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Chalice’s run continues on fresh drilling results

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Stuart McKinnonThe West Australian
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Drilling at Julimar.
Camera IconDrilling at Julimar.

Shares in Chalice Mining stacked on another 8 per cent today after the company pushed back the maiden resource for its Gonneville discovery on the back of a fresh batch of drilling results which yielded more mineralised intersections.

The Tim Goyder-chaired explorer unveiled high-grade drill results for 165 holes including one of 13.4m at 6.3g/t palladium, 1.1g/t platinum, 1.3 per cent nickel, 0.7 per cent copper, 0.07 per cent cobalt from 405.7m.

It said a further 94 core samples were awaiting assays.

Chalice said it had postponed the maiden resource estimate for Gonneville from this quarter to late in the September quarter so it could further define the size of the deposit.

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The company noted it had recently purchased more private land at its flagship Julimar project 70km north-east of Perth, which would allow unfettered access for drilling.

The acquisition, announced to the market on Monday, involved a further four private properties around Gonneville covering about 723ha in exchange for $11.25m in cash and shares.

The fresh batch of high-grade drill results coincided with news that the price of palladium had hit a record high of $US2895.96/oz overnight on bets that rebounding economies will fuel auto-maker demand, deepening supply shortfalls of the precious metal.

Chalice continues to operate seven rigs focused on the resource drill-out at Gonneville, along with reconnaissance exploration and environmental surveys in the Julimar State Forest to the north of the deposit ahead of anticipated drilling in the September quarter.

Its shares, which have been on a tear for the past year on the back of the Gonneville find, closed up 50¢ at a fresh all-time closing high of $6.65.

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