Chalice eyes project partner for Julimar

Chalice Mining says it is considering a strategic minority partner for its Julimar polymetallic project, noting significant interest in its flagship asset following the passing of the Inflation Reduction Act in the US.

The Alex Dorsch-led company said on Wednesday it would consider selling a minority stake in Julimar to a partner with the technical expertise, market familiarity and financial strength to assist in developing a mine focused on its Gonneville deposit.

Shares in Chalice soared in early 2020 when it announced a major polymetallic discovery at Julimar just 70km north east of Perth and followed it up late last year with a maiden resource for the deposit, describing it as the biggest nickel sulphide discovery in 20 years and the biggest platinum-group-elements find in Australian history.

Chalice said several big international trading houses, downstream battery and auto manufacturers had expressed interest in Julimar, with the recent Inflation Reduction Act in the US resulting in a significant increase in in-bound interest in Julimar’s large nickel sulphide endowment.

The IRA offers incentives for US manufacturers to source materials specifically from trusted international partners with Free Trade Agreement status, like Australia.

“At this stage, discussions with potential partners are preliminary in nature and the company is focused on delivering the scoping study for a Gonneville in late 2022,” Chalice said in a statement.

The news came as the company released more positive drilling results from Julimar, which it said confirmed the northern extension of the Gonneville Intrusion.

It said the extension of the deposit was offset about 650m west-north-west by a fault, which explained recent disappointing drilling results at its Hartog prospect.

Chalice shares were up 18.5¢, or 4.7 per cent, to $4.155 at 12.10pm.