As was noted by Macquarie yesterday, Chalice Mining has communicated the latest round of drilling results at Julimar with intersections confirming mineralisation circa 400m below the open pit resource at the Gonneville deposit.
The broker welcomes the results and believes an upgrade to the inferred resource at the project is in the making. In addition, the broker notes early stage work has identified a new exploration target, which has a similar lens shaped magnetic feature to Gonneville.
The new target has been named Flinders and has now been elevated to high priority for drilling.
Macquarie also points out the Hartog target in the Julimar State Forest essentially remains untested, as the company has yet to be able to establish drilling platforms that will enable drill testing of the main target areas.
The broker has not made any changes to forecasts. Outperform rating and $10.55 target price retained.
Sector: Materials.
Target price is $10.55.Current Price is $7.57. Difference: $2.98 – (brackets indicate current price is over target). If CHN meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges – negative figures indicate an expected loss).
