Dynamic Metals listed on the ASX two weeks ago. It’s now drilling for nickel in WA

Jindalee Resources’ (ASX:JRL) spin-off company Dynamic Metals (ASX:DYM) is set to commence drilling for nickel, lithium and gold in WA. 

Jindalee created Dynamic to handle all of its Australian assets. 

The company only listed on the ASX two weeks ago and currently remains above its float price. The company revealed it had mobilised a rig to its Widgiemooltha Lithium-Nickel Project (WLNP) on Tuesday. 

The maiden drill run will use a Reverse Circulation (RC) drill rig which collects rock chips in a drill chamber from underground and typically allows for depths up to 300m. 

No dawdle to Dordie

The five hole exploration campaign will kick off this week at the Dordie Far West (DFW) nickel target, part of the larger WLNP. 

Dynamic has good reason to be excited. As far back as the early 2000's, Mincor Resources (ASX:MCR) hit anomalous nickel results in its drilling campaign. 

Investor information provider Undervalued Equity classifies high-grade nickel as that in concentrations over 2%. 

Compare that to the following DFW historical intercepts plugged by Mincor:

• 08m @ 1.3% nickel from 26m depth 

• 02m @ 1.7% nickel from 12m depth 

• 02m @ 1.99% nickel from 26m depth 

• 02m @ 1.4% nickel from 28m depth 

• 04m @ 1.4% nickel from 36m depth 

Depth is important in drilling results because it ultimately determines whether or not a mine can feasibly be done as an open-pit, or whether an underground mine would be needed. 

It’s still early days, but one observation to make is that relatively shallow middle-upper-grade nickel mineralisation (with the nearest known sample to surface being 12m deep) could offset concerns about quality, if it’s easier to access with a lower-cost open pit mine. 

Lake Percy

The company is also conducting a simultaneous drill run at its unrelated Lake Percy project, where the company will also search for nickel sulphide mineralisation. 

Nickel sulphides are the preferred style of mineralisation when compared to laterites for inclusion into Electric Vehicle (EV) battery supply chains.  

An Air Core (AC) drill will be used, which is similar to an RC rig, but cheaper, while typically not able to run as deep. 

The company also flagged its intentions to drill at the third Deep Well project in 2H 2023. 

The shape of Dynamic's charts since listing