CHN - Chalice Mining

[Sean K]

A testing time, a close above ~5.25 would seem significant.
The 3.50 level was probed 3 times and met enough buying support. Nice rounding shape off this September test of support. But general market always a caution too.

Held

Daily
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Yep, resistance at $5.20. Looks like a bottom at $3.50 ish. Not many deposits in the World with 2Mt NiEq. Once BHP have cleaned up OZL I reckon they'll come sniffing here.

 

[finicky]

Once BHP have cleaned up OZL I reckon they'll come sniffing here.

That would be fantastic.

 

[Sean K]

This looks very good. I mean, it doesn't actually have to get bigger in my opinion, but adding another significant high grade sulphide area would be outstanding. If this keeps going at depth into the shadowed area they think it's going to extend to it could double. Not sure about Hartog yet.

 

[TechnoCap]

This looks very good. I mean, it doesn't actually have to get bigger in my opinion, but adding another significant high grade sulphide area would be outstanding. If this keeps going at depth into the shadowed area they think it's going to extend to it could double. Not sure about Hartog yet.

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great news for sure further enhancing the attention of this company. This deposit may deliver DEV with greater hope of substantial deposits within their tenement

 

[finicky]

CHN teasing at the zone at $5 again.
The grades they come out with always seem underwhelming to me but more geological types like Keith Goode @Eagleresa on twitter seem very ok with it - he hasn't commented on today's results btw.
At the company meeting they have dangled the prospect again of a 'minority' partner(s) for development of Gonneville - my fantasy was that they'd flog off Gonnneville for cash, shares and a royalty and keep maybe100% of Julimar exploration tenements to the north.

 

[Sean K]

CHN teasing at the zone at $5 again.
The grades they come out with always seem underwhelming to me but more geological types like Keith Goode @Eagleresa on twitter seem very ok with it - he hasn't commented on today's results btw.
At the company meeting they have dangled the prospect again of a 'minority' partner(s) for development of Gonneville - my fantasy was that they'd flog off Gonnneville for cash, shares and a royalty and keep maybe100% of Julimar exploration tenements to the north.

It's a combo of the grade and width which is very good. Around 1% NiEq is OK, but >100m widths are excellent intersections. Would be nice if they converted it into AuEq g/t for us. I think the 3E is pretty close to gold g/t.

 

[Sean K]

CHN teasing at the zone at $5 again.

Might be through now, unless there's a market correction.

Expecting a Scoping Study in December. Maybe a strategic partner is waiting on that or the PFS next year before taking over development.

Are you free carried on this now finicky? What's your plan?

 

[finicky]

@Sean K Plan ... what's that?
I am thinking about selling the 2,000 or so that I picked up through the spp @ 3.75. Just to add to cash position for a possible crash.
Yes, easily free carried, bought at 0.145 not counting the spp and have sold half along the way at various prices beginning 1.50. I am not sure at all that it's through resistance and on its way as I see that as around 5.25 and then there'd need to be confirmation unless I were willing to take a punt. Chart looks constructive and if it does get through I'm suspecting 6.50 as one reasonable target? Assumes no wider market interference of course and that's a big if.

 

[Sean K]

@Sean K Plan ... what's that?
I am thinking about selling the 2,000 or so that I picked up through the spp @ 3.75. Just to add to cash position for a possible crash.
Yes, easily free carried, bought at 0.145 not counting the spp and have sold half along the way at various prices beginning 1.50. I am not sure at all that it's through resistance and on its way as I see that as around 5.25 and then there'd need to be confirmation unless I were willing to take a punt. Chart looks constructive and if it does get through I'm suspecting 6.50 as one reasonable target? Assumes no wider market interference of course and that's a big if.

If it gets through $5.20 then next stop probably around $6.30 for mine. Market cap starts to get pretty high after $6.30 too for what they're sitting on, unless those extensions at depth point to a much larger resource. Will they deliver an initial NPV in the Scoping Study? Will need to be around the $5b mark to satisfy a $2.5b ish MC I think. Sitting on over $40b of contained metal (and growing), could go much higher I guess.

 

[Sean K]

@finicky I think the (potential) bear market rally is assisting here, but looks ok. Most stocks going well the past few weeks I guess. Downward trends breaking everywhere. MC now around $2.1b without even a scoping study out, due late this month. Going to have to be good to warrant much further gains.

 

[Sean K]

 

[finicky]

Thanks @Sean K that makes the first time I've felt something positive toward Andrew Forrest. I couldn't think of anything to add previously. I got stumped trying to remember why I picked 6.50 as a likely target for this breakout.

 

[Hillman787]

Thanks @Sean K that makes the first time I've felt something positive toward Andrew Forrest. I couldn't think of anything to add previously. I got stumped trying to remember why I picked 6.50 as a likely target for this breakout.

Chn will keep going…I have always said this!! Wait until the scoping study results come back. Hoping for $15 long term.

 

[Sean K]

Chn will keep going…I have always said this!! Wait until the scoping study results come back. Hoping for $15 long term.

Well, $15 is about a $6b market cap on current shares on issue. As you suggest, it might get to that point longer term once in production, but that's several years off and will be diluted through a very large Capex and continued exploration. They are really churning through the cash.

Plus, their plan is to get a strategic partner or JV to take it to production so they won't own all of it. Just how much is the question I guess. I don't think Twiggy will take it to production. Maybe BHP, with large shareholders like Wyloo and Chalice just along for the ride.

The Scoping Study out this month will give us a much better idea of a NPV and potential NAV.

 

[Dona Ferentes]

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There wasn't much of a reaction in the SP , but an interesting story. Mr Forrest would be feeling smugly confident now iron ore is comfortably back above US$100 (c'mon China, get out of lockdown) that he'd have the readies.

Not so sure that BHP would make a move, but what'd I know.

 

[Sean K]

There wasn't much of a reaction in the SP , but an interesting story. Mr Forrest would be feeling smugly confident now iron ore is comfortably back above US$100 (c'mon China, get out of lockdown) that he'd have the readies.

Not so sure that BHP would make a move, but what'd I know.

Was up over $6 on open but pulled back on the day. It's run pretty hard since late Oct so wouldn't be surprised with further pullbacks to around the $5.20 support perhaps.

The only reason I think BHP is due to their future facing metals push and the scale. This will end up being a 20-30 year asset. While Ni is just part of the metal mix in the deposit it could be tacked onto their Nickel West business.

 

[finicky]

Havent listened yet so can't offer a precis, but should be interesting to floowers of LTR, DEV or CHN.

Prospector to Company Making Battery Mineral Discoveries: Tim Goyder Chair of Liontown, DevEx and former Chair of Chalice Mining.​

Episode 22: Tim Goyder, Chair Of Liontown Resources & DevEx Resources | Euroz Hartleys

What an opportunity we have in this episode to spend some time with our very special guest, Western Australian Entrepreneur, 40 plus year prospector,

www.eurozhartleys.com

 

[Sean K]

This is promising, but not blow your socks off. Perhaps if the section in the red box keeps producing 1% NiEq type hits with the occasional 11g/t 3E it might turn into something. Probably dips to the WNW like Gonneville.

Testing 6 bucks again, 5.25 should now be support.

 

[Sean K]

They are tarting this announcement up, but all I read was a delay in the Scoping Study to late Q1 23.

Yeah, it's a complicated resource, but you've got a million people working on it. Looks like a bunch of excuses and they don't quite know how to develop it to me.

 

[Sean K]

Market spooked by the delay in the SC and exactly why. Lost a bit of confidence I reckon. Sure, the additional significant drill results at depth will add to some inferred material to be added to the next MRE, maybe significantly, but the met work sounds dodgy to me.

I would like to think it was just because it had hit a resistance zone and traders took some profits, but not impressed.