Here’s why the Chalice (ASX:CHN) share price is gaining today

Today Chalice Mining released exciting news of its Julimar Project.

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The Chalice Mining Ltd (ASX: CHN) share price is in the green following news of the company’s Julimar Project.

Chalice announced today it’s found a new high-grade zone at Julimar. That leaves the nickel, copper, and platinum group elements mine with 12 high-grade zones. Additionally, the company has expanded some previously identified high-grade zones at the mine.

Right now, the Chalice share price is 1.24% higher than its previous close, with shares in the company swapping hands for $7.36 apiece.

However, earlier today they reached $7.75, representing a 6.6% gain.

Let’s take a closer look at today’s news from Chalice.

New and extended high-grade zones

News of a new high-grade zone at Julimar’s Gonneville Intrusions’ north-western hanging wall has sent the Chalice share price soaring today.

Chalice’s new high-grade zone returned assay results including:

  • 10 metres at 1.7 grams of palladium per ton, 0.6 grams of platinum per ton, 0.1 grams of gold per ton, 0.2% nickel, 0.1% copper, and 0.02% cobalt from 93 metres.

The company also reported that its G8 and G9 high-grade zones have been significantly extended.

Also potentially driving the Chalice share price today are assay results from 81 new drill holes at Julimar. They included:

  •  283 mineralised intervals (more than 4 metres width and more than 0.3 grams of palladium per ton cut-off grade). 
  • 205 high-grade palladium +/- platinum-gold-nickel-copper-cobalt metal intervals (more than 2 metres width and more than 1 gram of palladium per ton cut-off grade), including:
    • 63 high-grade palladium-nickel-copper +/- platinum-gold-cobalt intervals (more than 2 metres width, more than 1 gram of palladium per ton and more than 0.5% nickel+copper cut-off grade).

Finally, the company has found Julimar’s G5 zone merges with its G2 zone. Step out drilling also closed off the G7 and G10 high-grade zones.

Commentary from management

Chalice’s managing director Alex Dorsch commented on the news driving the Chalice share price, saying:

The fact that we are still discovering new high-grade zones and identifying significant extensions in step-out drilling so far into the resource drill-out is testament to the exceptional scale and quality of the Gonneville deposit…

Our resource drill-out is continuing at pace, with assays currently pending for 116 holes. We remain on track to deliver our maiden Mineral Resource Estimate next quarter, providing a strong foundation for preliminary economic studies, which are also advancing in parallel.

Chalice Mining share price snapshot

Today’s gains have added to the Chalice share price’s recent strong performance.

Shares in Chalice are currently trading for 88% more than they were at the start of 2021. They have also gained 606% since this time last year.

The company has a market capitalisation of around $2.5 billion, with approximately 346 million shares outstanding.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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