Chalice Gold Mines has eyed a maiden resource estimate mid-next year for its Julimar nickel-copper-PGE project, while also revealing significant exploration results.
Chalice Gold Mines has eyed a maiden resource estimate mid-next year for its Julimar nickel-copper-PGE project in Western Australia, while also revealing significant exploration results.
The company’s shares were up nearly 11 per cent on the news, trading at $2.87 at 10:30am AEDT.
Its Julimar project lies about 70 kilometres north-east of Perth, in the West Yilgarn Province.
Chalice is continuing a step-out and resource definition drill program at Julimar’s Gonneville intrusion, where the company made a high-grade PGE-nickel-copper-cobalt discovery in March.
A third reverse circulation drill rig is expected to arrive in the coming weeks.
A total of 19 diamond drill holes and 88 RC drill holes have been completed to date at the project.
Recent RC drilling, testing the eastern margin of the Gonneville intrusion, intersected wide intervals of dispersed sulphides over a strike length of about 1.2km, Chalice said.
Managing director Alex Dorsch said at least five high-grade zones around the discovery area had been identified.
Hits include: six metres at 8.8 grams per tonne of palladium; 10.6m at 3.7g/t palladium and 1.2g/t platinum; 11m at 4.8g/t palladium and 0.8 per cent nickel and 0.5 per cent cobalt; and 33m at 0.5g/t gold and 0.8 per cent copper.
“The Gonneville PGE-nickel-copper-cobalt-gold discovery continues to grow and recent drilling has delivered exciting new target horizons,” Mr Dorsch said.
“The discovery of more extensive mineralisation along the eastern contact and at Conductor ‘F’ is another exciting step-change in our understanding of this large mineralised system.
“Our geological understanding of the high-grade zones continues to be improved as we start to infill in parallel to step-out drilling.”
He said Chalice was on track to announce a maiden resource estimate for the Julimar project in mid-2021.
Chalice says it has generated $110 million from asset sales and returned $36 million to shareholders to date.
The company has about $54 million in cash and investments.
Its shares closed up 9 per cent to trade at $2.83 each.