Why Chalice Mining shares are off to the races today

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Why Chalice Mining shares are off to the races today

Rising shares of Chalice
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Highlights

  • Chalice Mining has released its maiden mineral resource estimate for the Gonneville deposit located at Western Australia's Julimar Project.
  • The miner outlined a 330Mt resource at 0.94g platinum, palladium, and gold (3E), 0.1% copper, 0.16% nickel, and 0.16% cobalt.
  • The company plans to commence metallurgical, hydrogeological, geotechnical, and infrastructure exploration work during the initial quarter of next year.

Shares of Australia-based gold miner Chalice Mining Limited (ASX:CHN) surged magnificently for the second day in a row after the company announced an update on its fully owned Julimar Nickel-Copper-Platinum Group Element (PGE) Project.

CHN shares shot up 6.8% to trade at AU$9.29 (as noted at 11:56 AM AEDT on 10 November 2021) with a market capitalisation of AU$3.07 billion.

Why Chalice Mining shares are off to the races today?

Yesterday, the miner announced its maiden mineral resource estimate for the Gonneville deposit located at Western Australia's Julimar Project. CHN believes it has defined a tier-1 scale, a pit-constrained maiden resource for Gonneville, which contains sulphide, oxide, and transitional mineralisation.

The diversified miner stated that the deposit also contains copper, nickel, gold, cobalt, nickel, and platinum group elements (PGE) and is already the largest nickel sulphide discovery in the last 20 years. The miner also claims that it is the largest PGE discovery in the history of Australia.

Also Read: Chalice (ASX:CHN) confirms gold spin-out into Falcon Metals

CHN’s robust mineral resource estimate

Chalice has outlined a 330Mt resource at 0.94g platinum, palladium and gold (3E), 0.1% copper, 0.16% nickel and 0.16% cobalt.

Mining activity

Source: © Gavinp101 | Megapixl.com

Collectively, Gonneville contains 10Moz of 3E, 330,000 tonnes of copper, 530,000 tonnes of nickel, and 53,000 tonnes of cobalt. Furthermore, the company stated that roughly 150Mt or nearly 45% of the mineral resource lies in the indicated category.

Must Read: ASX flat in muted trade; Chalice Mining, PointsBet rise; NAB down 2%

What next for Chalice?

With the completion of the maiden Gonneville resource estimation, the company wants to conduct studies at the site. Chalice plans to conduct subsequent diamond and RC infill drilling to improve the confidence in the inferred resource areas, which are less than 200m deep.

Following the completion of the drilling activity, the company plans to commence metallurgical, hydrogeological, geotechnical, and infrastructure exploration work during the initial quarter of next year.

Meanwhile, the miner also plans to advance on metallurgical work and support studies. The scoping study has been scheduled for the second quarter of 2022.

Must Read: 5 ASX gold stocks to watch out for as gold trades above $1800/oz

Bottom Line

Chalice Mining shares spiked after the company released a maiden mineral resource estimate for its Western Australia-located Gonneville deposit at its Julimar Project.

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