Chalice Gold Mines Limited (ASX: CHN | OTCQB: CGMLF) announced that exceptional new drill intersections have resulted in a significant extension of three high-grade PGE-Ni-Cu-Co zones at its Julimar Nickel-Copper-PGE project in WA.
The company reported that the new results from ongoing resource definition drilling at the ~1.6km x 0.8km Gonneville Intrusion have significantly extended three high-grade PGE-Ni-Cu-Co+/-Au zones, G1, G3, and G4.
CHN said that significant new drill intersections from the high-grade G1 Zone include 31m @ 3.3g/t Pd, 0.7g/t Pt, 0.4% Ni, 0.2% Cu, 0.03% Co from 76m including 13m @ 5.8g/t Pd, 1.5g/t Pt, 0.7% Ni, 0.4% Cu, 0.04% Co from 83m; and 30m @ 2.8g/t Pd, 0.3g/t Pt, 0.4% Ni, 0.1% Cu, 0.03% Co from 164m including 6.4m @ 6.3g/t Pd, 0.5g/t Pt, 1.0% Ni, 0.4% Cu, 0.07% Co from 167.3m.
The company said that the G1 Zone remains open along strike to the south and down-dip and is defined over ~400m of strike and up to ~340m of dip extent.
Chalice reported that high-grade PGE-Cu-Au dominant G4 Zone intersected in two new holes over 300m apart 25.7m @ 3.9g/t Pd, 2.3g/t Pt, 0.7g/t Au, 0.2% Ni, 0.8% Cu, 0.02% Co from 418.1m including 6.7m @ 10.6g/t Pd, 7.7g/t Pt, 1.3g/t Au, 0.2% Ni, 1.0% Cu, 0.02% Co from 426m; and 25m interval of visually logged disseminated sulphides from 240m.
The company noted that the G4 Zone appears to be localised along the footwall contact of the Gonneville Intrusion, a new highly prospective and wide-open target position. CHN reported that a new 27m interval of visually logged heavily disseminated sulphides from 81m is interpreted to be a similar style of mineralisation and may extend G4 over ~400m east.
Chalice reported that shallow high-grade G3 Zone, to the west of and parallel to the G1 Zone, intersected in two holes 13.7m @ 4.4g/t Pd, 0.9g/t Pt, 0.7% Ni, 0.7% Cu, 0.05% Co from 29.3m; and 29m interval of visually logged heavily disseminated sulphides from 125m. The company said that the G3 Zone remains wide-open.
Chalice reported that it is fully-funded to continue its accelerated 3-rig program at Julimar with ~$50 million in cash and investments. The company said that assays are pending for a further 25 completed drill holes (3 diamond and 22 RC).
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.
The complex is considered highly prospective for nickel, copper, and platinum group elements (PGEs), but had never been explored for these metals prior to Chalice. Chalice had completed reconnaissance solid geochemistry and a Moving Loop EM survey in late 2019 in preparation for a maiden Reverse Circulation (RC) drill program.
Chalice had commenced a systematic, greenfield exploration program in mid-2019 targeting high-grade Ni-Cu-PGEs. Two MLEM conductors were shown to be associated with anomalous nickel-in-soils and preferentially located along the margins of a discrete magnetic anomaly (the potential southern feeder zone, subsequently named the Gonneville Intrusion).
An initial RC drill program commenced in Q1 2020 at the Gonneville Intrusion and resulted in the discovery of shallow, high-grade nickel copper-cobalt-PGE mineralisation in the very first drill hole.
Resource definition drilling at Gonneville intrusion
The company reported that three rigs, two Reverse Circulation (RC) and one diamond, are continuing to drill at the Gonneville Intrusion. Chalice said that a total of 15 diamond drill holes and 62 RC drill holes have been completed to date.
Chalice has now announced the results from five new diamond holes (JD006-JD009 and part of JD010) and 20 RC holes (JRC018-37) from the ongoing resource definition drilling at the ~1.6km x 0.8km Gonneville Intrusion. The company said that six new reconnaissance RC holes have been completed at the southern end of the Gonneville Intrusion, where a ~650m x ~250m PGE-Ni-Cu soil anomaly partly overlaps MLEM Conductor ‘F’. CHN said that assays are pending for a further 25 completed drill holes (3 diamond and 22 RC).
The company said that a total of 12 new step-out diamond and RC drill holes targeting the high-grade G1 Zone have been drilled on a nominal 40-80m x 80m grid, while two new diamond drill holes, located ~300m apart, and a shallow RC hole (JRC048) intersected the G4 Zone. CHN said that two holes, JD006 and JD013 were drilled at the G3 zone.
Significant extension of resource
Chalice reported that the three high-grade zones, G1 zone, G3 zone, and G4 zone, were extended by exceptional new drill intersections.
G1 zone
Chalice said that assay results have now confirmed a wide intersection of high-grade PGE-Ni-Cu mineralisation at G1 zone. Significant new drill intersections from the high-grade G1 Zone (the discovery zone) include 31m @ 3.3g/t Pd, 0.7g/t Pt, 0.4% Ni, 0.2% Cu, 0.03% Co from 76m (JD010) including 13m @ 5.8g/t Pd, 1.5g/t Pt, 0.7% Ni, 0.4% Cu, 0.04% Co from 83m (JD010); 30m @ 2.8g/t Pd, 0.3g/t Pt, 0.4% Ni, 0.1% Cu, 0.03% Co from 164m (JD006), including 6.4m @ 6.3g/t Pd, 0.5g/t Pt, 1.0% Ni, 0.4% Cu, 0.07% Co from 167.3m (JD006); 9m @ 5.7g/t Pd, 1.1g/t Pt, 1.1% Ni, 1.5% Cu, 0.06% Co from 103m (JRC019); 9.2m @ 4.6g/t Pd, 0.7g/t Pt, 0.3% Ni, 0.1% Cu, 0.02% Co from 200.8m (JD009); 5m @ 3.4g/t Pd, 0.7g/t Pt, 1.1% Ni, 3.3% Cu, 0.07% Co from 46m (JRC023); and 9m @ 2.7g/t Pd, 0.6g/t Pt, 0.6% Ni, 0.3% Cu, 0.04% Co from 63m (JRC025).
The company reported that the hole JD013, drilled ~70m to the west of JD003, intersected a 40m wide interval of visually logged matrix, minor massive and disseminated sulphides from 224m.
The company announced that assay results have confirmed that the G1 zone extends over ~400m of strike length and up to ~340m of dip-extent. CHN said that the new wide intersection demonstrates the potential of the G1 Zone to grow and widen down-dip to the west. The company said that the zone remains open down-dip and along strike to the south.
G4 zone
The company announced that high-grade PGE-Cu-Au dominant G4 Zone reported high-grade intersections in two new holes over 300m apart.
Highlights include 25.7m @ 3.9g/t Pd, 2.3g/t Pt, 0.7g/t Au, 0.2% Ni, 0.8% Cu, 0.02% Co from 418.1m (JD006), including 6.7m @ 10.6g/t Pd, 7.7g/t Pt, 1.3g/t Au, 0.2% Ni, 1.0% Cu, 0.02% Co from 426m (JD006); and 25m interval of visually logged disseminated sulphides from 240m (JD010 – assays pending).
CHN said that the G4 Zone appears to be localised along the footwall contact of the Gonneville Intrusion, a new highly prospective and wide-open target position.
The company announced that a new 27m interval of visually logged heavily disseminated sulphides from 81m was intersected in shallow RC hole JRC048. This is interpreted to be a similar style of mineralisation and may extend G4 over ~400m east.
G3 zone
Chalice said that shallow high-grade G3 Zone, to the west of and parallel to the G1 Zone, reported intersects of 13.7m @ 4.4g/t Pd, 0.9g/t Pt, 0.7% Ni, 0.7% Cu, 0.05% Co from 29.3m (JD006); and 29m interval of visually logged heavily disseminated sulphides from 125m (JD013 – assays pending).
The company said that the G3 Zone remains wide-open.
Drilling results from Conductor ‘F’ Target
The company reported that six new reconnaissance RC holes have been completed at the southern end of the Gonneville Intrusion, where a ~650m x ~250m PGE-Ni-Cu soil anomaly partly overlaps MLEM Conductor ‘F’.
CHN reported that assays have been received for one hole (JRC037), which has intersected narrow zones of high-grade mineralisation associated with disseminated sulphides; and assays for the remaining five holes are pending.
Significant results include 3m @ 1.9g/t Pd, 0.4g/t Pt, 0.4% Ni, 0.1% Cu, 0.04% Co from 45m; 4m @ 1.1g/t Pd, 0.3g/t Pt, 0.2% Ni, 0.2% Cu, 0.02% Co from 58m; and, 2m @ 1.6g/t Pd, 0.7g/t Pt, 0.4% Ni, 0.4% Cu, 0.03% Co from 68m.
CHN said that 19 new step-out RC drill holes targeting the disseminated sulphide zones have also been drilled, on a 200m x 80m step-out grid. The company said that assay results continue to demonstrate the widespread nature of disseminated sulphides within the Gonneville intrusion, with several wide intervals of PGE-Ni-Cu intersected
Next steps
Chalice said 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 zones associated with disseminated sulphides within the ~1.6km x 0.8km Gonneville Intrusion.
Ongoing and planned activities at Julimar include a ~20,000m Phase 2 RC drill program, which is currently underway utilising two rigs; Diamond drilling program wherein a diamond drill rig continues to step-out from known high-grade zones and test new DHEM targets and a second diamond drill rig is being sourced, which is anticipated to mobilise to site in the coming weeks; EM Geophysics (DHEM and ground EM) to be completed on all diamond holes and selected RC holes; and the preliminary metallurgical testwork on four ore types – massive, matrix, disseminated and oxide.
Management comments
Chalice Managing Director, Alex Dorsch, said: “This is an exciting step-change in our ongoing exploration program at Julimar in that the new results highlight the potential for material growth in the high-grade zones we have identified to date.
The recent results from drilling in the G1, G3 and G4 Zones confirm that these zones host exceptionally high-grade mineralisation and remain open. The new 40 metre wide interval of matrix, minor massive and disseminated sulphides in the G1 Zone is 80m down-dip from one of our best high-grade intersections in JD003, which suggests that the zone may be widening and it remains open down-dip to the west.
The recently discovered PGE-copper-gold dominant G4 Zone, announced in early July, has also been intersected in two, potentially three new holes and we now believe this could represent an entirely new target horizon along the footwall contact of the Gonneville Intrusion with potential for further growth.
The key takeaway is that we are rapidly expanding the core of high-grade, high-tenor sulphide mineralisation within these three zones, confirming the significance of the Gonneville discovery.”