Desert Metal's 3rd largest shareholder Fathom Geophysics has identified a new type of deposit at Belele, a VMS deposit.
This type of deposit differs from the Intrusive Style Ni-Cu-PGE sulphide deposits that have been drilled to date, as well as the 6 extremely high Siemens Ni-Cu-PGE intrusive conductors at Dingo Pass, that will also be drilled shortly.
I have been doing some research on VMS (Volcagenic Massive Sulphide) or VHMS (Volcagenic Hosted Massive Sulphide). Exactly the same thing, just a different name.
A good comparison is Sandfire's Doolgunna VMS province. This includes its legendary Degrussa copper mine (BTW the Degrussa deposit was drilled out and the underground mine built by Desert Metals' 2nd largest shareholder Brian Rodan when he owned ACM)
We saw the share price performance of Sandfire once the discovery hole was made and subsequent drill out (by Brian Rodan's ACM team) over the following 12-18 months to SFR's share price. 4.5c to $8.
The nature of VMS deposits is that the massive sulphide zones containing copper/zinc/lead/gold can be much thicker/wider than Intrusives, hence easier to discover with drilling.
We are very fortunate that Fathom Geophysics has identified the VMS style deposit target at Belele for drilling, in addition to the 6 extreme high conductance conductors at Dingo Pass to drill very soon.
The VMS target at Belele, where the conductivities returned a distance of 500-600metres wide by 220metres deep, which if you compare that to the image above, are the massive sulphide areas (pink/purple areas at surface and orange areas beneath).
The total size of Belele is much larger, but they will be targeting the high value $$$ massive sulphide zones.
In addition to Innouendy and Irrida Hille, we only need 1 of these extremely high 12,000S Siemens Conductors at Dingo Pass or the VMS at Belele, to return high-grade nickel copper PGE or gold and we will see all time highs in the share price...let alone a closing of the gap with CHN's $2.5Billion market cap.
Chalice's $2.5Billion market cap is 142x higher DM1's current $17.5million mkt cap.
DM1 Price at posting:
37.0¢ Sentiment: Buy Disclosure: Held
