Chalice Mining Ltd (ASX:CHN, OTCQB:CGMLF) is honing in on a possible 1.6-kilometre extension to its polymetallic Gonneville deposit, part of the iconic Julimar Nickel-Copper-Platinum Group Element (PGE) Project in WA.
A 2D seismic survey over Gonneville’s Hartog prospect highlighted the potential plunge extension, which could span around 1.6 kilometres to the northwest and roughly 500 metres below the surface.
Given the sulphide-rich nature of Julimar’s Gonneville intrusion, this extension could substantially expand the deposit to this point and even beyond.
Now, Chalice plans to take to the soil with a step-out drill campaign, wherein it hopes to validate the survey’s seismic interpretation.
Exploration underway
Looking beyond Hartog, drilling at the nearby Dampier target has unearthed widespread sulphide mineralisation, indicating a fertile mineral system roughly 10 kilometres north of Gonneville.
Some of the best results include:
- 9.6 metres at 0.2 g/t palladium, platinum and gold, 0.4% nickel, 0.2% copper and 0.03% cobalt (around 0.7% nickel equivalent) from 203 metres, including 4.2 metres at 0.3 g/t palladium, platinum and gold, 0.6% nickel, 0.3% copper and 0.05% cobalt (roughly 1.1% nickel equivalent) from 208.4 metres; and
- 41.6 metres at 0.5 g/t palladium, platinum and gold, 0.1% nickel, 0.1% copper and 0.01% cobalt (around 0.4% nickel equivalent) from 63 metres, including 4 metres at 1.7 g/t palladium, platinum and gold and 0.1% nickel (roughly 0.6% nickel equivalent) from 64 metres.
Altogether, 27 planned sites are yet to be drilled across the 10-kilometre Hartog-Dampier strike length, with testing of the northwest Gonneville extension and Hann-Hooley area prioritised.
Four diamond and three resource definition drill rigs are in operation across the complex.
Scoping study in the works
Beyond exploration at Gonneville, Chalice is also weighing up its development options in a key scoping study.
The assessment, based on CHN’s July mineral resource, evaluates both a small, starter mine concept and a larger, bulk operation at the deposit.
Given the size, variability and growth potential of the Gonneville resource, alternative development scenarios on the cards include:
- open pit and underground mining;
- two potential processing flowsheets; and
- a broad range of processing plant throughputs and concentrate production rates.
As a result, the scoping study’s release has been rescheduled to late 2022, giving independent contractors enough time to review the study.
Coming up
As Chalice’s story unfolds at Gonneville, the company is dedicated to advancing development studies in parallel with exploration across the full 30-kilometre extent of the Julimar Complex.
CHN has also commenced discussions with several potential strategic technical and funding partners on the Gonneville starter mine.
In the meantime, the company continues to work on:
- resource definition and extensional diamond drilling at Gonneville, where two rigs are currently active;
- detailed infill resource definition drilling to improve the understanding of the short-range variability and continuity of higher-grade zones;
- reconnaissance diamond drilling across the HartogHooley-Hann-Dampier targets, employing four drill rigs;
- moving loop electromagnetic and downhole electromagnetic surveys across the Julimar Complex;
- access discussions for the Bindoon Training Area, which covers the high-priority Flinders Target (NYSE:TGT);
- mine development studies to support a scoping study for the initial development stage of the Gonneville deposit; and
- baseline surveys of groundwater, surface water, flora, fauna and dieback.