Chalice Gold Mines’ shares were up more than 80 per cent today after releasing drilling results this morning while Mandrake Resources had big gains yesterday after announcing a farm-in deal with Andean Energy Resources on adjacent ground.
Chalice Gold Mines’ shares were up more than 80 per cent today after releasing drilling results this morning while Mandrake Resources had big gains yesterday after announcing a farm-in deal with Andean Energy Resources on adjacent ground.
After opening at 56 cents, Chalice Gold Mines' shares surged to reach $1.05 each at 1:30pm AWST.
The increase comes as Chalice Gold Mines lifted its trading halt this morning after announcing a significant discovery at its Julimar Nickel-Copper-Palladium project, about 70kms north-east of Perth in Western Australia.
Reverse circulation drilling found a significant wide, shallow, high-grade palladium-nickel-copper zone about 60m east of the discovery hole.
Chalice Gold Mines managing director Alex Dorsch said activities at Julimar had ramped up significantly since it had made the discovery and new results confirmed that the company appeared to have a large palladium-nickel discovery.
“We have defined what appears to be a new parallel high-grade Pd-Ni-Cu [palladium-nickel-copper] zone to the east of the discovery intercept that remains wide open and appears to have significant strike potential,” Mr Dorsch said.
“In addition, assays received to date have confirmed that all of our drill holes have intersected significant broad zones of palladium- a surprising result that highlights the metal-rich nature of the intrusive and its potential to deliver a discovery of considerable scale."
Mr Dorsch said while palladium intervals pointed to a large scale platinum discovery, the company’s focus remained on defining high-grade zones of mineralisation.
Yesterday, Mandrake Resources entered an agreement with Andean Energy Resources to farm-in to the Jimperding Project, which is located 30km east of Chalice Gold Mines' discovery.
Mandrake Resources shares increased from 1 cents per share to close at 2.3 cents per share yesterday, once its trading halt had been lifted.
At 1:30pm AWST, Mandrake Resources share price was at 2 cents each.
Once approved, Mandrake will undertake field assessments to validate work completed to date as well as further ground-based investigations and geophysical work across the 140 square metre Jimperding Project.
A statement from the company said it had $3.6 million in cash as at December 31, 2019 and was well-funded to undertake the work.
The terms of the farm-in include an upfront payment of $40,000 in cash, Mandrake to expend $100,000 and earn a 51 per cent interest on the exploration licence application and to expend a further $200,000 to earn a further 29 per cent interest on the application.
