Dynamic hits ASX with massive Kambalda-Norseman land position

Dynamic Metals hit the boards at the ASX today after spinning out of Jindalee Resources with a mass of tenements that stretch from Kambalda to Norseman in one of the richest mineral provinces in the country. Whilst the region is well known for its gold and nickel endowment, Dynamic already has one eye on the lithium potential of its tenements that wash through a region that already plays host to a number of serious lithium discoveries.

Post its successful $7 million IPO, Dynamic will focus on three key projects starting with Widgiemooltha that covers around 880 square kilometres in the revered Kambalda-Norseman region, an area that has produced more than 1.6 million tonnes of nickel since the 1960s – and one that is now being reinvented as a rolled gold lithium address.

Dynamic’s former parent company, Jindalee Resources, discovered the McDermott project in the USA which is shaping as potentially one of the largest lithium deposits in America. However, despite what appears to be the discovery of a tier-one global lithium asset, Jindalee also held a portfolio of prospective Australian exploration assets which it says needed a more dedicated focus.

Enter Dynamic Metals helmed by former Jindalee Chief Executive Officer Karen Wellman who takes on the dual roles of Managing Director and CEO.

Dynamic’s Widgiemooltha tenements are adjacent to a number of successful nickel operations including the recently developed Cassini deposit. Looking to the future, the company has already highlighted two potential nickel drill targets at its Dordie Far West and Sunday Soak prospects.

The asset already appears to show promise with historical drilling confirming multiple disseminated nickel sulphide hits as far back as 2007 at Dordie Far West. Highlights include 2m at 1.9 per cent nickel from 26m in addition to 16m going 1.1 per cent nickel from 20m. A smaller 0.2m hit returned a whopping 10.7 per cent nickel, 3.1 per cent copper and traces of cobalt from 45m. Sunday Soak recorded bottom-of-hole drill results of around 0.4 per cent nickel from drilling in 1997 and remains open along strike to the north and the south.

In addition to the nickel potential of Widgiemooltha, Dynamic believes the site is also prospective for gold – perhaps not surprising considering the site’s location in the Goldfields. The tenements are in good company with major gold operations St Ives, Higginsville and the Chalice gold operation also in the region. Historic gold results at the site include 6m at 2.7 grams per tonne gold from 18m, 6m going 1.1 g/t gold from 48m and a 3m hit recording an impressive 8.64 g/t gold from 38m.

Dynamic has all approvals in place to begin drilling at Dordie Far West and Sunday Soak and is expected to begin its maiden drill campaign early this year.

Whilst the company will focus its early exploration on nickel and gold at Widgiemooltha, Dynamic has been buoyed by the site’s lithium potential after identifying pegmatite outcrops. The region is regarded as an emerging lithium hotspot and the operation is located within 25km of the Mt Marion, Bald Hill and Buldania lithium projects. ASX-listed Widgie Nickel recently announced the discovery of lithium in rock chip samples at its nearby Faraday prospect with results showing grades of 3.7 per cent, 3.6 per cent and 3.1 per cent lithium oxide.

Dynamic says its Widgiemooltha project has seen virtually no lithium exploration and the company has identified mapping and rock chip sampling as a priority.

The explorer also holds high hopes for its Lake Percy project in the Goldfields region of WA. Located around 60km east of the Mt Holland lithium project, Lake Percy covers an area of about 200 square kilometres and sits along the Lake Johnston Greenstone Belt.

Dynamic says it has identified spodumene-bearing pegmatites around 20km south of the site’s Mt Day prospect in addition to anomalous lithium intersected in historic drilling. The site has previously been explored for nickel by companies including Anaconda, LionOre and White Cliff Minerals whilst Liontown has also done some lithium exploration in the area.

Notably, historic assay results include a significant 16m hit going 1.5 per cent nickel from 18m in addition to a 6m section at a solid 1.7 per cent nickel. Dynamic’s exploration program for nickel and lithium at Lake Percy has already highlighted eight potential targets from historical data and geophysics. The company expects to begin a phase 1 and 2 AC drilling campaign during the second quarter of the calendar year. Previous gold exploration around Lake Percy focused on regional sampling that highlighted a number of promising gold anomalies.

Dynamic has plenty of work to do chasing up a range of high-priority targets with plenty of interesting historic hits that are begging for modern-day follow-up. The company has also highlighted the potential of its Deep Well project which it describes as a “wild card” in the pack.

The site was pegged in 2020 and sits around 35km south-east of Meekatharra in the Mid West region of WA. Deep Well has seen minimal previous exploration with a focus only on gold. Early reconnaissance work in the area has identified eight outcropping gossans that appear anomalous for nickel, copper, gold and platinum group elements. Whilst the company is yet to secure all exploration approvals for the site, it hopes to begin a phase 1 AC program in the 2024 financial year.

In addition to its portfolio of prospective projects, Dynamic also boasts a solid board with Wellman bringing more than 20 years experience as a Geologist and prior knowledge of the project suite courtesy of her previous role t Jindalee. Her previous roles include senior positions at Silver Lake Resources and Doray Minerals before her stint as the CEO of Jindalee.

Wellman has secured the services of experienced geologist Tanh Doan who has been credited with a number of significant nickel discoveries including the Cassini discovery near Dynamic’s Widgiemooltha project. Doan brings over 33 years of exploration experience as a geologist including 17 years working with heavyweights like WMC and BHP.

Jindalee – and now Dynamic- has somehow managed to piece together a massive land package in the Kambalda-Norseman region that others could only hope to replicate.

The region is seriously well endowed with minerals and even a cursory glance at its tenement map instantly shows Dynamic’s extraordinary land position in this most lucrative of regions.

The spin-out from US-focused Jindalee makes a lot of sense and it is game on now for the cashed-up Dynamic who is spoilt for choice and well-placed to give this impressive tenement package the love that Jindalee could not.

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