The Chalice Mining Ltd (ASX: CHN) share price has returned from its trading halt with a bang.
In morning trade, the mineral exploration company's shares have risen 9% to $6.87.
Why is the Chalice Mining share price jumpinh?
The Chalice Mining share price is racing higher today after investors responded positively to the release of a mineral resource update at the Gonneville deposit of the Julimar nickel-copper-platinum group element (PGE) project in Western Australia.
According to the release, drilling and re-modelling have resulted in a ~50% increase in the contained nickel equivalent metal relative to the July 2022 estimate to approximately 3Mt.
Importantly, while this is a massive resource, it represents only 7% of the Julimar Complex strike length.
And it may not end there. Drilling is continuing at Gonneville outside the resource, with assays currently pending for 52 drill holes. Furthermore, two diamond rigs continue to test for extensions of high-grade mineralisation at depth and the deposit remains open beyond a depth of ~800m, with step-out drilling indicating that mineralisation extends to at least ~1,100m.
Management believes this points to a significant underground resource growth opportunity.
Chalice's managing director and chief executive officer, Alex Dorsch, commented:
The ~50% increase in the Gonneville Resource to ~3 million tonnes of nickel equivalent is quite a remarkable achievement for the Chalice team given it is barely three years since the discovery of the Julimar Complex. Gonneville is now the 2rd largest undeveloped nickel sulphide resource in Australia.
The latest numbers continue to demonstrate the world-class endowment, scale and quality of the Gonneville Deposit, while also highlighting a compelling picture of upside along the remaining ~28km strike length of the Julimar Intrusive Complex.
What's next?
The company revealed that it is continuing to respond to strong strategic interest in the Julimar Project and intends to commence a formal strategic partnering process.
This includes with downstream, trading and end-user parties, as well as potential mining/operating partners. The company's aim is to explore a broad range of transactions that maximise shareholder value.
Management advised that the partnering process will continue in parallel with the progression of development studies and has the potential to influence the optimal development plan for Gonneville.
