Chalice Gold Mines’ Share Price Continues Upwards on Julimar Update
The share price of junior gold explorer Chalice Gold Mines Ltd [ASX:CHN] has continued its push higher today thanks to impressive extensions at its Julimar Project in WA.
The Julimar Project has delivered significant uplift to the CHN share price this year, when we last visited the explorer shares spiked 9.62% thanks to the discovery of new mineralised zones.
CHN shares have also been quick to recover from the brief dip in the gold price, already climbing ~39% since its low in October.
At time of writing, the Chalice Gold Mines share price is up 13.03% or 43 cents to trade at $3.73 per share, setting a new 52-week high.
Julimar gets fresh extensions
There are currently five drill rigs operating at Julimar and they’ve been making short work of defining the contained resource.
CHN’s latest results continue to intersect the broad, high-grade zones of mineralisation that we’ve become accustom to.
- 50m at 1.8g/t palladium (Pd), 0.5g/t platinum (Pt), 0.9g/t gold (Au), 0.2% nickel (Ni), 1.1% copper (Cu), 0.02% cobalt (Co) from 112m,
- Including 17m at 2.5g/t Pd, 0.8g/t Pt, 2.0g/t Au, 0.2% Ni, 1.8% Cu from 134m
- 7m at 13.8g/t Pd, 0.3g/t Pt, 0.5g/t Au, 0.2% Ni, 0.2% Cu, 0.02% Co from 83m
- 8m at 2.2g/t Pd, 13.3g/t Pt, 0.1g/t Au, 0.1% Ni, 0.1% Cu, 0.01% Co from 225m
- 19m at 3.1g/t Pd, 0.7g/t Pt, 1.1g/t Au, 0.2% Ni, 0.8% Cu, 0.02% Co from 67m
Though the results are pleasing, what might have investors excited today is the prospect of significant growth ahead.
Chalice Managing Director, Alex Dorsch, said:
‘Given the width and grade of the drill results we are continuing to see over a very large area, the scale of the Gonneville Intrusion itself, and the significant growth potential beyond the limits of the current resource drilling, it is clear that Julimar is emerging as a globally significant deposit of critical metals in Western Australia.
‘…the first deep hole into EM Conductor “X”, approximately 800m north-west of the G4 Zone, has improved our geological understanding of the intrusion and delivered a proof-of-concept for the growth potential of the footwall contact zone (G4).’
For reference, the initial drill hole into EM Conductor ‘X’ is located 800 metres north west of the G4 Zone (see the figure below).
Source: Chalice Gold Mines
This hole intersected a ~500-metre-wide interval of mafic-ultramafic rock types with broad PGE zones.
Basically, the geology is looking similar to the G4 Zone, meaning there is potential for further expansion.
Maiden resource in 2021
CHN said they are on track to deliver their maiden resource estimate by mid-2021 having already completed 143 drill holes at the site.
The explorer is also fully funded to complete its drilling program and metallurgical testwork.
So, if you were hoping to get in on their next potential capital rise you might be out of luck.
With the gold price now holding steady after trailing off at the end of September, we could see stocks like Chalice Gold Mines lift further this month. 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