Chalice Gold Mines (ASX:CHN,TSX:CXN) announced plans to acquire the Ruins nickel sulfide project in Western Australia’s Kimberley region.
Chalice Gold Mines (ASX:CHN,TSX:CXN,OTC Pink:CGMLF) announced plans to acquire the Ruins nickel sulfide project in Western Australia’s Kimberley region.
The asset is adjacent to Buxton Resources’ (ASX:BUX) Merlin project, where Independence Group (ASX:IGO) recently announced option/earn-in joint ventures.
As quoted in the press release:
- Project considered highly prospective for high-grade nickel sulphide mineralisation, with several late-time airborne EM targets already identified and associated with Ruins Dolerite.
- The Ruins Project will be amalgamated into Chalice’s new district-scale ~1,800km2 King Leopold Nickel Project.
- Airborne and ground EM work to commence immediately, with drilling anticipated in Q3 2019.
- Chalice’s strong A$21.7 million cash balance (at 31 March 2019) and significant internal nickel expertise will allow it to progress comprehensive exploration programs in 2019.
- Nickel market outlook exceptionally strong, driven by electrification across multiple industries and increasing demand for class-1 nickel for use in lithium-ion batteries.
Alex Dorsch, managing director of Chalice, commented:
Over the past few years, we have searched globally for high-quality nickel sulphide projects with grade and scale potential, and what we see in the NWN portfolio excites us. The outlook for nickel is exceptionally strong, and there are very few advanced nickel sulphide projects out there to satisfy rapidly growing class-1 nickel demand.
The Ruins Project is an ideal, drill-ready entry point into the King Leopold Orogen, which hosts new high-grade nickel sulphide discoveries. The presence of outcropping Ruins dolerite and co-incident EM targets along strike from Merlin immediately drew our attention, and we intend to commence drill testing these targets as soon as possible.
The recent entry by IGO into this largely unexplored province and the substantial ramp-up of exploration activity is a sign that this area is primed for new high-grade nickel sulphide discoveries. The May-to-December field season in this region is also expected to work very favourably with ongoing exploration activities at our flagship Pyramid Hill Gold Project in the Bendigo region of Victoria.