Chalice Mining reports high-grade Kestrel copper-gold discovery at Warrego North

what happened

Chalice Mining has announced a high-grade copper-gold discovery at its wholly owned Warrego North project in the Tennant Creek Mineral Field of Australia's Northern Territory, according to smallcaps.com.au. In the first reverse circulation drilling program, a 15-metre interval returned 8.6 grams of gold and 0.54% copper per tonne, including 2 metres at 56.7 grams of gold per tonne.

Copper mineralisation has been traced across roughly 500 metres of strike, and the system remains open along strike and at depth. The new zone sits about 20 kilometres west of the former Warrego mine, which historically produced around 1.3 million ounces of gold and 91,000 tonnes of copper. The company has expanded its tenure and plans a ground gravity survey, further drilling and geochemical studies.

why it matters

For the broader market this is a local exploration result: the discovery is still at the first-pass drilling stage and no resource has been estimated. Its effect on global gold and copper prices is limited, but the news matters for Chalice Mining investors and highlights the potential of a district where Pan African Resources is studying redevelopment of the old mine.

market impact

Gold and copper: an early-stage exploration result with limited effect on global metal prices; the main interest is in Chalice Mining shares.

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