The share price for Chalice Gold Mines Ltd [ASX:CHN] are up 100% today at time of writing. The CHN share price increased from $0.16 on Monday, 16 March to $0.32, after a trading halt.
Chalice is an Australian exploration company. Their Pyramid Hill Gold Project, is a 100% owned high grade project in the Bendigo gold district in Victoria.
While their main focus is gold, they also have the King Leopold Nickel Project, and a nickel-copper-palladium sulphide project — Julimar — both in Western Australia.
Why is the CHN share price up today?
The company announced the discovery of high-grade nickel-copper-palladium sulphide at Julimar.
Julimar is 100% owned project located about 70km north east of Perth with direct access to highway, rail, power and port infrastructure. Julimar has never been explored for nickel or copper before.
According to the company’s announcement, the results from the first drill hole at Julimar resulted in 19 metres at 2.59% nickel, 1.04% copper, 8.37g/t palladium and 1.11 g/t platinum from 48 metres in fresh rock, including a massive sulphide zone of 13 meters at 3.15% nickel, 1.19% copper, 8.85 g/t palladium and 1.09 g/t platinum.
There was also a matrix/stringer sulphide zone of six meters at 1.39% nickel, 0.72% copper, 7.33 grams per tonne palladium and 1.16 grams per ton platinum.
Commenting on the discovery, Chalice’s Managing Director, Alex Dorsch, said:
‘Given the rarity and value of nickel sulphide discoveries, particularly in WA, and the recent all-time high palladium price of more than US$2,800/oz, the result is especially significant.
The lack of nickel-copper-PGE exploration on the surrounding intrusive complex, within an hour’s drive of Perth and close to established infrastructure, is quite extraordinary.
While we are obviously still at a very early stage of exploration at Julimar, the discovery of a shallow high-grade massive sulphide zone within a large layered ultramafic-mafic intrusion is very exciting, as it draws potential parallels with other large-scale nickel-copper-PGE sulphide discoveries worldwide.’
The company is currently planning more drilling.
What could happen next for Chalice Gold Mines Ltd?
Chalice’s strategy is to find opportunities, add value through discovery and then sell them off.
As of the 23 March, the company has returned $36 million to shareholders and hasn’t raised capital since 2011.
The company could be well placed to take advantage of the surge in palladium price.
While palladium has seen a 15% drop in price since the beginning of the year, the price is still over 50% higher than in 2018.
And also gold…
Since the beginning of the year, gold has had a 20% price increase in Australian dollars.
But while gold prices are trending higher, it’s not easy to know which explorers will hit gold. It’s why The Rum Rebellion’s editor Greg Canavan has prepared a guide for you.