Why did the Chalice Mining share price leap 10% on Tuesday?

This ASX mineral explorer had a good day on the market.

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Key points
  • Chalice Mining shares soared nearly 10% today
  • The nickel price lifted nearly 7% on commodity markets
  • The S&P/ASX 200 Materials Index (ASX: XMJ) also rose 0.5% on Tuesday

The Chalice Mining Ltd (ASX: CHN) share price had a Tuesday to remember.

The mineral explorer's share price closed 9.81% higher to $4.59. For perspective, the S&P/ASX 200 Index (ASX: XJO) gained 0.65% today.

Let's take a look at what could be impacting the Chalice Mining share price.

a man in a high visibility vest and hard hat holds a thumbs up at a mine site with heavy equipment in the background.

Image source: Getty Images

What's going on?

Chalice Mining is exploring nickel, copper, gold, cobalt, and platinum group elements (PGE) at the Julimar Project in Western Australia.

Today, the nickel price lifted 6.87% to US$24,536.5 a tonne, Trading Economics data shows. Gold prices also gained 0.7% after the US dollar fell from its record high while copper prices increased 1.3%.

The S&P/ASX 200 Materials Index (ASX: XMJ) also lifted 0.5% today.

As well, news from Chalice Mining's joint venture partner Venture Minerals Ltd (ASX: VMS) may have fuelled investor optimism.

The two are developing the South West nickel-copper-PGE project in Western Australia.

Today's news from Venture related to its nearby 100%-owned Kulin project. Venture confirmed the project is prospective for magmatic nickel and copper sulphide. The company said it has commenced an AEM survey along "two highly prospective ultramafic intrusive complexes" that sit along strike of the belt that hosts Chalice's project.

The Venture Minerals share price finished the day flat after jumping nearly 4% in earlier trade.

Meanwhile, today Chalice advised the UBS Group ceased to be a substantial holder of Chalice Mining shares on 8 September.

Share price snapshot

The Chalice Mining share price has fallen 31% in the past year, while it has dropped 52% year to date.

For perspective, the ASX 200 has lost 5.6% in the past year.

Chalice has a market capitalisation of about $1.7 billion based on its current share price.

Motley Fool contributor Monica O'Shea has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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