Chalice Mining Ltd (ASX: CHN) has recently become a focal point for analysts at Bell Potter, who are optimistic about the mineral exploration company's growth prospects. According to the brokerage firm, CHN is currently undervalued, and there is substantial upside potential at its current trading levels.


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Strong Drill Program Results


Bell Potter's optimism stems from the positive results of Chalice Mining's ongoing drill programs at the Gonneville Ni-Cu-PGE project in Western Australia. The recent findings have confirmed high-grade extensions, reinforcing the possibility of high-grade underground mining. This development provides Chalice Mining with valuable flexibility in its project development strategies, potentially leading to a smaller scale, higher-grade starter operation.


Key Milestone Achieved


One significant development that has caught Bell Potter's attention is Chalice Mining's successful acquisition of all the necessary approvals to commence the next phase of exploration drilling. This phase will cover the entire >30km strike length of the interpreted Julimar Complex. The brokerage firm sees this as a crucial milestone that Chalice Mining had been anticipating for several months, marking a major positive for the company.


Positive Catalysts: High-Grade Results and Resource Growth


Bell Potter believes that the potential for exploration work to yield high-grade results and demonstrate significant resource growth serves as a positive catalyst for Chalice Mining's share price. The ongoing exploration efforts, coupled with the recently achieved approvals, are seen as factors that could drive the company's growth in the near future.


Projections and Price Target


Maintaining a speculative buy rating on CHN, Bell Potter has set an ambitious $5.40 price target for the ASX 200 share. With the current share price at $1.71, this projection implies a substantial upside of 215% over the next 12 months. Investors stand to benefit significantly if Chalice Mining can deliver on its exploration potential and project development plans.


Potential Gains for Investors


In practical terms, if Bell Potter's projections materialize, an investment of $10,000 in Chalice Mining today could potentially grow to approximately $31,500 by 2024. This highlights the magnitude of the potential gains that investors may reap if the company's growth trajectory aligns with the broker's optimistic outlook.


Chalice Mining's Path Forward


Bell Potter sees Chalice Mining as an attractive investment opportunity with the potential for significant growth. The analysts express confidence that Chalice Mining's exploration activities could substantially expand the PGE-Ni-Cu mineralization at Julimar. The envisioned outcome positions Julimar as a globally significant and strategic deposit and production operation in the PGE-Ni-Cu market.


In summary, Bell Potter's bullish outlook on Chalice Mining emphasizes the company's positive exploration results, achieved milestones, and the potential for substantial growth in the coming years. Investors are urged to monitor Chalice Mining's progress as it navigates its path forward in the mineral exploration landscape.