Chalice Gold Mines Limited (ASX: CHN, OTCQB: CGMLF) has announced a highly encouraging update on its Julimar Nickel-Copper-PGE project in WA.
The company reported that massive and matrix sulphides were intersected in the second diamond drill hole, JD002 at the Julimar project.
CHN said that hole JD002 was drilled as a ‘scissor hole’ of JD001, aiming to intersect the high-grade Ni-Cu-PGE zone in the discovery hole JRC001 at a low angle.
Chalice announced that JD002 intersected the strongly mineralised zone of massive, matrix and disseminated sulphides in fresh rock from 34.9m to 101m downhole (not true width) including Massive sulphides over 34.9-44.7m and 48.7-68.3m (~45% of the interval); and, Matrix sulphide (c. 20-40% sulphides) from 68.3-101m (~49% of the interval).
CHN said that the result also confirms the mineralised zone is extensive and dipping steeply to the west.
The company said that all assays are pending for both JD002 and JD001. CHN said that the core provides key information on mineralogy, which will allow initial metallurgical work to commence.
Chalice announced that it remains fully funded to continue its systematic exploration programs in Western Australia and Victoria.
The Julimar Nickel-Copper-PGE project is located just 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 in March 2020.
The first drill hole, JRC001 had intersected a thick zone of massive nickel-copper-palladium rich sulphides – 19m @ 8.4g/t Pd, 1.1g/t Pt, 2.6% Ni, 1.0% Cu and 0.14% Co from 48m in massive and matrix sulphides.
Drilling at Julimar
CHN had commenced a maiden 4-hole Reverse Circulation (RC) drill program at Julimar in early March 2020. This was to test three high-conductance ground MLEM targets, which appear to be associated with the margins of a discrete ‘lens-shaped’ magnetic anomaly.
The first RC drill hole, JRC001, was drilled to test MLEM Conductor ‘E’, located along the south-west margin of the magnetic anomaly, and returned a significant intersection in fresh rock, of 19m @ 8.4g/t Pd, 1.1g/t Pt, 2.6% Ni, 1.0% Cu and 0.14% Co from 48m in massive and matrix sulphides.
DD Hole JD002
The company said that the second diamond drill hole (JD002) at the Gonneville Intrusive (located at the southern end of the ~26km long Julimar Intrusive Complex) was drilled as a ‘scissor hole’ of JD001, designed to intersect the high-grade Ni-Cu-PGE zone intersected in the discovery hole JRC001.
JD002 was designed to drill at a low angle to the interpreted dip of the mineralised zone to determine the accuracy of DHEM modelling and to confirm the previous geological interpretation.
Strongly mineralised massive-matrix sulphide discovery zone in JD002
Chalice reported that strongly mineralised massive and matrix sulphide mineralisation was intersected in JD002 from the base of complete oxidation at 34.9m to 101m downhole, confirming the interpretation of a westerly dipping zone.
The company said that uppermost massive sulphide interval (9.8m) in JD002 comprises supergene pyrite-violarite dominant assemblage from 34.9m to 37.7m (2.8m) and grades into transitional pyrrhotite-pyrite-violarite-pentlandite massive sulphides over 37.7-39m (1.3m) followed by hypogene pyrrhotite-pentlandite-chalcopyrite massive sulphides over 39-44.7m (5.7m).
A second interval of massive sulphides (19.5m) comprising hypogene pyrrhotite-pentlandite-chalcopyrite was intersected from 48.7-68.3m and is separated from the uppermost massive sulphides by ~4m wide interval of serpentinite containing 1-20% disseminated sulphides.
CHN reported that Matrix to interstitial hypogene sulphides with subordinate massive sulphides were intersected contiguous from the lower contact of massive sulphides at 68.3m to 101m which comprises 20-40% sulphide (pyrrhotite-pentlandite-chalcopyrite) as a matrix to ex-olivine (serpentine) and pyroxene (amphibole-chlorite) cumulate ultramafic rocks.
It may be noted that all widths reported above are downhole widths (which are not true widths).
The company said that all assays for JD002, as well as JD001 are currently pending.
The company reported that the detailed geological logging of JD001 has now been completed and only relatively minor matrix sulphide intercepts were logged at 103-105m and at 114.5-116.6m, which correspond to the projected target depth of 90-110m downhole, as modelled from DHEM of JRC001.
CHN said that a possible explanation for the lack of massive sulphide in JD001 is the presence of a fine-grained mafic/gabbro intrusive logged over 105-114.5m and 116.5-121m, which has potentially stoped-out the sulphide zone at this location.
Chalice reported that the geotechnical logging of JD002 is underway. The company said that the preliminary observations, including 100% core recovery from ~37m, show that the zone of massive and matrix sulphide mineralisation is well preserved at this relatively shallow depth of drill testing.
The company reported that the preliminary logging of JD002 has revealed no evidence of the mafic intrusive unit (or any significant faults) like in JD001. This supports the interpretation that the mafic intrusive is orientated oblique to the drill section and is therefore unlikely to have a significant effect on continuity of sulphide mineralisation in the broader target area.
CHN said that diamond and RC drilling will continue to test high-priority EM conductors and soil geochemical targets. The company said that the RC rig will continue to step-out around known zones of mineralisation. Chalice reported that further drilling along strike and down dip may occur at these and other targets depending on results.
CHN reported that the diamond rig will continue to test key DHEM targets, including a recently identified off-hole conductor on JRC004 that is interpreted to be sourced from massive sulphides. Chalice reported that Down-hole EM surveying will be carried out on the majority of the drill holes to test for off-hole conductors. CHN said that subsequent holes will undergo down-hole EM if required. The company said that the DHEM will continue to be critical in identifying potential targets for follow-up drilling.
Company remains fully funded
Chalice reported that it remains fully funded to continue its systematic exploration programs in Western Australia and Victoria, with a current working capital and investments balance of ~$25 million (~$0.09 per share).