The Chalice Mining Ltd (ASX: CHN) share price finished in the green on Wednesday after a positive update from fellow miner Venture Minerals Ltd (ASX: VMS).
Chalice Mining shares closed 3.66% higher at $3.68 apiece, after hitting an intraday high of $3.70.
Let's take a look at what was released to the ASX earlier today.
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Chalice Mining earns majority interest in South West Project
Investors rallied up the Chalice Mining share price after the company received a 51% stake in Venture Minerals' South West Project.
According to the Venture Minerals announcement, Chalice Mining received results from its recently completed auger soil geochemistry program at the site, identifying two new Ni-Cu-PGE target areas.
Ni-Cu-PGE stands for a number of different minerals. These are nickel (Ni) and copper (Cu) while PGE represents 'platinum group elements'. These consist of: palladium (Pd), iridium (Ir), osmium (Os), rhodium (Rh), and ruthenium (Ru).
The new targets are supported by underlying geology that is said to be consistent with the presence of ultramafic rocks.
Furthermore, it contains coincident and untested airborne electromagnetic and magnetic anomalies at the Thor target – a 20-kilometre-long magnetic anomaly within the South West project.
Following the auger soil geochemistry program and recently completed maiden drilling program, Chalice Mining met its $1.2 million expenditure requirement to attain a 51% interest.
Should management choose to spend another $2.5 million on exploration activities by July 2024, the Chalice interest will increase to 70%.
Venture Minerals managing director Andrew Radonjic commented:
I am very pleased with the progress made to date at Thor. With Chalice now having met their 51% expenditure milestone ahead of schedule, Venture looks forward to working with Chalice in the future on our South West project.
Chalice Mining share price summary
Over the last 12 months, Chalice Mining shares have dropped almost 50% and are down 60% year to date.
The company's share price reached a 52-week low of $3.37 in late June before rebounding higher.
Chalice Mining commands a market capitalisation of roughly $1.38 billion.
