The Chalice Mining Ltd (ASX: CHN) share price jumped this morning after it released positive exploration results.
The Chalice share price rallied 2.7% to $8.63 when the S&P/ASX 200 Index (Index:^AXJO) added less than 0.1% at the time of writing.
While other ASX mining shares are outpacing the broader market with the BHP Group Ltd (ASX: BHP) share price and South32 Ltd (ASX: S32) share price gaining less than 1% each, Chalice was the standout.
Chalice share price jumps on potential big find
The market got excited about Chalice as it unveiled its ground gravity survey and soil sampling results at Julimar project.
The gravity data indicated the presence of a largely continuous gravity high extending over 26km. Management is hopeful that they have uncovered a substantial nickel (Ni) and copper (Cu) ore body.
“Several extensive Ni-Cu+/-Pd soil anomalies identified associated with gravity highs,” said the miner.
“And, in some cases, coincident with airborne EM anomalies at the Baudin, Jansz and new Drummond targets.”
Energised by nickel, copper and palladium
The positive data was reinforced by soil samples collected by Chalice. This was done by a first-pass screening technique to assess and prioritise targets.
“Numerous new low-level nickel and copper +/- palladium soil anomalies have been defined along the Complex, which are comparable to the initial anomalies delineated along an east-west traverse across Gonneville pre-discovery,” added Chalice.
“Background metal content in soils was approximately 25ppm nickel, 5ppm copper and <1ppb palladium across the entire dataset.
“Values above 80ppm nickel, 20ppm copper and 5ppb palladium are considered highly anomalous.”
Commodities supercycle adding to Chalice share price gains
This is a good time to be announcing big finds. Commodity prices have skyrocketed as the global trend towards electric vehicles and green tech will boost demand for copper and nickel.
The Chalice share price is likely to exit this financial year as the top performing ASX mining share on the ASX 200.
Top ASX 200 performers for FY21
Chalice has surged over 700% over the past year with the Pilbara Minerals Ltd (ASX: PLS) share price in second place with a circa 300% increase.
The Galaxy Resources Limited (ASX: GXY) share price is following close behind with similar a similar gain.
No doubt its proposed merger with fellow lithium miner Orocobre Limited (ASX: ORE) has given it a big boost.