Why is the Chalice Mining share price up 10% and the best performer on the ASX 200 today?

Chalice Mining's shares are leading the way on the ASX 200 on Wednesday…

| More on:
A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Chalice Mining shares are jump on Wednesday
  • This follows a positive update on its world class Julimar project
  • The company also revealed strategic interest in its nickel deposit

The Chalice Mining Ltd (ASX: CHN) share price is having a day to remember.

In afternoon trade, the mineral exploration company's shares are up 10% to $4.38.

This makes the Chalice Mining share price the best performer on the ASX 200 today.

Why is the Chalice Mining share price racing higher?

Investors have been bidding the Chalice Mining share price higher today following the release of an update on exploration activities at the Julimar Nickel-Copper-Platinum Group Element (PGE) Project in Western Australia.

According to the release, exploration activities are continuing across the 30km-long Julimar Complex, with four diamond drill rigs currently working across the 10km-long Hartog-Baudin strike length and two rigs continuing resource definition drilling at the Gonneville PGE-Ni-Cu-Co-Au Deposit.

Positively, drilling to date supports the interpretation of the Gonneville intrusion (and Julimar mafic-ultramafic Complex) as having a rare chonolith-like geometry, which is similar to other major ultramafic-mafic orthomagmatic systems worldwide that host significant nickel-copper+/-PGE deposits. These include deposits such as Norilsk-Talnakh, Kabanga and Jinchuan.

Furthermore, Chalice recently made an important breakthrough in its exploration of the project, with the previously elusive northern extension of the Gonneville intrusion interpreted at depth in an effective 2D seismic survey. Previous drilling in this area had failed to intersect the prospective maficultramafic horizon, which drilling has now confirmed to be faulted ~650m to the west-north-west.

This essentially means that a new segment of the Julimar Complex can now be targeted with follow-up drilling, providing a substantial pathway for growth in the resource.

Strategic interest

Also potentially giving the Chalice Mining share price a lift today was news of strategic interest in the project from several large international trading houses, downstream battery, and auto manufacturers.

The release notes that interest in the large nickel sulphide endowment has increased significantly following the passing of the US Inflation Reduction Act (IRA) bill.

As a result, Chalice is currently considering securing a strategic minority joint venture partner (or partners) to assist in developing a potential mine at Gonneville.

Motley Fool contributor James Mickleboro 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.

More on Materials Shares

Group of miners working at a coal mine with one smiling and holding up a piece of coal.
Materials Shares

How much upside does Macquarie project for South32 shares?

Is this miner's luck about to change?

Read more »

A group of miners in hard hats sitting in a mine chatting on a break as ASX coal shares perform well today
Materials Shares

Down but not out: Can these ASX mining shares bounce back?

Here’s what one broker is predicting for Australia’s largest mining companies. 

Read more »

Broker analysing the share price.
Materials Shares

Buy, hold, or sell? Broker's verdict on 3 ASX 200 materials shares

Materials was one of four market sectors that weakened in overall value in FY25.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Materials Shares

Why is this ASX mining stock crashing 14% today?

Let's see what is causing investors to hit the sell button on Monday.

Read more »

Three miners stand together at a mine site studying documents with equipment in the background
Materials Shares

$10,000 invested in BHP shares in FY25 is now worth

Did the Big Australian outperform or underperform during the last financial year?

Read more »

A male investor sits at his desk pondering at his laptop screen with a piece of paper in his hand.
Share Market News

Why did Macquarie just downgrade Liontown resources shares?

Here’s what the broker had to say about this materials company. 

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Materials Shares

Why did Macquarie downgrade Mineral Resources shares?

The broker is no longer bullish on this mining and mining services company.

Read more »

A bricklayer peers over the top of a brick wall he is laying with a level measuring tool on top and looks critically at the work he is carrying out.
Materials Shares

Brickworks shares rise 1% on trading update

Investors seem delighted by a new update from Brickworks.

Read more »