Chalice Mining Ltd (ASX:CHN) (OTCQB:CGMLF) continues to expand the footprint of its Julimar PGE-nickel-copper discovery near Perth, Western Australia, with strong new results from ongoing exploration seeing shares increase again this morning.
Seven rigs, three reverse circulation (RC) and four diamond, are continuing a 160,000-metre step-out and resource definition drill program at the large Gonneville intrusion, with more than 87,000 metres completed to date and a large number of assays outstanding.
The G4 and G11 high-grade zones have been found to extend to the northeast while infill drilling continues to demonstrate the large-scale resource potential of the Gonneville deposit.
Shares have jumped more than 6.5% in early trade to A$6.56 while the company’s market cap sits at approximately A$2.127 billion.
“World-class potential”
Chalice managing director Alex Dorsch said the company continued to be impressed by the consistent, high-grade results coming from the ground beneath its feet.
“Even after 87,000 metres over more than 13 months of continuous drilling, we continue to expand the footprint of our major Julimar discovery; a quite remarkable result that demonstrates the potential world-class nature of the discovery,” he said.
“The new intersections at the northeast extension of Gonneville are promising, as the previously identified discrete pods of high-grade mineralisation appear to be associated with a newly identified pyroxenite host unit.”
Drill highlights
There have been 165 new high-grade drill intersections reported, with assays pending for a further 94 completed drill holes.
Among the highlight results are:
- 13.4 metres at 6.3 g/t palladium (Pd), 1.1 g/t platinum (Pt), 1.3% nickel (Ni), 0.7% copper (Cu) and 0.07% cobalt (Co) from 405.7 metres;
- 13 metres at 4.7 g/t Pd, 1.0 g/t Pt, 0.4 g/t gold (Au), 0.2% Ni, 2.2% Cu and 0.02% Co from 144 metres;
- 12 metres at 2.6 g/t Pd, 1.4 g/t Pt, 0.8 g/t Au, 0.2% Ni, 0.9% Cu and 0.01% Co from 138 metres;
- 45 metres at 1.7 g/t Pd, 0.6 g/t Pt, 0.2 g/t Au, 0.1% Ni, 0.1% Cu and 0.01% Co from 216 metres;
- 29 metres at 1.4 g/t Pd, 0.5 g/t Pt, 0.1 g/t Au, 0.2% Ni, 0.1% Cu and 0.02% Co from 115 metres;
- 23 metres at 1.7 g/t Pd, 0.4 g/t Pt, 0.2 g/t Au, 0.2% Ni, 0.2% Cu and 0.01% Co from 177 metres;
- 17 metres at 1.5 g/t Pd, 0.2 g/t Pt, 0.3 g/t Au, 0.2% Ni, 0.4% Cu and 0.02% Co from 207 metres; and
- 5 metres at 2.5 g/t Pd, 0.9 g/t Pt, 0.1 g/t Au, 0.2% Ni, 0.2% Cu and 0.02% Co from 67 metres.
High-grade zones expanded
Drilling has expanded the G4-G11 high-grade zones to the northeast and the G1-G2 zones down-dip, while infill drilling continues to confirm the current geological interpretation:
- G4: >1,250 metres of strike length x up to 600 metres of dip extent, open north along strike and down-dip;
- G5: >650 metres of strike length x up to 270 metres of dip extent, open north along strike;
- G6: >875 metres of strike length x up to 450 metres of dip extent, open north along strike and down-dip;
- G9: >500 metres of strike length x up to 250 metres of dip extent, open along strike and down-dip; and
- G11: >1,200 metres of strike length x up to 300 metres of dip extent, open north along strike and down-dip.
Next steps
With the growth in the mineralised footprint, the quantum of resource drilling required to define the discovery is expected to increase and a maiden mineral resource estimate is now anticipated in late Q3 2021.
Recent land purchases mean that the resource drill-out can proceed without access constraints.
Reconnaissance exploration and environmental surveys in the Julimar State Forest are continuing with initial drilling targeted for the September quarter, subject to access approvals.
Chalice has also appointed a study manager for the project and continues to build its internal management and technical capabilities.
- Daniel Paproth