- Chalice Mining (CHN) commits to the second stage of a joint venture (JV) agreement for Venture Minerals’ (VMS) South West project in WA
- Chalice secured a 51 per cent stake last month after meeting the expenditure requirement which funded geochemistry work that identified two nickel-copper-PGE targets
- In the second stage, CHN is required to spend a further $2.5 million on exploration to gain an additional 19 per cent stake for a total 70 per cent interest
- Venture Minerals says the decision to proceed to the next stage is a “strong endorsement of its South West project
- VMS shares are down 3.57 per cent to trade at 2.7 cents while CHN is trading 1.18 per cent in the red at $4.63 per share at 12:57 pm AEST
Venture Minerals’ (VMS) earn-in partner Chalice Mining (CHN) is committing to the second stage of a joint venture (JV) agreement for the South West project in WA.
Through a deal signed with Venture Minerals in 2020, Chalice is earning up to a 70 per cent interest in the South West project by funding exploration.
Chalice Mining earned a majority 51 per cent stake in the project last month after funding geochemistry work and a drilling program.
The soil geochemistry program identified two nickel, copper and platinum group element (PGE) target areas which are coincident with magnetic highs at the Thor anomaly within the project.
These findings reportedly prompted Chalice to proceed to the second stage of the JV which involves spending a further $2.5 million on exploration over the next two years. This will grant the company an additional 19 per cent stake, taking its total interest in Venture’s South West project to 70 per cent.
Once the second stage of the earn-in is completed, Venture can choose to either contribute 30 per cent or dilute to at least a 10 per cent JV interest, in which case the interest would revert to a 1.25 per cent net smelter return royalty.
VMS Managing Director Andrew Radonjic said Chalice’s decision to proceed to the next stage is a “strong endorsement of the South West project.
“The newly identified nickel-copper-PGE targets associated with interpreted ultramafic rocks and coincidental with magnetic and airborne electromagnetic (EM) highs, opens up the untapped potential of the northern part of the 20-kilometre long Thor target,” he said.
“This, along with the recent recognition of a parallel unexplored ultramafic unit, suggests nickel exploration on this project is still at its infancy and the second stage expenditure of $2.5 million should go a long way towards unlocking the project’s potential.”
Looking ahead, Chalice will fund a follow-up program of EM and infill geochemical sampling to prepare targets for potential drill testing.
VMS shares were down 3.57 per cent to trade at 2.7 cents while CHN was trading 1.18 per cent in the red at $4.63 per share at 12:57 pm AEST.