Chalice juggernaut rolls on

Chalice Mining’s share price continues to rally to new highs as analysts speculate over the size of its Julimar discovery outside Perth (reports MiningNews).
30th April 2021
Resources Rising Stars

Chalice Mining’s share price continues to rally to new highs as analysts speculate over the size of its Julimar discovery outside Perth (reports MiningNews).

Chalice said last week that it was delaying its hotly anticipated maiden resource from mid-year until the end of the third quarter because the deposit just keeps getting bigger.

The company reported 165 high-grade intersections from the seven-rig drill-out of the Gonneville Intrusion, which is now about 1.8km long by 900m wide.

Its share price has been on a tear ever since, rising from A$6.05 to a record intraday high of $7.58 yesterday.

The rise has also coincided with a record high for palladium of just over US$2952 an ounce overnignt.

Macquarie says last week's results has driven material increases in the size and scale of its mining inventory and development scenario.

Analyst Hayden Bairstow now estimates a mining inventory of 90 million tonnes at 1.8 grams per tonne palladium, 0.5gpt platinum, 0.1gpt gold, 0.24% nickel, 0.28% copper and 0.02% cobalt, lifting the amount of contained metal by 64% for palladium, 38% for platinum, 26% for gold, 75% for nickel, 53% for copper and 92% for cobalt.

That figure is based on an estimated resource of 69.2Mt at 2.5% palladium, 0.64% platinum, 0.17gpt gold, 0.34% nickel, 0.41% copper and 0.03% cobalt for 11 high-grade zones, based only on drilling results released to date.

Chalice is awaiting assays for a further 94 holes as drilling continues.

Macquarie now estimates a larger scale open pit, assuming an 8Mt per annum operation at a cost of $500 million.

Mine life is estimated at 12 years, previously eight, while palladium production forecasts have risen by 8% to 340,000oz per annum.

And both Chalice and Macquarie see the potential for Julimar to get bigger, based on the Hartog anomaly, a Gonneville lookalike.

The 6.5km-long, 1.2km-wide anomaly, directly to the north of Gonneville, is yet to be drilled as it sits within the Julimar State Forest.

Chalice hopes to get approval to drill it later this year, which Macquarie says will represent a major catalyst.

Macquarie boosted its price target for Chalice by 67% to A$9.20.

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