Dynamic Metals Ltd (ASX:DYM) forged ahead with key exploration initiatives during the September quarter, with its focus trained on the Widgiemooltha and Lindsays projects during the reporting period.
Dynamic Metals remains well-funded, rounding out September with A$5.3 million in cash to advance its lithium and gold exploration in Western Australia.
Free to pursue gold at Widgiemooltha
During the quarter, Dynamic Metals finalised its lithium-focused joint venture with Mineral Resources Ltd (ASX:MIN) on the Widgiemooltha Project, having satisfied all conditions under the agreement.
Dynamic retains a 60% interest in the project, while MinRes holds a 40% stake. MinRes has the option to increase its interest to 80% by sole funding additional exploration expenditure of up to A$15 million over the next four years.
The joint venture, which covers lithium mineral rights only, leaves Dynamic free to pursue the project’s gold potential, and exploration efforts have intensified in this area.
Two priority gold targets have been identified at the Cognac West and Chalice South prospects, with promising early results.
At Cognac West, a soil sampling program over an area spanning 3 kilometres by 2 kilometres resulted in the definition of two significant gold anomalies.
Following up on these results, Dynamic conducted additional sampling after the quarter ended, collecting 191 soil samples.
These samples returned high-grade results, with peak assays reaching 2.1g/t gold and confirming a third anomaly at the site.
The company is continuing geological mapping and rock chip sampling in the area and expects assay results from the latest batch by late October 2024.
The next step for Cognac West involves compiling all field data to determine priority targets for drilling, with the company aiming to commence a reverse circulation drill program in early 2025.
At the Chalice South prospect, near the historical Chalice Gold Mine, Dynamic is undertaking 3D modelling using historic drill data and surface geochemistry.
This area, which shares structural similarities with the nearby Chalice gold deposit, is believed to have significant gold potential.
Dynamic’s plans for Chalice South include further geological understanding to generate drill targets for future exploration.
Gold targets defined at Lindsays
Meanwhile, at the Lindsays Project, some 60 kilometres northeast of Kalgoorlie, Dynamic conducted a comprehensive review of historical exploration data and completed detailed desktop studies, resulting in the identification of multiple targets for both gold and lithium exploration.
The company picked out 36 gold targets, 18 of which were selected as priorities for field reconnaissance.
The gold targets are clustered around structural and geochemical anomalies identified through a detailed analysis of surface and downhole geochemistry, structural interpretation and historical drill data.
Initial fieldwork is set to begin in the coming quarter, focusing on mapping and surface sampling to refine these targets for potential drill testing in early 2025.
Additionally, Dynamic identified 22 lithium targets at the Lindsays Project, of which five have been prioritised for further investigation.
These lithium targets were identified through the analysis of historical multielement assays conducted by Northern Star Resources Ltd (ASX:NST), which had previously explored the area for gold.
The presence of tantalum, caesium and niobium anomalies in conjunction with lithium suggests the potential for LCT (lithium-caesium-tantalum) pegmatites in the northern portion of the project area.
Fieldwork to assess these lithium targets will be undertaken alongside the gold exploration in the next quarter.
Broader portfolio
In addition to its focus on Widgiemooltha and Lindsays, the company continues to assess opportunities across its broader portfolio, including the Lake Percy and Deep Well projects.
These two projects remain strategically important. Lake Percy, 120 kilometres west of Norseman, lies within the northern extension of the Lake Johnston Greenstone Belt, home to key nickel and lithium discoveries.
The Deep Well Project, a joint venture with M61 Holdings near Meekatharra, covers prospective greenstone geology with potential for both nickel and gold.