The Chalice Gold Mines Limited (ASX: CHN) share price has been a very strong performer on Wednesday.
In morning trade the gold exploration company's shares are up a sizeable 16% to $3.82.
Why is the Chalice Gold share price charging higher?
Investors have been buying the company's shares this morning after it reported significant new results from ongoing exploration activities at its Julimar Nickel-Copper-Platinum Group Element (PGE) Project in Western Australia.
According to the release, five rigs are continuing a step-out and resource definition drill program at the Gonneville Intrusion, where Chalice recently made a major high-grade discovery.
A total of 27 diamond drill holes and 116 RC drill holes have been completed to date at the project, of which assay results for 18 diamond and 80 RC holes have now been reported. Assay results are pending for a further 45 completed drill holes.
What are the new results?
Chalice's Managing Director, Alex Dorsch, revealed that its new results have been very strong and are pointing to significant growth opportunities.
He said: "The Gonneville PGE-Ni-Cu-Co-Au discovery continues to grow on multiple fronts, with another round of exceptional drill results extending the known high-grade zones, defining new zones and further reinforcing the numerous growth opportunities across the Project."
"Given the width and grade of the drill results we are continuing to see over a very large area, the scale of the Gonneville Intrusion itself, and the significant growth potential beyond the limits of the current resource drilling, it is clear that Julimar is emerging as a globally significant deposit of critical metals in Western Australia," he added.
What next?
With five rigs drilling, Chalice is on track to meet the mid-2021 guidance for a maiden Mineral Resource for Gonneville. It will also continue to prioritise the growth of the high-grade mineralised zones with step-out drilling.
Mr Dorsch commented: "Given that this very strong EM anomaly sits just 1.5km north of the very wide mineralised intercepts encountered in JD018, it's not hard to see why we are so excited about the district-scale potential at Julimar. This is a large, multi-faceted mineralised complex which continues to surprise on the upside."
