The Chalice Mining Ltd (ASX: CHN) share price is falling with the market on Friday.
In afternoon trade, the mineral exploration company's shares are down 3% to $7.47.
Is the Chalice Mining share price in the buy zone?
One leading broker that is likely to see the weakness in the Chalice Mining share price as a buying opportunity is Bell Potter.
According to a note this morning, the broker has retained its speculative buy rating with a slightly trimmed price target of $12.02.
Based on the current Chalice Mining share price, this implies potential upside of just over 60% for investors over the next 12 months.
What did the broker say?
Bell Potter notes that the company has released drilling results from the Gonneville deposit this week, which point to further resource growth. It also highlights that the company has commenced "the first-ever exploration drill program within the Julimar State Forest."
Based on recent results, it believes this could underpin potential positive exploration news flow.
Outside this, Bell Potter is very positive on the world-class Julimar project in Western Australia. And it isn't hard to see why. Last year drilling results at Julimar revealed the largest nickel sulphide discovery in over 20 years and the largest platinum-group elements (PGE) discovery in Australian history.
The broker commented: "CHN's 100%-owned Julimar project has emerged as a globally significant PGE-Ni-Cu deposit. Located 70km north of Perth in WA, it represents a unique opportunity to establish a new, strategic PGE and base metals supply in a top mining jurisdiction. The demonstrated Resource growth potential and the commencement of regional exploration programs signal potential positive newsflow on ongoing exploration success. We make no material changes to our risk-adjusted NPV-based valuation for CHN on this update. We retain our Speculative Buy recommendation and valuation of $12.02/sh."
