Chalice Mining Ltd (ASX:CHN, OTCQB:CGMLF)’s Julimar Project strategy is to concurrently advance studies for an initial mining development at Gonneville on private farmland while continuing to define the full extent of mineralisation along the more than 26 kilometres-long Julimar Complex in WA.
At the step-out drilling at Gonneville, reverse circulation (RC) drilling is expected to be completed in the coming weeks.
The company anticipates its maiden mineral resource estimate will be released in mid-fourth quarter 2021.
Approval is expected in the coming weeks for the Final Conservation Management Plan submitted in early September for initial low-impact drilling with no vegetation clearance required at the Hartog-Baudin Targets following extensive consultation.
Chalice remains in a strong financial position with around A$81.3 million in cash as at September 30, 2021.
Activities at Julimar
The ongoing and planned activities at Julimar include:
- Geotechnical, metallurgical, hydrogeological and infrastructure drilling (Gonneville) – AC/RC/diamond drilling to support studies for Gonneville will commence once resource drilling is complete and will continue until the first quarter of 2022.
- Metallurgical test-work (Gonneville) – ongoing test-work is now focused on the optimisation of disseminated sulphide performance and continuing leach test-work on oxide composites. Investigation into bulk concentrate enrichment alternatives has commenced for the disseminated sulphide mineralisation as part of the recent $2.9 million grant from the Australian Government’s Co-operative Research Centre Projects (CRC-P) Program. Initial waste rock and tailings characterisation test-work continues.
- Studies (Gonneville) – Work is underway to support studies for the project, which will assess mining development scenarios for the Gonneville deposit. Scoping study for the initial stage of development at Gonneville is expected to be completed in the second quarter of 2022.
- Reconnaissance drilling at the Hartog-Baudin Targets within the Julimar State Forest – First-pass low-impact drilling utilising small track-mounted diamond rigs is planned to commence immediately once access and permitting approvals have been secured, which is expected in the coming weeks. A total of around 70 drill sites are planned with the ability to drill multiple angled holes at each site. No mechanised vegetation clearance is required to complete this first pass of drilling.
- Reconnaissance drilling at the Jansz-Torress Targets at the northern end of the Julimar Complex – First-pass AC drilling is planned on private farmland in the fourth quarter of 2021.
Pyramid Hill Gold Project
Planning is underway in preparation for the next round of exploration drilling at Pyramid Hill, which is expected to commence in the fourth quarter of 2021.
Future diamond and AC drilling programs are planned at the Karri, Ironbark, Banksia and Wandoo prospects.
Initial reconnaissance AC drilling is also planned over new targets on recently granted tenure.
Hawkstone Nickel-Copper-Cobalt Project
Diamond drill hole HD001 (225.6 metres) was completed during the quarter targeting a ground EM conductor associated with outcropping Ruins Dolerite.
Assays for the hole remain pending.
Barrabarra Nickel-Copper-PGE Project
First-pass AC drill testing of the Recherche soil geochemical anomaly and associated EM conductors, is expected to commence in November 2021.
A program of auger soil sampling is also planned to commence in November to test a series of aeromagnetic anomalies located along the western extension of the Recherche target.
South West Nickel-Copper-PGE Project
A ground EM program is planned to re-commence in late October 2021 targeting the Thor Prospect.
This program will utilise fixed-loop EM surveying due to the difficult nature of the terrain.
Any resultant bedrock conductors will be followed up with soil geochemistry to define potential drill-ready targets.
Auralia Nickel-Copper-PGE Project
An earn-in agreement was executed with SensOre Ltd, whereby SensOre may earn up to a 51% interest in the Auralia Project by spending $1.5 million within two years (Stage 1), which includes a minimum commitment of $0.5 million and drilling at least one 600 metres hole before being able to withdraw.
SensOre may earn an addition 19% (at Chalice’s election) by spending a further $3.5 million within two years from earning its Stage 1 interest.
Viking Gold Project
Chalice has commenced the transfer process of tenure, in preparation for the demerger and IPO of Falcon Metals.
The company continues to progress permitting approvals for initial RC drilling, which is expected to commence in late fourth quarter of 2021.