The Chalice Gold Mines Limited (ASX: CHN) share price is up 28.5% in late afternoon trading. This comes after the company released positive results from an airborne electromagnetic (AEM) survey in its 100%-owned Julimar Project in Western Australia.
Chalice's shareholders have largely been celebrating all year. Despite the share price falling 47% during the wider COVID-19 market selloff in February and March, year-to-date the Chalice share price is up a whopping 804%. And any investors who bought shares at the 16 March lows will be sitting on a gain of 1,256%.
By comparison, the All Ordinaries Index (ASX: XAO) is down 12% in 2020.
What does Chalice Gold Mines do?
Chalice is an Australian gold and mineral exploration company based in Perth, Western Australia. The company has a portfolio of large, precious and base metal projects in premier locations across Australia.
Chalice holds the 100%-owned Pyramid Hill Gold Project in Victoria's under-explored northern Bendigo gold district. The company also is exploring for nickel at its King Leopold Nickel Project in WA's frontier Kimberley region.
Its 100%-owned Julimar Nickel-Copper-PGE Project is located north-east of Perth on private land and state forest. Chalice staked the project in early 2018 as part of its global search for high-potential nickel sulphide deposits.
What did Chalice's airborne survey reveal?
This morning, Chalice reported its helicopter-borne low frequency electro-magnetic (EM) survey outlined three new extensive EM anomalies at its Julimar project.
Airborne EM is often the first step to detecting shallow conductive sources, such as nickel sulphide mineralisation.
Of the three anomalies, the highest priority target is the Hartog EM Anomaly. This extends for approximately 6.5 kilometres in the same region where Chalice made a significant greenfield PGE-Ni-Cu-Co discovery in March.
The company is fully-funded with $46 million in cash as at 30 June. It has 4 rigs continuing the resource drill with assay results due on 50 holes.
Chalice managing director Alex Dorsch said:
We have speculated for some time that the area north of our recent Gonneville discovery is highly prospective. We have now supported that claim with major new, laterally extensive geophysical targets from the first airborne EM survey over the company's granted tenure, which is a very exciting and important development…
We are expecting initial feedback shortly regarding access to the state forest for the next stage of reconnaissance exploration activities. We are hopeful of being able to assess the compelling new anomalies and aim to expand Julimar into a district-scale, multi-discovery opportunity.
With today's share price surge in mind, investors are clearly expecting Chalice to be granted access to the state forest, as well as some positive drill results.
