Chalice Gold Mining has continued its bumper year, with the mining explorer extending gains on its share price which has seen it scale all-time highs over $8 in May, from just 20 cents, 14 months ago.
With 3 major operations in Australia including the Julimar Nickel-Copper-PGE Project, Pyramid Hill Gold Project, and Hawkstone Nickel-Copper-Cobalt Project. Chalice is also involved in a number of joint ventures and has three up-and-coming mining targets, all based in Australia.
As we reported back in December, the announcement of the 6.5-kilometre electromagnetic anomaly at the Julimar project in September propelled the stock's share price. Since then, the company has had several announcements regarding the mine, which has extended the rally.
In April, the company announced it had found 165 new, high-grade mineralised areas, each with at least 1 gram of palladium per tonne, at the project. It also purchased 4 properties in the area to expand the project.
Chalice has attempted to temper investor expectations after it responded to a Mining News article, at the end of April titled “Chalice Juggernaut Rolls On”, which referred to an uncommissioned research report issued by Macquarie Securities. Chalice advised that it did not endorse the forward-looking statements made in the article specifically in regards to optimistic valuation estimates for Chalice’s shares; the potential “mining inventory” for the Julimar project; and estimates of production forecasts, and costs for the project.
While there has been no market-sensitive news in May, it appears the price of gold has also helped maintain investor enthusiasm for the junior miner.
Growing interest in the exploration hot spot
The Chalice discovery at Julimar has generated a flurry of interest in several junior explorers looking to capitalise on tenements in the area. Impact Minerals (ASX:IPT) holds the 850sq km Arkun nickel-copper-PGE-gold project between York and Corrigin in WA, which lies on belt trending south from Yawawindah and Julimar. Another Julimar-related explorer is DevEx Resources (ASX:DEV) with its Sovereign nickel-copper PGE project. AusQuest (ASX:AQD) has acquired tenements where it is targeting magnetic signatures similar to those at Julimar. Liontown Resources (ASX:LTR) has its Moora project 95km north of Julimar where it says geochemistry work indicates gold-PGE-nickel-copper anomalies similar to those found on Chalice’s ground. The company has identified two large anomalisms.