The Chalice Mining Ltd (ASX: CHN) share price has been a strong performer on Wednesday.
In early trade, the mineral exploration companyâs shares rose as much as 10% to $5.11.
The Chalice share price has pulled back a touch since then but remains up 6% at $4.92.
Why is the Chalice Mining share price surging?
Investors have been scrambling to buy the companyâs shares this morning following the release of drilling results from the Julimar Ni-Cu-PGE Project in Western Australia.
According to the release, exploration activities are continuing across the >30km long Julimar Complex, with two diamond drill rigs currently drilling across the 10km long Hartog-Baudin strike length and four rigs continuing resource drilling at the Gonneville deposit.
The good news is that recent drilling demonstrates the potential for material resource growth at Julimar, with several outstanding new intersections up to 650 metres beyond the current resource.
One of the holes, named HD042, intersected a significant interval in Gonneville-type ultramafic geology. Management believes this is a âhighly encouraging resultâ and confirms the prospectivity of the Hartog Intrusion and demonstrates that it is a continuation of the Julimar Complex.
The company advised that access to additional drill sites to adequately test this offset part of the Julimar Complex is anticipated in the coming weeks. Systematic drilling into Hartog will then commence at a step-out of ~1.6km north of the current resource.
What else is on the horizon?
It looks set to be a busy period for Chalice with a number of activities on the go at Julimar.
This includes access discussions for the Bindoon Training Area which covers the high-priority Flinders Target, ~25km north east of Gonneville.
In addition, mine development studies to support a scoping study for a mine at Gonneville on farmland is targeted for completion in late 2022.
If these activities deliver positive outcomes, it could give the Chalice Mining share price a much-needed boost. Despite todayâs gain, it remains down almost 45% in 2022.
The post Why is the Chalice Mining share price surging 10% on Wednesday? appeared first on The Motley Fool Australia.
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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.
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