Chalice Mining share price surges 11% on new copper and nickel find

This mineral exploration company's shares are smashing the market today…

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The Chalice Mining Ltd (ASX: CHN) share price has been a very strong performer on Thursday.

In morning trade, the mineral exploration company's shares are up over 11% to $6.20.

This latest gain means the Chalice Mining share price has rebounded over 40% since this time last month, as you can see below.

Why is the Chalice Mining share price charging higher?

Investors have been scrambling to buy the company's shares this morning following the release of a promising update on drilling activities at the 100%-owned Julimar NiCu-PGE Project in Western Australia.

According to the release, drilling activities at the greenfield Hooley Prospect, ~5km north of the current Gonneville Resource, has intersected a significant PGE-nickel-copper-cobalt-gold mineralisation in initial drilling.

Management advised that sulphide mineralisation has been intersected in all five reconnaissance holes from three drill sites over ~1.8km of strike length. Assays are pending for a further nine holes and downhole electromagnetics are currently underway, after which a more definitive interpretation can be made regarding the scale and significance of the newly discovered mineralisation.

And while it notes that the geology and mineralisation at Hooley is quite variable, the high-grade mineralisation encountered so far in initial reconnaissance drilling is considered highly encouraging and highlights the prospectivity of this section of the Julimar Complex.

All in all, this is another promising update that appears to demonstrate the world class potential of the Julimar Complex.

Looking ahead, the company advised that exploration will continue along the Complex targeting extensions to known mineralised zones as well as potential new shallow high-grade zones.

It is also notes that it is possible that different styles of mineralisation (or higher-grade mineralisation) could be intersected along the complex, potentially contributing to the significant long-term value-creation that a world-class mineral district can create.

Motley Fool contributor James Mickleboro 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 Scott Phillips.

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