Chalice Mining Limited (ASX: CHN) has obtained significant results from recent 2D seismic at the Julimar Ni-Cu-PGE Project within the Gonneville deposit located ~70km north-east of Perth in Western Australia.
Exploration
Exploration activities are continuing across the >30km long Julimar Complex, with four diamond drill rigs currently drilling across the 10km long Hartog-Dampier strike length and three rigs continuing resource definition drilling at the Gonneville PGE-Ni-Cu-Co-Au Deposit.
A 2D seismic survey was recently completed over the Gonneville-Hartog area, with results indicating:
The Gonneville Intrusion is interpreted to extend to a depth of ~1km at the Julimar State Forest boundary, well beyond the limit of current Resource drilling
The possible northern plunge extent of the Gonneville Intrusion is interpreted ~1.6km north of the current limit of the Resource.
Management said this is considered an exciting outcome which could materially expand the footprint of the Gonneville Deposit, given that the Gonneville Intrusion has so far proven to be consistently well mineralised.
Drilling at the Hartog Target to date has not tested this extension and, as such, deeper step-out drilling will commence shortly. If confirmed, the Gonneville Intrusion would also remain open further north beyond the northern 2D seismic line.
The seismic interpretation has concluded that the Gonneville Intrusion has a chonolith-like geometry, which is similar to other major ultramafic-mafic orthomagmatic systems worldwide that hosts significant nickel-copper deposits, including Norilsk-Talnakh, Kabanga and Jinchuan.
A total of 28 drill holes have been completed to date at the Hartog, Hooley, Hann and Dampier targets with assays pending for 11 holes (HD018-24, 26, 28-30).
Seven drill holes have been completed at the Dampier Target to date, with drilling intersecting broad intervals of elevated PGEs associated with disseminated sulphides within a ~20-150m wide ‘Gonneville-type’ ultramafic intrusive sequence.
The presence of elevated base metals (Ni, Cu, Co) in localised zones towards the interpreted base of the intrusive is considered highly encouraging. Initial follow-up drilling has focused on testing down-hole EM (DHEM) conductors with results to date indicating only localised zones of sulphide-rich mineralisation.
Further results are required to better quantify the distribution of sulphide mineralisation from this initial programme.
Drilling along strike of Dampier at the Hann and Hooley targets (~3.5km and ~5km south-west) has intersected a similar ultramafic intrusive unit, with broad intervals of disseminated sulphides encountered.
All assays are pending for two completed holes in this area and further drilling is underway to test this large-scale prospective horizon.
A total of 17 diamond drill holes have been completed at the Hartog Target with assays pending for nine completed holes. Drilling has targeted MLEM conductors which have been explained by sulphidic sediments interlayered with basalt and gabbro.
Drilling is now focused on testing the potential northern extension of Gonneville Deposit into the Julimar State Forest.
Chalice’s ongoing exploration drilling programme in the Julimar State Forest is utilising small footprint diamond drill rigs and does not involve any mechanised clearing of vegetation or excavation.
Gonneville Scoping Study
Chalice is continuing work on the Gonneville Scoping Study, based on the updated Mineral Resource Estimate (MRE) completed in July 2022.
- The study is evaluating a smaller ‘starter mine’ concept as well as a larger bulk mine concept, ensuring that a broad range of options are appropriately scoped.
- Given the large size, variability (in terms of both mineralogy and grade) and growth potential of the Resource with further drilling, the study is investigating several alternative development scenarios, including:
- Open pit and underground mining methods (and combinations of both with various mining equipment sizing considerations);
- Two potential processing flowsheets:
Sequential Cu/Ni flotation of higher-grade sulphide mineralisation, producing two products for off-take:
- A Cu-PGE-Au concentrate for sale to copper smelter(s); and,
- A Ni-Co-PGE concentrate for sale to nickel smelter(s). Sequential Cu/Ni flotation, plus Ni concentrate enrichment using a single-stage pressure oxidation process (‘midstream processing’), producing two products for off-take:
- A Cu-PGE-Au concentrate for sale to copper smelter(s); and,
- A Ni-Co Mixed Hydroxide Precipitate (MHP) for sale to battery cathode pre-cursor manufacturers.
- A broad range of processing plant throughputs and concentrate production rates. Due to the complexity of modelling all of these alternatives, ongoing nickel off-take discussions and ongoing skills shortages within the WA resource sector, several of the cases are yet to be modelled. In light of these delays, the Gonneville Scoping Study is now expected to be completed in late 2022.
- Given the strategic nature of the project and scale of the Resource, key work scopes completed by specialist consultants as part of the Scoping Study will be independently reviewed as part of the company’s quality assurance process.
For further information please visit: https://www.chalicemining.com/
