Chalice Gold Mines intersects further high-grade PGE-copper-gold at Julimar

by Leena Thomas
Image: Chalice Gold Mines Limited

Chalice Gold Mines Limited (ASX: CHN | OTCQB: CGMLF) has announced significant new results including 50m @ 1.8g/t Pd, 0.5g/t Pt, 0.9g/t Au, 0.2% Ni, 1.1% Cu, and 0.02% Co from 112m, from the ongoing exploration activities at its Julimar Nickel-Copper-Platinum Group Element Project in Western Australia.

The company reported that the new assay results from ongoing step-out and resource definition drilling at the ~1.6km x >0.8km Gonneville Intrusion continue to grow the Julimar PGE-Ni-Cu-Co-Au discovery.

CHN said that high-grade PGE-Cu +/- Au footwall contact zone (G4 Zone) was extended and two new internal high-grade PGE-Cu +/- Ni-Co-Au zones (G6 Zone and G7 Zone) was defined at southern end of the intrusion.

The company said that high-grade PGE-Au oxide zone was also extended over an area of 1,700m x up to 750m and remains open to the north into the Julimar State Forest.

Significant new high-grade drill intersections include 50m @ 1.8g/t Pd, 0.5g/t Pt, 0.9g/t Au, 0.2% Ni, 1.1% Cu, 0.02% Co from 112m, including 17m @ 2.5g/t Pd, 0.8g/t Pt, 2.0g/t Au, 0.2% Ni, 1.8% Cu from 134m;  7m @ 13.8g/t Pd, 0.3g/t Pt, 0.5g/t Au, 0.2% Ni, 0.2% Cu, 0.02% Co from 83m; and 9.8m @ 7.7g/t Pd, 1.2g/t Pt, 0.3g/t Au from 26.9m.

The company said that the initial drill hole into EM Conductor ‘X’, ~800m north-west of the G4 Zone, intersected a ~500m wide interval of Gonneville mafic-ultramafic rock types with broad PGE zones associated with disseminated sulphides; and a high-grade interval of 3m @ 1.9g/t Pd, 0.5g/t Pt, 0.5g/t Au, 0.5% Cu from 884m, with a similar PGE-Cu-Au association to the G4 Zone.

CHN said that assay results are pending for a further 45 completed drill holes.

Chalice reported that it is fully funded to continue its 5-rig resource drill-out and comprehensive metallurgical testwork program at Julimar with ~$50 million in cash and investments (as of 30 Sept 2020).

Julimar project

The Julimar Nickel-Copper-PGE project is located 70km north-east of Perth in Western Australia. The 100%-owned Julimar Project covers the entire >26km long Julimar Intrusive Complex (~26km x ~7km mafic-ultramafic layered complex) and ~24km of the highly prospective complex is yet to be explored.

Chalice commenced a systematic, greenfield exploration program in mid-2019 in the southern portion of the Project, on private land, targeting high-grade Ni-Cu-PGEs.

An initial RC drill program commenced in Q1 2020 and resulted in the discovery of high-grade nickel-copper-cobalt-PGE mineralisation at the newly named Gonneville Intrusion. Five high-grade massive / matrix / heavily disseminated sulphide zones (G1-5) were intersected till date.

The company’s helicopter-borne low frequency electro-magnetic (EM) survey had outlined three new extensive EM anomalies within the Julimar State Forest – Hartog, Baudin, and Jansz.

Drilling at Gonneville intrusion

The company has been continuing a step-out and resource definition drill program at the Gonneville Intrusion within the Julimar project, where Chalice recently made a major high-grade PGE-Ni-Cu-Co-Au discovery.

CHN said that a total of 27 diamond drill holes and 116 RC drill holes were completed to date at the project. The company said that the assay results for 18 diamond and 80 RC holes have now been reported. Assay results are pending for a further 45 completed drill holes (6 diamond and 39 RC).

G4 Zone extended

Chalice reported that the eastern (footwall) contact of the Gonneville Intrusion (G4 Zone) now extends over 800m of strike length and up to 500m of dip extent and remains wide-open and sparsely drilled.

Significant new intersections in the G4 Zone include 50m @ 1.8g/t Pd, 0.5g/t Pt, 0.9g/t Au, 0.2% Ni, 1.1% Cu, 0.02% Co from 112m (JRC089); including 17m @ 2.5g/t Pd, 0.8g/t Pt, 2.0g/t Au, 0.2% Ni, 1.8% Cu from 134m (>1% Cu cut-off grade); 9m @ 1.1g/t Pd, 0.3g/t Pt, 0.2g/t Au, 0.1% Ni, 0.5% Cu, 0.01% Co from 127m (JRC088); 8m @ 3.4g/t Pd, 0.3g/t Pt, 0.2g/t Au, 0.4% Ni, 0.9% Cu, 0.03% Co from 67m (JRC063); 7m @ 13.8g/t Pd, 0.3g/t Pt, 0.5g/t Au, 0.2% Ni, 0.2% Cu, 0.02% Co from 83m (JRC064); 15m @ 1.4g/t Pd, 0.2g/t Pt, 0.3g/t Au, 0.2% Ni, 0.4% Cu, 0.02% Co from 141m (JRC070); and 8m @ 2.2g/t Pd, 13.3g/t Pt, 0.1g/t Au, 0.1% Ni, 0.1% Cu, 0.01% Co from 225m (JRC073).

The company noted that JD019 was drilled 40m to the west and down-dip of JRC089 and intersected a 33m wide interval of heavily disseminated chalcopyrite-dominant mineralisation from 141m localised above the footwall contact.

CHN said that the RC and diamond drilling is continuing to test the prospective footwall contact position elsewhere within the intrusion.

Two new high-grade zones, G6 and G7

The company announced that the RC and diamond drilling at the southern end of the Gonneville Intrusion have defined two new high-grade PGE-Cu +/- Ni-Co-Au zones, G6 and G7, defined using a >1.0g/t Pd cut-off grade.

The company said that the G6 Zone extends over 400m of strike length and up to 400m of dip extent, while the G7 Zone extends over 350m of strike length and up to 475m of dip extent. Both zones remain open to the down-dip.

CHN said that these newly defined zones, interpreted to have a more northerly strike and a steeper dip than the other high-grade zones, appear to merge with the G4 Zone at depth, and has the precious and base metal grades similar to those of the G4 Zone.

Significant new intersections include 19m @ 3.1g/t Pd, 0.7g/t Pt, 1.1g/t Au, 0.2% Ni, 0.8% Cu, 0.02% Co from 67m (JRC070); 13m @ 1.1g/t Pd, 0.3g/t Pt, 0.1g/t Au, 0.2% Ni, 0.4% Cu, 0.02% Co from 95m (JRC070); 15m @ 1.6g/t Pd, 0.3g/t Pt, 0.3g/t Au, 0.1% Ni, 0.5% Cu, 0.02% Co from 148m (JRC058); 11m @ 3.0g/t Pd, 0.9g/t Pt, 0.5% Ni, 0.3% Cu, 0.06% Co from 78m (JRC073); 3.0m @ 2.1g/t Pd, 0.6g/t Pt, 0.8g/t Au, 0.2% Ni, 1.1% Cu, 0.03% Co from 113m (JRC062); and, 9.5m @ 1.4g/t Pd, 0.4g/t Pt, 0.4g/t Au, 0.1% Ni, 0.8% Cu, 0.01% Co from 388m (JD014).

CHN said that more infill drilling is required to verify the continuity of the mineralised zones.

High-grade hits from G1 and G2 zones

The company said that the infill drilling at a 40m hole spacing within the high-grade PGE-Ni-Cu-Co G1 and G2 Zones has continued, while the Company awaited permit approvals to test down-dip of the zones.

CHN said that this permit has now been approved and further step-out drilling is currently underway.

Significant new intersections include 14.4m @ 7.7g/t Pd, 1.7g/t Pt, 0.1g/t Au, 1.2% Ni, 0.6% Cu, 0.07% Co from 36.7m (JD016, G1); 6.6m @ 5.5g/t Pd, 0.3g/t Pt, 0.9% Ni, 0.4% Cu, 0.06% Co from 82m (JD016, G2);  11m @ 4.9g/t Pd, 0.6g/t Pt, 0.7% Ni, 0.3% Cu, 0.04% Co from 65m (JD014, G2); 22.7m @ 4.4g/t Pd, 0.7g/t Pt, 0.5% Ni, 0.3% Cu, 0.04% Co from 83m (JD014, G2); and 11.6m @ 4.2g/t Pd, 0.8g/t Pt, 0.9% Ni, 0.5% Cu, 0.05% Co from 60.6m (JD015, G2).

Oxide zone extended

The company reported that wide zones of shallow, high-grade PGE+/-Au mineralisation continue to be intersected in saprolitic clays developed over Gonneville ultramafic geology, over an area of 1,700m x up to 750m.

Significant new intersections include 36.6m @ 2.7g/t Pd, 0.6g/t Pt, 0.1g/t Au from 0m (JD015); 9.8m @ 7.7g/t Pd, 1.2g/t Pt, 0.3g/t Au from 26.9m (JD016); 25m @ 2.9g/t Pd, 0.4g/t Pt, 0.1g/t Au from 3m (JRC058); 22m @ 2.3g/t Pd, 0.5g/t Pt, 0.1g/t Au from 1m (JRC070); 18m @ 3.4g/t Pd, 1.1g/t Pt, 0.1g/t Au from 5m (JRC087); 10m @ 4.5g/t Pd, 0.6g/t Pt, 0.1g/t Au from 24m (JD014); 17m @ 2.5g/t Pd, 0.4g/t Pt from 9m (JRC069); 18m @ 2.3g/t Pd, 0.7g/t Pt from 13m (JRC067); and 14m @ 1.7g/t Pd, 1.4g/t Pt, 0.5g/t Au from 4m (JRC068).

The company said that the metallurgical testwork on oxide samples to date indicates that the palladium and gold can be recovered under atmospheric oxidative leach conditions.

High-grade intersections at EM Conductor X

The company announced that assays were received for JD018, the initial drill hole into EM Conductor ‘X’, ~800m north-west of the G4 Zone.

CHN said that the hole intersected a ~500m wide interval of the Gonneville Intrusion from 428m down-hole, confirming that the intrusion extends well beyond the limits of the previously defined ~1.6km x ~0.8km magnetic anomaly.

JD018 intersected two broad intervals of PGE mineralisation associated with disseminated sulphides within the intrusion: 63.7m @ 0.5g/t Pd, 0.1g/t Pt from 675.3m; and, 113.1m @ 0.6g/t Pd, 0.1g/t Pt from 777m.

The company reported that a 3m-wide interval grading 1.9g/t Pd, 0.5g/t Pt, 0.5g/t Au, 0.2% Ni, 0.5% Cu, 0.02% Co from 884m, located near the footwall contact of the intrusion, was cut by a ~20m wide post-mineralised dolerite dyke before entering footwall sediments, highlighting the significant growth potential of the contact position (G4 Zone).

Ongoing and planned activities

Chalice reported that it is continuing its approach of simultaneously exploring and evaluating the zones of high-grade PGE-Ni-Cu-Co+/-Au mineralisation and the extensive PGE-Ni-Cu-Co+/-Au zones associated with disseminated sulphides within the ~1.6km x >0.8km Gonneville Intrusion.

The company said that the ongoing and planned activities at Julimar include resource definition drilling wherein a ~70,000m RC/diamond drill program is underway with 3 RC and 2 diamond rigs; EM Geophysics (DHEM and ground EM); metallurgical testwork; and initial geochemical analysis and metallogenesis studies.

Further work

Chalice said that diamond and RC drilling will continue to test high-priority targets including EM conductors. The company said that further drilling along strike and down dip may occur at these and other targets depending on results.

CHN reported that the Down-hole EM surveying will be carried out on the majority of diamond and selective RC drill holes to test for off-hole conductors, and subsequent holes will undergo down-hole EM if required.

Management comments

Chalice Managing Director Alex Dorsch said: “The Gonneville PGE-Ni-Cu-Co-Au discovery continues to grow on multiple fronts, with another round of exceptional drill results extending the known high-grade zones, defining new zones and further reinforcing the numerous growth opportunities across the Project.

Given the width and grade of the drill results we are continuing to see over a very large area, the scale of the Gonneville Intrusion itself, and the significant growth potential beyond the limits of the current resource drilling, it is clear that Julimar is emerging as a globally significant deposit of critical metals in Western Australia.

We now have sufficient drill density at the southern end of the intrusion to define two entirely new zones (G6 and G7), both of which have significant scale and include some of the highest PGE grades seen to date on the Project. We have also recently intersected some of the widest, highest grade oxide mineralisation at this southern end of the intrusion. Given recent favourable leach testwork results, we believe this oxide zone could have a significant impact on project economics.

Meanwhile, the first deep hole into EM Conductor ‘X’, approximately 800m north-west of the G4 Zone, has improved our geological understanding of the intrusion and delivered a proof-of-concept for the growth potential of the footwall contact zone (G4).

The presence of PGE-copper-gold rich mineralisation at the bottom of JD018 is exciting, as it indicates that the entire footwall contact of the intrusion is prospective, providing a major target position going forward.

The intrusion is now interpreted to be a ~500m thick ‘sill’ style of mafic-ultramafic intrusion, with a consistent westerly dip and northerly plunge. This again reinforces the prospectivity of the recently announced Hartog EM Anomaly, located immediately north of Gonneville, in the Julimar State Forest.

Given that this very strong EM anomaly sits just 1.5km north of the very wide mineralised intercepts encountered in JD018, it’s not hard to see why we are so excited about the district-scale potential at Julimar. This is a large, multi-faceted mineralised complex which continues to surprise on the upside.

With five rigs drilling, we are on track to meet the mid-2021 guidance for a maiden Mineral Resource for Gonneville and continue to prioritise the growth of the high-grade mineralised zones with step-out drilling.”