Guess which ASX mining stock is surging 8% on big news

Some big news is getting investors excited today. Let's see what is happening.

| More on:
Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.

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

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.

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.

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

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Materials Shares

Down 39% in a year, why IGO shares still look overpriced

A leading expert doesn’t believe IGO shares are out of the woods just yet.

Read more »

Man with rocket wings which have flames coming out of them.
Materials Shares

This ASX 300 stock is surging 25% on US defence deal

The announcement of a 'a pivotal milestone' is getting investors excited today.

Read more »

A happy construction worker or miner holds a fistful of Australian dollar notes.
Materials Shares

$5,000 invested in BHP shares 5 years ago is now worth…

Will its shareholders be happy with their investment? Let's find out.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Materials Shares

Guess which ASX 200 stock is ending the week with a bang thanks to Rio Tinto

This stock has won a major contract from the mining giant.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Materials Shares

Is it time to buy ASX lithium shares?

Lithium prices continue to sink. Has this created a buying opportunity?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Materials Shares

Mineral Resources shares sink on Onslow Iron blow

This miner is having a tough session. Let's find out why.

Read more »

A man sits in a chair hunched over a laptop and covered head to toe in frozen icicles to represent Envirosuite's trading halt
Materials Shares

MAC Copper shares in trading halt as miner flags 'potential control transaction'

MAC Copper shares are frozen while Sandfire Resources shares are the fastest risers of the ASX 200 today.

Read more »

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Materials Shares

Bell Potter says this ASX lithium stock could rise ~50%

The broker has just put a buy rating on this lithium stock.

Read more »