Chalice Gold Mines makes nickel-palladium discovery at Julimar

Chalice Gold Mines (ASX: CHN) has confirmed a significant nickel-palladium discovery has been made at its large Julimar project north-east of Perth, Western Australia.

The company emerged from a trading halt this morning to announce it has intersected a new, shallow, high-grade palladium-nickel-copper zone in reverse circulation (RC) drill hole JRC006, about 60m east of Chalice’s maiden discovery hole, JRC001.

Assay results have been received for the first 80m of the new hole and include 41m grading at 2.6 grams per tonne palladium, 0.4g/t platinum, 0.5% nickel, 0.4% copper and 0.03% cobalt from a depth of 39m. This intersection includes 31m at 3.3g/t palladium, 0.5g/t platinum, 0.7% nickel, 0.5% copper and 0.04% cobalt from 40m.

Results from surface also returned 29m at 1.9g/t palladium and 0.4g/t platinum, including 11m at 3.8g/t palladium and 0.7g/t platinum from surface.

These latest results follow Chalice’s announcement last month that its first hole drilled at Julimar unearthed a high-grade massive sulphide zone with 19m grading at 8.4g/t palladium, 1.1g/t platinum, 2.6% nickel, 1% copper and 0.14% cobalt from 48m.

Chalice said the new zones are interpreted to be striking parallel to the zone in JRC001 and remain open in all directions.

In addition, all six RC holes assayed to date have intersected broad zones of significant palladium mineralisation with associated base metals, which Chalice believes demonstrates the “large-scale potential” of the newly named Gonneville intrusive. This irregular shaped intrusive body has been modelled as about 1.6km long and 700m wide.

Large-scale potential

Chalice managing director Alex Dorsch said the intersection of significant broad zones of palladium was a “surprising result” that highlighted the metal-rich nature of the Gonneville intrusive and its “potential to deliver a discovery of considerable scale”.

“While the broad palladium intervals point to a large-scale [platinum group elements] discovery, our focus remains on defining high-grade zones of mineralisation which, according to the geological analogues such as Jinchuan in China and Kabanga in Tanzania, could be found at depth below the disseminated sulphide zones,” he said.

An RC and diamond rig are continuing to drill high-priority electromagnetic targets that are being generated by down hole electromagnetic (DHEM) surveys, Chalice reported.

“The discovery at Julimar has demonstrated that this region is a new [nickel-copper-platinum group elements] province and regional activities are also now being planned,” Mr Dorsch said.

“Chalice remains in an enviable position, with the funding to continue our systematic exploration programs through the current challenging market conditions,” he added.

While all platinum-palladium assays have been received for the six RC drill holes, assays for base metals are yet to be received for several holes.

Assays for other platinum group elements including ruthenium, rhodium, osmium and iridium are also pending, Chalice said.

Chalice shares have surged more than 80% to $1.03 on the news in morning trade.