The Chalice Mining Ltd (ASX: CHN) share price is having a day to remember.
In afternoon trade, the mineral exploration company's shares are up 10% to $4.38.
This makes the Chalice Mining share price the best performer on the ASX 200 today.
Why is the Chalice Mining share price racing higher?
Investors have been bidding the Chalice Mining share price higher today following the release of an update on exploration activities at the Julimar Nickel-Copper-Platinum Group Element (PGE) Project in Western Australia.
According to the release, exploration activities are continuing across the 30km-long Julimar Complex, with four diamond drill rigs currently working across the 10km-long Hartog-Baudin strike length and two rigs continuing resource definition drilling at the Gonneville PGE-Ni-Cu-Co-Au Deposit.
Positively, drilling to date supports the interpretation of the Gonneville intrusion (and Julimar mafic-ultramafic Complex) as having a rare chonolith-like geometry, which is similar to other major ultramafic-mafic orthomagmatic systems worldwide that host significant nickel-copper+/-PGE deposits. These include deposits such as Norilsk-Talnakh, Kabanga and Jinchuan.
Furthermore, Chalice recently made an important breakthrough in its exploration of the project, with the previously elusive northern extension of the Gonneville intrusion interpreted at depth in an effective 2D seismic survey. Previous drilling in this area had failed to intersect the prospective maficultramafic horizon, which drilling has now confirmed to be faulted ~650m to the west-north-west.
This essentially means that a new segment of the Julimar Complex can now be targeted with follow-up drilling, providing a substantial pathway for growth in the resource.
Strategic interest
Also potentially giving the Chalice Mining share price a lift today was news of strategic interest in the project from several large international trading houses, downstream battery, and auto manufacturers.
The release notes that interest in the large nickel sulphide endowment has increased significantly following the passing of the US Inflation Reduction Act (IRA) bill.
As a result, Chalice is currently considering securing a strategic minority joint venture partner (or partners) to assist in developing a potential mine at Gonneville.
