Chalice Mining Ltd (ASX: CHN) shares are catching the eye with a strong gain on Tuesday.
In morning trade, the ASX mining stock is up 8% to $1.33.
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Why is this ASX mining stock jumping?
Investors have been buying the mineral exploration company's shares this morning after it made a big announcement.
According to the release, the Premier of Western Australia and Minister for State and Industry Development, Hon Roger Cook MLA, has awarded Strategic Project status to the company's 100%-owned Gonneville Project under Western Australia's Lead Agency Framework.
The company notes that this provides formal recognition of the strategic value of the project and its potential to deliver significant economic and energy transition benefits for Western Australia and the region.
The ASX mining stock's Gonneville Project is located on Chalice-owned farmland, 70km northeast of Perth. The large scale project has the potential to produce a rare mix of critical and strategic minerals required for decarbonisation and urbanisation, such as nickel, copper, cobalt, palladium and platinum. It is currently in the pre-feasibility stage, with regulatory approvals underway in parallel.
Its approval as a Strategic Project will see the Department of Jobs, Tourism, Science and Innovation (JTSI) provide a high level of project facilitation including for regulatory approvals and infrastructure requirements. This includes environmental approvals being subjected to a streamlined assessment through the new Green Energy Assessment Unit.
Strategic importance
The ASX mining stock's CEO and managing director, Alex Dorsch, was pleased with the news. He said:
Chalice is pleased to receive this formal recognition and support from the Western Australian Government, demonstrating the strategic importance of Gonneville as the first major Platinum Group Element discovery in Australia, and one of the largest critical and strategic minerals projects in the state.
We are grateful for the recognition and JTSI's ongoing case management support. Approval as a Strategic Project under the Lead Agency Framework recognises the greater engagement with all parts of the WA Government as we progress regulatory approvals. It's also pleasing that environmental approvals for the Gonneville Project will be supported by the Green Energy Assessment Unit, created as part of the streamlined approach to the assessment of Green Energy projects announced by Premier Cook late last year.
Should you invest?
The team at Bell Potter continues to see significant value in this ASX mining stock.
Late last month, it put a speculative buy rating and $5.15 price target on its shares. This is materially higher than where they currently trade.
