Drilling Begins at Chalice South: Can Dynamic Metals Unlock New Gold Resources?

Drilling Commences at a Proven Gold Corridor

Dynamic Metals Limited (ASX, DYM) has kicked off a 13-hole Reverse Circulation (RC) drilling campaign at its Chalice South gold prospect, part of the Widgiemooltha Project in Western Australia. This program aims to test gold anomalies that were identified through sophisticated 3D modelling of historical exploration data, marking a significant step in the company’s exploration efforts.

The Chalice South prospect lies along a highly prospective mineralised corridor immediately south of the Chalice Gold Mine, now owned by Westgold Resources (ASX, WGX). This corridor has a rich history of gold production, with the Chalice open pit alone having yielded over half a million ounces of gold in the late 1990s. Dynamic’s exploration licence covers 14 kilometres of greenstone stratigraphy within this same structural trend, offering promising ground for new discoveries.

Leveraging Historical Data with Modern Techniques

Dynamic Metals has focused on integrating extensive historical drilling data with modern geological modelling techniques to refine and prioritise drill targets. The company constructed a 3D geological model that helped identify five priority targets for immediate testing. The current drilling program, consisting of 13 holes, is designed to evaluate these targets and is on track for completion within the September quarter.

Managing Director Karen Wellman highlighted the strategic importance of this program, noting that Chalice South represents an exciting opportunity to explore a proven gold-bearing structural trend. By combining modern technology with a rich historical dataset, Dynamic aims to unlock new value in an area with demonstrated gold mineralisation.

Context and Future Prospects

The Widgiemooltha region, where Chalice South is located, has been a prolific gold and nickel province since the late 19th century. Dynamic Metals’ tenure in this area places it adjacent to multiple established gold camps and producers, supported by key infrastructure. The company’s broader portfolio also includes exploration projects targeting lithium, nickel, copper, and other critical minerals, positioning it well within the evolving resource landscape.

While assay results from the current drilling program are still pending, the commencement of drilling itself is a pivotal milestone. Success here could lead to resource upgrades and potentially extend the life of the mineralised corridor, which has already proven its economic viability through past production.