Chalice hits more high grades at Julimar

Chalice Gold Mines has reported another high-grade extension at its Julimar nickel-copper-PGE project in Western Australia, sending its share price to a record high.

The Tim Goyder-chaired company has made a number of milestone announcements for its wholly owned Julimar project, situated 70 kilometres north of Perth.

Chalice is targeting a maiden resource estimate for the project's Gonneville intrusion mid-next year.

Results from an ongoing step-out and resource definition drilling program at Gonneville have revealed more high-grade mineralisation.

Hits include at 7 metres of 13.8  grams per tonne of palladium; 8 metres at 13.3g/t of platinum; 19 metres at 1.1g/t of gold;  17 metres at 1.8 per cent copper; and 11 metres at 0.06 per cent cobalt.

Further results are pending, Chalice says.

Managing director Alex Dorsch said the Gonneville intrusion continued to grow.

“Given the width and grade of the drill results we are continuing to see over a very large area, the scale of the Gonneville Intrusion itself, and the significant growth potential beyond the limits of the current resource drilling, it is clear that Julimar is emerging as a globally significant deposit of critical metals in WA,” Mr Dorsch said.

“We now have sufficient drill density at the southern end of the intrusion to define two entirely new zones, both of which have significant scale and include some of the highest PGE grades seen to date on this project.

“We have also recently intersected some of the widest, highest grade oxide mineralisation at this southern end of the intrusion.

“Given recent favourable leach testwork results, we believe this oxide zone could have a significant impact on project economics.”

Mr Dorsch said Chalice remained on track to meet its mid-2021 guidance for a maiden mineral resource for Gonneville.

The results come two days after Chalice said it would pay $15 million in cash and scrip for three properties near its Julimar project – with the founder and former managing director of Barminco, Peter Bartlett, reported to one of the property owners.

One of those properties covers about 85 per cent of the Gonneville intrusion.

Shares in Chalice reached $3.84 per share before dropping back to $3.75 at the end of trade – up nearly 14 per cent on yesterday’s close.