Dalaroo hits lead-zinc at its Browns Prospect, early maiden success for base metals target

Dalaroo Metals (ASX:DAL) has today announced fresh hits of lead and zinc on-site the WA Lyons Project in the Gascoyne region, ultimately a base metals play with the potential for lithium, gold and nickel also being explored. 

Lead and zinc mineralisation are typically coincident with silver mineralisation, and traces of silver were also present in the latest results.  

On top of this, one drillhole also intersected low-grade nickel at Browns; the company says it will need to conduct further work to understand the likelihood of nickel potential. 

While Dalaroo is not reporting any copper or gold in its assay results today, the company notes the presence of lead-zinc provides early stage evidence further base metal deposits are likely located on-site. 

Maiden drilling for Browns, but not the whole project 

Drilling has already been carried out at the company’s Four Corners prospect, which stands alongside the Browns target as the two base metal plays. 

The company is hopeful it can secure a geophys contractor before 2023 to carry out a number of downhole surveys at the Browns target to allow for a better idea of what the company may be dealing with. 

This drilling at Browns reflects the company’s maiden drill run for the prospect, with only the northern end targeted. To the northeast and southeast, the target remains untested and open. 

Follow up target identified 

“We are encouraged by the prospectivity at Browns and by the evidence that lead-zinc-silver mineralising fluids have circulated at the basin-wide scale five kilometres east from our already drilled Four Corners prospect,” Dalaroo Metals MD Harhinder Kehal said. 

“The Browns south sub-basin is considered a high priority follow-up target for drill testing as it vectors towards high-grade lead-zinc-silver deposits.”

No shortage of work ahead 

Browns was originally identified in a seismic survey; a further survey will be carried out. While today’s drilling confirms mineralisation present across at least 800m of strike length, Dalaroo suspects the total strike area may extend to 2.5km. 

Meanwhile, the company’s Goodbody target reflects a pure play gold prospect, with rockchips containing high-grade gold previously logged on-site. Worth noting is that surface mineralisation in rockchips can often be higher-grade than that which is found further underground, if present at all. 

The company will move ahead to aircore drilling at Goodbody once relevant approvals are acquired; what approvals exactly are needed were not disclosed by the company today.

A surface look at performance 

Dalaroo Metals is one of the lesser known microcaps on the ASX, exemplified by its ranking in the materials sector: 884 of 912 constituents. 

Dalaroo boasts a market capitalisation of $3.1m; shares are worth 10.5c. 

At the end of the June quarter, Dalaroo Metals held $2.6m in cash. It spend $0.53m over the period. 

As for shareholders: 

• One week returns up 5% 

• One month returns up 6% 

• One year returns down -47% 

• Year to date returns down -25% 

Dalaroo's six month charts reflect a fairly illiquid equity suffering in a risk-off macro environment