Chalice Mining Ltd (ASX:CHN) (OTCQB:CGMLF) has defined new highly prospective electromagnetic (EM) conductors and nickel-copper soil anomalies at Hartog target directly along strike from the Gonneville PGE-nickel-copper-cobalt-gold discovery at the Julimar Project.
Highly encouraging new results have been returned from ongoing regional reconnaissance exploration activities at the 100%-owned Julimar Nickel-Copper-Platinum Group Element (PGE) Project, 70 kilometres northeast of Perth in WA.
These results highlight strong potential to deliver further growth at Julimar directly along strike to the north, where the company has a major resource drill-out underway.
Chalice is fully funded to continue its reconnaissance program along the around 26-kilometre-long Julimar Complex, in parallel with the ongoing seven-rig resource drill-out and early-stage mining studies at Gonneville.
Delivered exciting results
Chalice managing director Alex Dorsch said: “Initial reconnaissance exploration activities along the around 26 kilometres-long Julimar Complex to the north of our Gonneville discovery have delivered exciting results, with a significant number of EM-soil targets already defined at the highest priority Hartog Target.
“The identification of discrete EM conductors together with extensive nickel-copper soil anomalies highlights the significant potential of this area to deliver further growth at Julimar directly along strike to the north of where we have a major resource drill-out underway.
Encouraged by similar early results at Hartog
“Soil sampling and ground EM at Gonneville guided us to the initial discovery and we are very encouraged to see similar early results at Hartog.
“We are also pleased that our first regional field exploration program has validated the results generated by the airborne EM survey flown last year, which is a positive sign for our ongoing exploration of the broader district.
Stepped up drilling at Gonneville
“Meanwhile, we have stepped up drilling activities again at Gonneville, with seven rigs now drilling prioritising definition and expansion of high-grade mineralised zones.
Initial resource and pit-shell modelling is also being undertaken concurrently, which is guiding our drill pattern.”
Potentially significant nickel-copper-PGE targets
The survey over Hartog has defined a cluster of 29 low to moderate conductance, mid to late-time bedrock EM conductors, interpreted to be potentially significant nickel-copper-PGE targets, of similar aerial extent and range of conductance to those at the Gonneville discovery immediately to the south.
Most of the MLEM conductors occur within an around 6.5 kilometres long, 1-2 kilometres wide corridor that extends directly north from Gonneville, although four conductors are located to the north and north-east of the main corridor and appear to define a new trend.
Soil sampling at Hartog has outlined extensive areas of moderately anomalous nickel, copper and/or palladium, both coincident with and proximal to the new MLEM conductors and similar to the results generated over Gonneville prior to its discovery.
A strong and coherent chrome anomaly (>700ppm Cr) has also been identified central to the nickel, copper and palladium soil anomalies, and is interpreted to indicate that prospective ultramafic (pyroxenite) geology extends north from Gonneville through Hartog.
Forward plan
Based on the results of the initial MLEM survey, additional surveying is underway to expand and infill geophysical coverage to about 200 metres spaced lines across the Hartog Target.
This program aims to define drill-ready targets and is anticipated to be completed by mid-April.
First-pass surface soil sampling is also underway to the north of Hartog, along the remainder of the around 26 kilometres-long Julimar Complex, including the Baudin and Jansz AEM targets, where historical rock-chip and stream sediment sampling identified nickel, copper and palladium anomalism.
Once drill targets are finalised, a second approval will be sought from the relevant State Government departments to allow first-pass drill testing, anticipated to occur in the third quarter this year.
Concurrently, seven rigs - three reverse circulation and four diamond - are continuing the around 160,000 metres step-out and resource definition drill program at the Gonneville Intrusion.