Major Extension Sends Chalice Gold Mines’ Share Price Up (ASX:CHN)
The Chalice Gold Mines Ltd’s [ASX:CHN] share price is trading higher today upon the discovery of a possible major extension at its Julimar Project in WA.
At time of writing the CHN share price is higher by 25 cents or 14% to trade at $2 per share.
The CHN share price had a shaky start to September.
When we last analysed the share price, CHN was down due to some questionable metallurgy results.
However, the past two weeks have seen shares reclaim the losses suffered earlier in the month.
Big scale up for Julimar Project
CHN entered a trading halt on Friday last week, returning to regular trading with the announcement of a 6.5km extension at the Julimar Nickel-Copper-Platinum Group Elements Project.
Source: Chalice Gold Mines
Today’s results come from CHN’s recent airborne electromagnetic (AEM) survey.
According to Chalice, the survey has outlined three new extensive anomalies within the Julimar State Forest — Hartog, Baudin and Jansz, which you can see in the figure above.
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Basically, today’s AEM results confirm Chalice’s suspicion; that the area north of the recent Gonneville discovery is highly prospective.
Commenting on the results, Managing Director Alex Dorsch said:
‘We have now supported that claim [that the northern area is highly prospective] with major new, laterally extensive geophysical targets from the first airborne EM survey over the Company’s granted tenure, which is a very exciting and important development.’
If you’re a little confused what these results mean, this is what you need to know:
AEM’s survey is like a large metal detector that detects natural variations in the electrical properties of soil and rocks.
These properties are then interpreted by geologists to identify geological features.
What does this mean for Julimar’s potential?
The magnitude to which the mineralisation identified today extends to the north could offer significant potential for a large project.
CHN also said that non-magnetic mafic rock-types have been identified in drilling at Gonneville and therefore may occur elsewhere in the district.
Meaning that less magnetic areas within the complex may also be highly prospective.
Mr Dorsch further commented:
‘It is important to emphasise though that our experience at Gonneville to date has shown that some high-grade mineralised zones do not necessarily have a strong EM response using either airborne or ground-based techniques. Therefore, the absence of a strong latetime airborne EM response does not preclude the presence of mineralisation elsewhere within the Julimar Complex.’
Chalice is currently liaising with relevant governing bodies regarding the development of a Conservation Management Plan (CMP) for non-ground disturbing, reconnaissance exploration activities within the Julimar State Forest.
As the gold price continues to heat up CHN could be a stock to watch, particularly as it develops its other gold project. Our resident gold expert Shae Russell reckons other Aussie gold stocks could be set to spike too as Australia becomes the next ‘gold epicentre’. If you want to learn more, download your free report here.
For The Daily Reckoning Australia