Why the Chalice Mining (ASX:CHN) share price is surging 6% on Tuesday

Chalice Mining has a “globally significant discovery” in its hands.

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It was a flat open for the Chalice Mining Ltd (ASX: CHN) share price on Tuesday, up just 0.42% to $7.19 at the morning bell.

However, buying activity has picked up momentum, with shares in the exploration company currently trading 6.77% higher at $7.65.

What’s been driving the Chalice Mining share price?

Another high grade discovery

On Monday, Chalice announced its 12th high-grade zone from step-out drilling discovery at its Julimar Nickel-Copper-Platinum Group Element (PGE) project.

Chalice has been undergoing an extensive drilling program at Julimar since March 2020, where significant headway has been made in growing its PGE resource.

The company believes a maiden mineral resource estimate is on track for completion in Q4 2021.

The Chalice Mining share price opened 3.16% higher to $7.52 on the morning of the announcement but struggled to hold onto gains, closing 1.51% lower at $7.16.

Julimar – “a remarkable new discovery”

Chalice released its Diggers and Dealers Mining Forum 2021 presentation on Tuesday, bringing to our attention the “globally significant discovery” that is Julimar.

The presentation describes the project with multiple prospects including high grade nickel, copper, platinum, cobalt and gold.

Chalice believes its significant discoveries can position the company as an emerging “world-class, strategic deposit of critical, ‘green metals’ in a world-class jurisdiction” that is “highly leveraged to battery and hydrogen technology adoption”.

Many ASX shares in the resources sector have benefited from the tailwinds behind the renewable sector including major economies making firm commitments to target net-zero emissions and the rise in electric vehicles.

This has witnessed triple digit returns for ASX 200 lithium heavyweights including Pilbara Minerals Ltd (ASX: PLS) and Galaxy Resources Limited (ASX: GXY).

Large mining giants BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) have also opted for different paths to supply materials such as lithium, green hydrogen and potash to address the issue of climate change and decarbonisation.

Should you invest $1,000 in Chalice Mining right now?

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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. 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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