Chalice at high on new Julimar PGE results

CHALICE Gold Mines shares reached new heights after drilling dened a new platinum group element-copper-gold horizon at the Julimar discovery, northeast of Perth.

 

Step-out drilling over a 1.2km strike length at the eastern contact of the Gonneville Intrusion returned 33m at 2.1 grams per tonne palladium, 0.5gpt platinum, 0.2gpt gold, 0.2% nickel, 0.5% copper and 0.02% cobalt from 81m; 15m at 2.5gpt

palladium, 0.5gpt platinum, 0.2gpt gold, 0.3% nickel, 0.3% copper and 0.02% cobalt from 139m; and 13m at 2.3gpt palladium, 0.6gpt platinum, 0.2gpt gold, 0.2% nickel, 0.5% copper and 0.02% cobalt from 170m. This Eastern Contact position of the intrusion is 200-500m to the north-east, east and south-east of the previously identied high-grade G1-G4 Zones.

 

New results from Conductor F at the southern end of the intrusion included 33m at 2gpt palladium, 0.4gpt platinum, 0.5gpt gold, 0.3% nickel, 0.8% copper and 0.02% cobalt from 236m; 18.6m at 2.1gpt palladium, 0.8gpt platinum, 0.2% nickel, 0.1% copper and 0.02% cobalt from 240.4m; and 6m at 8.8gpt palladium, 0.2gpt platinum, 0.2% nickel, 0.1% copper and 0.02% cobalt from 196m.

 

All new mineralised zones remain open and further inll drilling is currently underway. Signicant high-grade PGE-nickel mineralisation was also conrmed in the G1-G2 Zones with new results including 45.1m at 2.9gpt palladium, 0.8gpt platinum, 0.4% nickel, 0.3% copper and 0.03% cobalt from 223.9m, including 11m at 4.8gpt palladium, 0.8gpt platinum, 0.8% nickel, 0.4% copper and 0.05% cobalt; and 8m at 5.1gpt palladium, 0.8gpt platinum, 0.3% nickel, 0.1% copper and 0.02% cobalt from 98m.

 

Four westerly dipping, stacked zones, G1, G2, G3 and G4, are now interpreted in this area, extending over about 550m of strike extent and up to roughly 340m of dip extent. The zones remain open along strike and down-dip. Chalice managing director Alex Dorsch said the Gonneville discovery continued to grow.

 

"The discovery of more extensive mineralisation  along the eastern contact and at Conductor ‘F' is another exciting step-change in our understanding of this large mineralised system, opening up an exciting new growth opportunity some 200-

500m from of the high-grade discovery area," he said. "In addition, assay results have conrmed a wide PGE-nickel intersection down-dip of the G2 Zone, which was originally interpreted as the G1 Zone but has now been re-interpreted based on new results.

 

"Our geological understanding of the high-grade zones continues to be improved as we start to inll in parallel to step-out drilling." Chalice is currently drilling an initial 800m hole into Conductor X. The diamond hole is currently at a depth of 690m and has successfully intersected the Gonneville Intrusion from 428m, some 800m to the north-west of the G1-G5

Zones, which conrms that the intrusion extends beyond the limits of the 1.6km by 800m magnetic anomaly.

 

The hole has intersected disseminated sulphide mineralisation from 631m to 646m, based on visual logging. "Interestingly, the Gonneville Intrusion appears to be much larger than originally envisaged with the magnetics and has signicant room to grow towards the northwest," Dorsch said.

 

"Evidence of sulphide mineralisation in the hole also further highlights the potential of the recently dened circa 6.5km-long Hartog EM anomaly directly north of Gonneville. Assays are pending for the Conductor X and another 32 completed drill holes. There are four rigs drilling at Julimar with a fth expected to arrive in the coming weeks.

 

 "We are on track to meet the mid-2021 guidance for a maiden mineral resource and continue to prioritise growth of high-grade mineralised zones," Dorsch said. Shares in Chalice are up 1150% since the start of the year and have doubled since the beginning of September. The stock closed at an all-time high of A$2.83 yesterday, valuing the company at $870 million. Shares hit an all-time intraday high of $2.92 and were trading at $2.82 this morning.

 

Macquarie analyst Hayden Bairstow lifted his price target for Chalice from $2.50 to $3.30. He only initiated on the stock at $1.80 on September 9.