company drilled six angled RC holes oriented to the west on five sections to test a 1.3-kilometre strike of the interpreted basal contact, which was confirmed in the two northernmost sections.
In each of these holes, the contact is observed to lack interflow sediments and is overlain by a thick, interflow sediment-free ultramafic unit of around 40 metres.
This absence of interflow sediments at the basal contact is important, as it indicates a channel environment, which is a critical component in localising nickel mineralisation in the well-established Kambalda komatiite nickel sulphide ore deposit model.
Drilling to date has been on sections between 200 and 400 metres apart and is considered broadly spaced given the typical size of potential trough structures, of around 150 metres wide, that host nickel sulphide mineralisation.
The company has used the geological and geochemical information to update the geological model at D5 and inform the next phase of drilling.
As the drill holes to the south did not intersect the basal contact, extending these drill holes is a priority for the Phase 2 drilling program to further constrain the basal contact and understand its properties.
By employing this phased approach the company says it can efficiently and iteratively test this highly prospective nickel sulphide prospect.
D3 nickel prospect
Dynamic drilled three holes for 354 metres at the D3 prospect, but the observed geology did not correspond with Dynamic’s geological interpretations.
No basal contact was intercepted so the decision was made to abandon the planned three remaining holes and the company has no further drilling planned here.