Dundas says its Jumbuck nickel geology mirrors those underpinning IGO’s Nova nickel mine

Tue 02 Aug 22, 12:02pm (AEST)
In-situ nickel mineralisation
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Key Points

  • New geophysical survey data from Dundas’ Jumbuck nickel project in South WA confirms magnetic qualities similar to IGO’s Nova acreage
  • IGO posted record sales revenues from Nova on higher nickel prices in the June quarter (6,509Mt nickel produced)
  • Two key Jumbuck targets, Central and Matilda South, to see drilling in October 2022

Dundas Minerals’ (ASX:DUN) investors have seen gains in morning trade as the company reveals its Jumbuck nickel project boasts similar geological traits to that of IGO’s (ASX:IGO) Nova nickel mine to the north. 

Dundas Minerals’ shares have jumped 3.7% to 14c. 

Part of this gain is likely due to IGO’s most recent quarterly performance, which saw it unlock record nickel sale revenues from its WA Nova operations. 

Stronger nickel prices and high output were partially responsible, even as real prices fell short of IGO’s original guidance. 

As for Dundas, the company is preparing to launch fresh drilling runs at its two priority prospects within Jumbuck later this year in October. 

Up to four drillholes will be sunk at both targets in Q4 of the calendar year, called Matilda South and Central respectively. 

Any uncertainty surrounding the end design of drill plans is lessened at the Matilda South prospect, with the WA government providing $180,000 for drilling support as part of a supply chain initiative. 

Existing assay results support new geophys data 

Back in May, assays at Jumbuck confirmed the presence of nickel, as well as chromium. 

While further nickel assay results at Jumbuck may not be available until late this year or early next year (depending on how WA’s ongoing geophys laboratory backlog plays out), it’s clear the company is confident in reporting thick and high-grade hits.

Also worth noting is Dundas’ increasing focus on rare earth elements (REEs).

Evidence builds Dundas eyeing tech metals 

On top of the assay results identifying nickel and chromium, the company also noted elevated REE values were present in three drill holes executed in the February drilling program.

Its separate gold project at Kokoda, meanwhile, is currently being transitioned into an REE pure play. 

With more producers pivoting nickel operations towards the battery metals market (BloombergNEF notes nickel demand will only increase for the next decade at least,) the inclusion of REE assets suggests a further foray into tech metals.

Dundas Minerals' three month charts show it is one of few microcap explorers able to quickly shake off the broad market glut of June-July 2022
Dundas Minerals' three month charts show it is one of few microcap explorers able to quickly shake off the broad market glut of June-July 2022
Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Dundas Minerals 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.


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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. Email Jon at [email protected]

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