Dundas logs promising soil assays at Central, believes gold mineralisation is present at depth

Mon 31 Oct 22, 11:56am (AEST)
A road stretching to the horizon in the Australian outback beneath a blue sky
Source: Unsplash

Key Points

  • Dundas Minerals has posted geochemical soil assay results from samples collected in late September
  • The presence of pyrite and sulphur from 17m onwards is noted alongside trace detections of copper, gold, silver, nickel, and cobalt
  • Dundas interprets results as supporting evidence gold mineralisation is present at depth

Dundas Minerals’ (ASX:DUN) has sniffed out trace fractions of gold, copper, nickel, cobalt, and silver, in results turned over to the company by an assay lab handling soil samples it collected in late September

The company’s share price is up 4.17% in the first hour of trade as it notes its expectation gold mineralisation is present underground at depth. Predictions on how deep that might be are not included in today’s publication. 

Also present in soil samples was high readings for sulphur, extracted from a drillhole which also intersected pyrite mineralisation, which can be coincident with copper-gold mineralisation. 

While the assay results do not immediately detect commercial-ready concentrations of target minerals, the evidence does all come together to paint an early-stage picture justifying further exploration. 

What did Dundas find in September? 

The original fieldwork announcement Dundas posted in late September saw Dundas Minerals’ share price surge when it reported it had encountered massive sulphides downhole in three shallow holes originally drilling for water. 

Dundas Minerals shares rose over 40% in response to a then all-time-high of 30c. 

Roughly a fortnight later, on October 11, the Dundas share price was at $1.15. Today, it is back around 40c.

"The completely unexpected intersection of ultramafic massive sulphides ... prior to commencing the holes targeting the two AMT anomalies, is an extremely positive early result," Dundas MInerals Managing Director Shane Volk said at the time. 

"The cobalt, copper, nickel and silver pXRF readings are very encouraging. We are moving as quickly as possible to test both Central AMT anomalies with diamond drill holes to depths of up to 500m," added Volk.

Note on pXRF readings

Readings detected in the pXRF run are the subject of brief discussion in today’s announcement, with Dundas clarifying what did and didn’t carry across. 

“Pleasingly, assay values returned for copper and nickel are much higher than the maximum pXRF readings previously reported for these elements,” the company notes.

“Assay values for silver are lower than readings, [but] of significance are gold assays which pXRF does not test for.” 

“Cobalt assay values are lower, which was previously discussed.” 

Dundas's three month charts
Dundas's three month charts
Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Dundas was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.


Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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