Dynamic Metals has unveiled a series of promising results from its recent soil sampling program at the historic Cognac West prospect, part of the company’s expansive Widgiemooltha project located approximately 80 kilometers from Kalgoorlie in Western Australia. The latest findings, which include multiple high-grade gold anomalies, have set the stage for an aggressive drilling campaign, with the company preparing to deploy a reverse circulation (RC) drill rig early next year.
The results, derived from an extensive soil sampling campaign, have sparked excitement as they follow-up on previous high-grade rock chip samples, with grades reaching up to 2040 grams per tonne (g/t) of gold. This breakthrough has significantly advanced the company’s understanding of the prospect’s potential and is expected to play a key role in shaping Dynamic Metals’ upcoming exploration strategy.
Gold Anomalies Strengthen Case for Exploration
Dynamic Metals’ recent soil sampling program, which involved 755 samples collected across the Cognac West prospect, has yielded several promising gold anomalies. Notably, the company identified multiple zones with gold concentrations exceeding 100 parts per billion (ppb), providing further evidence of the area’s gold mineralization potential.
The targeted soil sampling covered a 3km by 2km zone, with three areas returning gold anomalies greater than 25ppb. Encouraging results from the program included elevated gold grades of 490ppb and 220ppb, underscoring the potential of Cognac West as a high-quality gold target. These findings have strengthened Dynamic’s resolve to advance its exploration efforts, with a commitment to drilling in the near future.
Additionally, the company conducted geological mapping and rock chip sampling across the area, which revealed even more remarkable results. Previous rock chip assays returned impressive grades, including a staggering 2040g/t of gold and 53.1g/t from earlier exploration. Other solid assay results, such as 8.95g/t, 5.91g/t, and 3.27g/t, have highlighted Cognac West’s strong prospectivity as a potential gold discovery site.
RC Drilling Campaign Set to Begin in 2025
With the latest data in hand, Dynamic Metals is preparing for its maiden RC drilling campaign at the Cognac West prospect. The company plans to bring in an RC drill rig early next year to further investigate the high-priority targets defined by the recent soil sampling program. These drilling efforts will build on previous geochemical and rock chip programs, designed to test the underlying mineralization at depth.
Dynamic’s exploration strategy at Cognac West is underpinned by a robust financial position, with the company holding more than $5 million in cash. This strong financial backing provides Dynamic with the necessary resources to push ahead with its drilling campaign and exploration activities.
The company’s initial soil sampling program involved the collection of 895 soil samples spaced every 50 meters along 200-meter spaced east-west lines. The results revealed three significant areas exhibiting gold anomalism, with gold concentrations exceeding 25ppb. In addition, higher-grade anomalies, including 490ppb and 220ppb, were found within the 3km by 2km sampled zone, further reinforcing the area’s potential for a major gold discovery.
The latest round of sampling involved tighter spacings of 25 meters by 100 meters and returned even higher-grade results, with several zones exceeding 100ppb. These encouraging results have set the stage for a focused drilling campaign that will target these high-priority areas.
Historical Exploration and High-Grade Gold Discoveries
The Cognac West prospect has a rich history of near-surface exploration dating back to the 1970s, with previous efforts focused primarily on soil sampling and shallow drilling. Although past exploration has generally concentrated on gold only, it has provided some exceptional results that point to the area’s gold-bearing potential.
Notably, previous exploration efforts at the prospect have returned an impressive peak result of 1 meter grading 91.3g/t of gold from a depth of 41 meters. This historical discovery further bolsters the case for future exploration and supports Dynamic Metals’ optimism about the potential for significant gold mineralization at Cognac West.
In addition to the high-grade results, earlier rock chip sampling returned stellar assays, including 2040g/t and 53.1g/t of gold, which have sparked renewed interest in the prospect. These historical results, combined with the recent soil sampling anomalies, have increased the likelihood of finding substantial gold mineralization at the site.
Proximity to Major Gold Operations and Historical Finds
Cognac West’s location is a major advantage, sitting close to several large gold mines in the region. The prospect is situated near Gold Fields’ St Ives operations, which include both underground and open-pit gold mines, as well as Westgold Resources’ Higginsville mine. These nearby operations have consistently demonstrated the region’s potential for high-grade gold deposits, making Cognac West an even more attractive target for Dynamic Metals.
The area is also home to one of Western Australia’s most famous gold finds. In 1931, the “Golden Eagle” nugget, the largest gold nugget ever discovered in the state, was found just a short distance from Cognac West. Weighing in at a remarkable 32.2 kilograms, the nugget required two men to lift it. The discovery of this rare and valuable nugget highlights the gold-rich nature of the region, further cementing the potential for significant gold discoveries in the area.
A cast replica of the Golden Eagle nugget now resides at the Western Australian School of Mines’ mineral museum in Kalgoorlie, serving as a testament to the area’s rich gold mining history.
Financial Strength and Strategic Partnerships
Dynamic Metals is well-positioned to fund its exploration efforts, with a cash balance of more than $5 million following a successful joint venture agreement with mining giant Mineral Resources (MinRes). As part of the JV, Dynamic agreed to sell 40 percent of the lithium rights at the Widgiemooltha project to MinRes. The agreement provided Dynamic with $4 million in upfront payments, with an additional $1 million to be paid in July 2025.
MinRes has committed to funding $15 million in exploration costs within the next four years, which could increase its stake in the JV to 65 percent. This strategic partnership has provided Dynamic with the financial backing necessary to pursue its exploration ambitions at Cognac West and other parts of the Widgiemooltha project.
Strong Market Conditions for Gold
Dynamic Metals is entering 2025 with a strong financial position, as well as favorable market conditions for gold. The price of gold has recently surged, reaching $2700 (A$4233) per ounce, a more than 30 percent increase over the course of the year. This increase in gold prices has created a favorable environment for gold exploration and mining companies, including Dynamic, which is now positioned to capitalize on this upward trend.
The combination of high-grade gold anomalies, a rich exploration history, strategic partnerships, and strong financial backing has placed Dynamic Metals in an optimal position to make a significant gold discovery at Cognac West in the near future.
Conclusion: Strategic Exploration at Cognac West
Dynamic Metals is making significant strides in its exploration efforts at the Cognac West prospect. With a promising series of soil anomalies, historical high-grade discoveries, and strong financial backing, the company is well-positioned for a successful drilling campaign in early 2025. As the gold price continues to soar, the timing could be ideal for Dynamic to unlock the full potential of its Widgiemooltha project and make a major gold discovery. The company’s strategic approach to exploration and its proximity to some of Western Australia’s most significant gold mines further solidifies the prospect’s potential for a substantial gold find.
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