Chalice Mining announced a maiden resource for the Gonneville deposit in November of 330Mt at the Julimar project. Macquarie notes Chalice gained State government approval in late December and this month (January) gained approval for low-impact diamond drilling at the project.
The company also discovered further mineralisation near Hartog.
Meanwhile, the Falcon Metals demerger has been finalised, the company has $65m cash and the commencement of drilling in Julimar this month suggests its full steam ahead.
Outperform rating and $10.55 target price retained.
Sector: Materials.
Target price is $10.55.Current Price is $7.58. Difference: $2.97 – (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).
