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Date : 07/12/2022

Chalice Mining Ltd (ASX: CHN) Shares Soar 10% After Positive Drilling Results

Chalice Mining Ltd (ASX: CHN) is an ASX-listed resource company exploring precious and base metal resources. It conducts mineral exploration at the Pyramid Hill Gold Project and the Julimar Nickel-Copper-PGE Project. The Australian-based firm began operations in 2005.

When Chalice Mining published the findings of its drilling at the Julimar Ni-Cu-PGE Project in Western Australia, CHN share price rose by 10%, making it a very successful day for shareholders of CHN.

CHN: FY22 Result Highlight

Chalice Mining ASX shares soar as high as 10% to $5.25 after positive drilling results. The current market cap of the company is around $1.86 Billion.

Chalice Mining Ltd Shares Analysis

Read on for Chalice Mining Ltd Shares News & Analysis:

  1. Chalice announced revenue of $634K, increasing 23% YoY in FY22.
  2. Its operating expense was $65.68 million, increasing by 40%.
  3. The company’s net loss increased 58% to -$18.31 million in FY22.
  4. EPS was $0.18, down 41%.
  5. EBITDA was -$64.63 million in FY22.
  6. At the end of the fiscal year 2022, the company had cash and cash equivalents of $134.53 million.

CHN: What’s behind the sudden uptick in Chalice Mining shares?

With the announcement of drilling data from the Julimar Ni-Cu-PGE Project in Western Australia, investors have been rushing to acquire Chalice Mining ASX shares this morning.

Two diamond drill rigs are now drilling over the 10-kilometre-long Hartog-Baudin strike length, while four rigs are continuing resource drilling at the Gonneville deposit, as stated in the announcement. The Julimar Complex spans more than 30 kilometres.

Recently completed drilling in Chalice mines has shown promising new intersections at Julimar, some extending as far as 650 meters beyond the present resource. Therefore there is hope for a significant resource increase in the future.

HD042, one of the holes, encountered a substantial section of ultramafic rock characteristic of the Gonneville type. Management sees this as a “very positive outcome” since it proves the Hartog Intrusion is a continuation of the Julimar Complex and supports its potential.

The firm has said that in the following weeks, it expects to get access to more drill sites to thoroughly examine this offshoot of the Julimar Complex. A step out to the north of the present resource, around 1.6 kilometres, is where systematic drilling into Hartog will begin.

CHN: What’s Next is Store for Chalice?

This appears to be a busy time for Chalice Mining since many events are happening at Julimar. Discussions on accessing the Bindoon Training Area are included. It includes the high-priority Flinders Target (located about 25 kilometres northeast of Gonneville).

It is anticipated that the mine development studies are necessary to back up the scoping study for a mine at Gonneville on farmland will be finished by the end of 2022.

Assuming these initiatives are fruitful, CHN share price may see a welcome increase. Despite today’s improvement, Chalice Mining ASX shares are still down over 45% from its 2022 high.

Conclusion

Should you add ASX-CHN Shares on your “to buy” list?

Chalice Mining has made investors excited about its latest findings. Investors are now more interested in the future findings the firm claims to attain soon. This has increased the demand for Chalice Mining ASX stock, and as a result, ASX CHN shares surged in the market.

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