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Chalice Mining (ASX:CHN) extends sulphide zones north of Gonneville, WA

ASX 200, ASX News, Materials
ASX:CHN      MCAP $441.4M
23 November 2022 13:00 (AEST)

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Drilling at Chalice Mining’s (CHN) Julimar project has extended the high-grade sulphide zones at the northern end of the Gonneville deposit in the area.

The company said this drilling highlighted the potential for “material” resource growth at the WA-based project, with several “outstanding” new intersections up to 650 metres beyond the existing resource area.

New assay results include 157.5 metres at 1.7 grams per tonne (g/t) 3E (palladium, platinum and gold), 0.2 per cent nickel, 0.1 per cent copper and 0.02 per cent cobalt — equating to 0.8 per cent nickel equivalent — from 328 metres, including 48 metres at 1.7 per cent nickel equivalent from 391 metres.

The company also reported a higher-grade intercept of eight metres at 1.8 per cent nickel equivalent from 683 metres.

Chalice said these results pointed towards “significant” near-term growth potential in the high-grade portion of the current resource area and a potential deepening of the resource pit shell at the northern end.

The company plans to conduct follow-up step-out drilling in the northern part of the Gonneville deposit, with two rigs onsite.

Gonneville’s mineral resource estimate was updated in July and stands at 350 million tonnes at 0.96 g/t 3E, 0.16 per cent nickel, 0.1 per cent copper and 0.015 per cent cobalt.

Company shares were up 6.45 per cent to trade at $4.95 at 12:53 pm AEDT.

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