Chalice Mining is looking to add another 1600 square kilometres to its tenure at the Julimar project near Perth.
It will do this through an earn-in with Northam Resources, whereby Chalice can earn up to a 70 per cent stake in Northam’s licences located 35km east of the Gonneville deposit.
Chalice has identified geological similarities between Northam’s tenements and Gonneville, which was an Australian-first discovery when Chalice intersected shallow high-grade nickel-copper-platinum group elements (PGE) mineralisation at the deposit in March 2020.
In particular, Northam’s tenure is considered to be highly prospective for magmatic nickel-copper-PGE sulphides.
Chalice has paid Northam $150,000 up front as part of the earn-in, with $100,000 refundable if due diligence conditions are not met.
A further $2.45 million will be paid to Northam in cash or Chalice shares upon satisfaction of due diligence. Chalice will then need to spend $7 million on exploration over four years to earn a 51 per cent interest in the tenements.
Chalice can earn an additional 19 per cent interest by spending $10 million on exploration across a further four years and paying Northam an additional $1 million in cash or Chalice shares.
Chalice will have a dual focus at the Northam project, by simultaneously exploring known targets and using the company’s proven exploration approach in the region to unlock more deposits.
“Given the project is contiguous with Chalice’s existing West Yilgarn tenure, exploration activities can commence immediately,” Chalice said. “Several land access agreements are already in place over key target areas which allow for non-ground disturbing exploration and access for drilling.”
Chalice will follow up already identified early-stage targets with surface geochemistry and ground electromagnetic (EM) surveys in the second half of the year. Initial drill testing would then take place in late 2023 or early 2024.
Subscribe to Australian Resources & Investment and receive the latest news on commodity prices, resource developments, executive movements and more.