Chalice Mining Limited provided an update on exploration activities at its 100%-owned Julimar Nickel-Copper-Platinum Group Element (PGE) Project, located 70km north-east of Perth in Western Australia. Exploration has continued across the >26km long Julimar Complex, extending from the Gonneville deposit at the southern end (which hosts the maiden Mineral Resource Estimate (Resource) of 330Mt at 0.94g/t Pd+Pt+Au (3E), 0.16% Ni, 0.10% Cu, 0.016% Co, through to the Hartog, Jansz and Torres target areas at the northern end of the complex. Five RC/diamond rigs are currently continuing step-out, infill and metallurgical drilling at Gonneville.

This drilling has extended the high-grade sulphide zones to the south-west and north-west and is expected to upgrade the confidence level in shallow areas of the Resource currently in the Inferred category. Importantly, sulphide mineralization has now been extended up to 400m below the limit of the Gonneville Resource pit shell. Two diamond rigs are currently progressing the first-ever exploration drill program within the Julimar State Forest within the 6.5km x 2.0km Hartog area immediately north of Gonneville.

Current permit restrictions have limited drilling locations to existing tracks, hence only lower priority targets have been tested to date. The company is awaiting feedback in relation to the permitting restrictions in the coming weeks before moving to the higher-priority EM/gravity/soil targets. Four holes have been completed to date at Hartog, with all assays pending.

A total of 70 drill sites are planned to be tested across the Hartog-Dampier area with drilling expected to continue and accelerate over the coming months as the geological model continues to be refined and permits are obtained for off-track drilling locations. One aircore (AC) rig is currently continuing initial shallow reconnaissance drilling at the Jansz and Torres targets, 17km and 21km north-east of Gonneville. This program is designed to determine the presence of any intrusive mafic-ultramafic geology and define targets for deeper follow-up drilling.

New assay results have been received for 78 RC/diamond holes at Gonneville, which were not included in the maiden Resource published in November 2021. Assay results are pending for a further 55 completed drill holes at Gonneville and Hartog, with laboratory turnaround times currently averaging approximately eight weeks. Gonneville extensional drilling results: Drilling outside the Gonneville Resource pit shell continues to intersect broad intervals of sulphide mineralization and extend the high-grade sulphide zones up to 400m beyond the limit of the current Resource pit shell.

Significant new high-grade (>0.6% NiEq) sulphide results include: 16m at 2.9g/t Pd, 0.6g/t Pt, 0.4g/t Au, 0.1% Ni, 0.1% Cu, 0.01% Co (1.5% NiEq) from 448m (JD225); 14.8m at 3g/t Pd, 0.5g/t Pt, 0.1g/t Au, 0.2% Ni, 0.1% Cu, 0.01% Co (1.5% NiEq) from 545m (JD232); 3.7m at 7.3g/t Pd, 1.2g/t Pt, 0.7g/t Au, 0.6% Ni, 1% Cu, 0.04% Co (4.5% NiEq) from 429.3m (JD232); 21m at 0.9g/t Pd, 0.2g/t Pt, 0.2% Ni, 0.1% Cu, 0.02% Co (0.7% NiEq) from 295m (JD224); 13m at 1.7g/t Pd, 0.4g/t Pt, 0.1g/t Au, 0.2% Ni, 0.1% Cu, 0.01% Co (1% NiEq) from 412m (JD227); 14m at 1.5g/t Pd, 0.5g/t Pt, 0.2g/t Au, 0.1% Ni, 0.1% Cu, 0.01% Co (0.9% NiEq) from 523m (JD232); 17m at 0.8g/t Pd, 0.1g/t Pt, 0.1g/t Au, 0.1% Ni, 0.4% Cu, 0.01% Co (0.7% NiEq) from 430m (JD201); 15m at 1.1g/t Pd, 0.4g/t Pt, 0.1g/t Au, 0.2% Ni, 0.1% Cu, 0.01% Co (0.8% NiEq) from 277m (JD182); 12m at 0.9g/t Pd, 0.2g/t Pt, 0.3% Ni, 0.1% Cu, 0.03% Co (0.8% NiEq) from 465m (JD182); 10m at 1.4g/t Pd, 0.2g/t Pt, 0.2% Ni, 0.1% Cu, 0.02% Co (0.9% NiEq) from 324m (JD224); 10m at 1.3g/t Pd, 0.3g/t Pt, 0.2% Ni, 0.1% Cu, 0.02% Co (0.8% NiEq) from 299m (JRC445); 12m at 0.9g/t Pd, 0.2g/t Pt, 0.1% Ni, 0.1% Cu, 0.01% Co (0.6% NiEq) from 396m (JD220); 9m at 0.9g/t Pd, 0.2g/t Pt, 0.2% Ni, 0.1% Cu, 0.02% Co (0.7% NiEq) from 229m (JRC445); 5m at 1.4g/t Pd, 0.4g/t Pt, 0.2g/t Au, 0.1% Ni, 0.4% Cu, 0.01% Co (1.1% NiEq) from 424m (JD197); 6m at 0.9g/t Pd, 0.1g/t Pt, 0.1g/t Au, 0.1% Ni, 0.5% Cu, 0.01% Co (0.9% NiEq) from 481m (JD204). JD220 was drilled as a 120m step-out hole targeting a strong EM conductor down-dip of the high-grade G2 zone. JD220 intersected broad intervals of dolerite near the target depth and only moderate mineralization which did not explain the EM conductor.

However, follow up wedge hole JD220W1 intersected a broad zone of mineralization, 65m to the south-west of JD220, including: 2.2m of matrix sulphides from 661.6m; 5.2m of matrix to massive sulphides from 667.9m; and 3.4m of matrix to massive sulphides from 677.4m including 0.9m of massive chalcopyrite. A second wedge hole JD220W2 intersected 5.4m of heavily disseminated to massive sulphides approximately 75m to the south of JD220. All assays are pending for the two wedge holes.

This is the first time that massive chalcopyrite has been observed at Gonneville and is an encouraging indication of the potential for further higher-grade mineralization at depth. As such, wide-spaced step-out drilling continues in this area to define the limits of the mineral system. JD182, another key step-out hole north-west of Gonneville, has intersected several high-grade zones of sulphide mineralization outside the current Resource pit shell.

In light of this, additional drilling is planned in this northern part of Gonneville, as high-grade zones have the potential to significantly deepen the Resource pit shell in this area. Gonneville infill drilling results: Infill drilling within the Gonneville Resource pit shell (9 Nov. 2021) has continued to deliver results in line with expectations.

New high-grade (>0.6% NiEq) sulphide results include: 25m at 2.4g/t Pd, 0.4g/t Pt, 0.7g/t Au, 0.2% Ni, 1.1% Cu (2.1% NiEq) from 67m (JD203, G6); 14.5m at 7.5g/t Pd, 0.9g/t Pt, 0.3g/t Au, 0.2% Ni, 0.3% Cu (3.5% NiEq) from 376.3m (JD227, G11); 28m at 1.4g/t Pd, 0.4g/t Pt, 0.1g/t Au, 0.2% Ni, 0.4% Cu, 0.02% Co (1.1% NiEq) from 97m (JD203, new zone); 26m at 1.5g/t Pd, 0.3g/t Pt, 0.4% Ni, 0.2% Cu, 0.03% Co (1.2% NiEq) from 73m (JD227, G7); 5.2m at 8.2g/t Pd, 1.0g/t Pt, 0.1g/t Au, 1.6% Ni, 1.1% Cu, 0.1% Co (5.9% NiEq) from 265.8m (JD194, G2); 9.3m at 1.7g/t Pd, 0.3g/t Pt, 0.4g/t Au, 0.2% Ni, 0.5% Cu, 0.02% Co, (1.4% NiEq) from 159m (JD234, G6); 9.5m at 1.6g/t Pd, 0.3g/t Pt, 0.3g/t Au, 0.1% Ni, 0.4% Cu (1.2% NiEq) from 180m (JD234, G7); 8.2m at 3.1g/t Pd, 0.5g/t Pt, 1.1% Ni, 0.9% Cu, 0.07% Co (3.2% NiEq) from 142.8m (JD228, G8).