ASX 200 gold stock Chalice Mining just rocketed 14%. Here's why

Atop gold, the ASX 200 miner also explores for and produces platinum group elements (PGE), nickel and copper.

| More on:
rising gold share price represented by a green arrow on piles of gold block

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

S&P/ASX 200 Index (ASX: XJO) gold stock Chalice Mining Ltd (ASX: CHN) has had a tough seven months behind it.

But today things are looking decidedly up.

Shares in the gold miner – which also explores for and produces platinum group elements (PGE), nickel and copper – closed yesterday trading for $1.49. In early afternoon trade on Wednesday, shares are swapping hands for $1.69 apiece, up 13.5%.

For some context, the ASX 200 is up 1.4% at this same time.

Here's what's spurring investor interest.

ASX 200 gold stock rockets on exploration approvals

The Chalice Mining share price is soaring after the miner reported it has received all the required approvals to commence the next phase of exploration drilling across its 100% owned Julimar Nickel-Copper-PGE Exploration Project, located in Western Australia.

The Julimar Exploration Project surrounds the Gonneville Deposit, a significant greenfield Ni-Cu-PGE discovery made by Chalice in 2020.

The ASX 200 gold stock said that with the approval of the Stage 3 Conservation Management Plan and Program of Work for exploration drilling across the full 30 kilometre interpreted strike length of the Julimar Complex, it expects to commence low-impact drilling "shortly".

Management said the exploratory "will be completed within non-vegetated areas, using low-impact techniques that have no impact on vegetation or the environmental values of the Julimar State Forest".

Chalice Mining will used diamond drill rigs to target high-grade Ni-Cu-PGE discoveries at the untested Torres, Jansz and Baudin targets, located between 10 kilometres and 20 kilometres from the Gonneville Project.

Atop the diamond drilling, Chalice said it will employ broad, shallow aircore (AC) drilling to "assess the full extent of prospective ultramafic-mafic geology, the host rocks for Ni-Cu-PGE mineralisation, across the Julimar Complex".

The company expects the drilling program to continue for at least six months.

Chalice Mining share price snapshot

Despite the big boost to the Chalice Mining share price today, the ASX 200 gold stock remains down 70% over the past 12 months.

Motley Fool contributor Bernd Struben 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.

More on Gold

A woman wearing a gold top and carrying a gold bar gives the thumbs down signal as she leans against a wall with a sombre look on her face as the Kingsgate share price goes lower
Earnings Results

Guess which ASX 200 gold stock is crashing on US$2.5b loss

This gold miner's results haven't gone down well with the market.

Read more »

plummeting gold share price
Share Fallers

How has this ASX 300 gold share managed to crash 50% today?

Investors have just lost half of their money with this stock.

Read more »

A woman holds a gold bar in one hand and puts her other hand to her forehead with an apprehensive and concerned expression on her face after watching the Ramelius share price fall today
Gold

Guess which ASX 200 gold stock is crashing 15% on a disappointing update

Investors aren't happy with the gold miner's update.

Read more »

Calculator and gold bars on Australian dollars, symbolising dividends.
Gold

Guess which ASX gold shares are sinking after announcing a ~$2.3b merger

Management believes this potential merger will be 'an exciting inflection point' for shareholders. Shareholders don't appear to agree.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Gold

Guess which ASX 200 gold share Bell Potter says is a buy with almost 30% upside

Golden returns could be on the cards for owners of this mining share.

Read more »

rising gold share price represented by a green arrow on piles of gold block
Gold

Gold Road shares rebound 7% as brokers scramble to upgrade ASX 200 gold stock

ASX 200 gold stock Gold Road Resources is enjoying a massive rebound today.

Read more »

Gold bars with a share price chart in the background.
Gold

After soaring 15% in 2023, what's ahead for the gold price in 2024?

ASX 200 gold stocks received some heady tailwinds in 2023 from a surging gold price.

Read more »

plummeting gold share price
Gold

Why is this leading ASX 200 gold stock crashing 14% today?

The ASX 200 gold miner is coming under heavy selling pressure today.

Read more »