This is a translation from a German publication “Der Goldreport” on Chalice Mining’s MRE update. Some pictures have been omitted.
Chalice Mining Ltd.: New resource calculation for Gonneville
07:42 | Hannes Huster
Chalice Mining seems to be in a hurry to release new reports. Yesterday the new find on the Greenfields target in the state forest, today the 2nd official resource calculation for the Gonneville project.
The new resource calculation shows a 350 million tonne orebody averaging 0.96 g/t 3E (palladium, platinum and gold), 0.16% nickel, 0.10% copper and 0.015% cobalt. 0.58% equivalent reported for nickel or 1.8 g/t grade reported for palladium.
This represents a resource of 11 million ounces of 3E (palladium, platinum, gold) PLUS 560,000 tons of nickel PLUS 360,000 tons of copper PLUS 54,000 tons of cobalt. Again, for the sake of simplicity. The deposit contains a nickel equivalent of 2 million tons (approx. USD 21,500 per ton) or converted into palladium: 20 (!) million ounces of palladium (approx. USD 2,000 per ounce)!!!
So the value of the metals in the ground at current market prices is in the range of $40-43 billion, or A$58-63 billion.
Above all, the new resource calculation shows a strong improvement in quality compared to that of November, with an upgrade of around 90 million tons from the "inferred" to the "indicated" category:
The open pit resource is up 5.20% and the underground resource is up 0.90%. Around 70% of the deposits are now listed in the higher category, which significantly improves the safety and quality of the deposit.
A new presentation with further information has also been published.
Conclusion:
It's a find that only comes around once every few decades, but the striking difference to the very large finds of this type in the past is that the project is only 70-100 kilometers from Perth. Direct access to power, energy, roads and the world's best miners make a significant difference.
With 20 million ounces of palladium equivalent, Chalice has discovered a project that really belongs in the hands of the big PGE producers. The intraday moves yesterday and today were "weird". With very high volume, initial profits were always decimated as the trade progressed. Around 11.4 million shares were recently sold short, which could have something to do with it.
© Hannes Huster
Source: Excerpt from the market letter "The Gold Report"
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