Chalice Gold Mines share price soars 40% in August and 508% in 2020

Australian gold and mineral explorer Chalice Gold Mines' shares are up 40% so far in August and up a smashing 508% in 2020.

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The Chalice Gold Mines Limited (ASX: CHN) share price has gained 40% so far in August. That puts Chalice's share price gain at a whopping 508% since 2 January.

By comparison the All Ordinaries Index (ASX: XAO) has gained 3.4% in August and is down 8.0% for the calendar year.

Though trading at a premium compared to today's share price, Chalice Gold wasn't immune to the COVID-19 selloff that gripped the ASX. Chalice's share price tumbled 47% from 24 February to 16 March. Investors lucky enough to have snapped up shares on the low would be sitting on gains of 806% today.

Not bad.

Chalice Gold has a current market cap of $461million. It next reports earnings on 22 September.

What does Chalice Gold Mines do?

Chalice is an Australian gold and mineral exploration company based in Perth, Western Australia. The company has a portfolio of large, precious and base metal projects in premier locations across Australia.

Chalice holds the 100%-owned Pyramid Hill Gold Project in Victoria's under-explored northern Bendigo gold district of Victoria. But Chalice is after more than gold. The company also is exploring for nickel at its King Leopold Nickel Project in the frontier Kimberley region of Western Australia.

As at July 2020, Chalice had a cash and investment balance of $54 million. Chalice listed on the ASX in 2006.

Why did the Chalice share price skyrocket 508% in 2020 and 40% in August?

Chalice's share price surge began in March. But it had little to do with the wider market bounce from the viral selloff and everything to do with its new mineral discoveries.

In early March, Chalice announced that it had struck new gold targets at its Pyramid Hills project in Victoria.

And the good news has kept rolling in for Chalice shareholders since.

On Monday this week (17 August) Chalice released an announcement to the ASX, reporting " significant extension of high-grade PGE-Ni-Cu-Co zones at Julimar".

Chalice Managing Director, Alex Dorsch noted: "This is an exciting step-change in our ongoing exploration program at Julimar in that the new results highlight the potential for material growth in the high-grade zones we have identified to date."

Though sliding in early afternoon trading today, Chalice share price is up 6.5% since the announcement.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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