Former ASX darling Chalice has rallied over 40% in one month after investors picked up cheap shares in the last couple of days after the company released an update on drilling activities at the 100%-owned Julimar NiCu-PGE Project in Western Australia.
According to the release, drilling activities at the greenfield Hooley Prospect, ~5km north of the current Gonneville Resource, has intersected a significant PGE-nickel-copper-cobalt-gold mineralisation in initial drilling.
Management advised that sulphide mineralisation has been intersected in all five reconnaissance holes from three drill sites over ~1.8km of strike length. Assays are pending for a further nine holes and downhole electromagnetics are currently underway, after which a more definitive interpretation can be made regarding the scale and significance of the newly discovered mineralisation.
And while it notes that the geology and mineralisation at Hooley is quite variable, the high-grade mineralisation encountered so far in initial reconnaissance drilling is considered highly encouraging and highlights the prospectivity of this section of the Julimar Complex.
The company advised that exploration will continue along the Complex targeting extensions to known mineralised zones as well as potential new shallow high-grade zones.
It is also notes that it is possible that different styles of mineralisation (or higher-grade mineralisation) could be intersected along the complex, potentially contributing to the significant long-term value-creation that a world-class mineral district can create.