Drilling to target potential shallow extensions adjacent to recently reported high-grade gold hits
| Symbol: ASX: CHNTSX: CXN Shares outstanding: 264 million Fully diluted: 275 million |
Highlights:
PERTH, Western Australia, March 13, 2017 /CNW/ - Chalice Gold Mines Limited (ASX: CHN, TSX: CXN) ("Chalice" or the "Company") is pleased to advise that it has commenced its maiden diamond drilling program at the Company's East Cadillac Gold Project targeting along strike of the Nordeau West gold deposit, for which it recently reported an updated mineral resource estimate (see ASX Announcement – March 7, 2017).
The maiden 2,000m drill program forms part of an expanded exploration program at the East Cadillac Project over the upcoming Spring/Summer field season that will see exploration activities ramp up on several fronts.
A compilation and interpretation of historical exploration data across the project is well advanced and project-wide field activities are expected to commence in mid-April, including an airborne geophysical survey and an expanded surface sampling program including reconnaissance/in-fill sampling and stripping/trenching over defined targets.
The Company has also staked an additional 49.5km2 of contiguous claims, significantly expanding its ground-holding to 107.4km2 to cover further prospective greenstone belt sequences located south of the Larder Lake-Cadillac fault.
Maiden 2,000m Diamond Drill Program
The Company's maiden drill program has commenced, with drilling designed to test shallow gold targets over a 3km strike length of the Larder Lake-Cadillac fault. The targets include extensions of the Nordeau West and Nordeau East deposits and an alteration zone between the Nordeau West and Nordeau East deposits. All targets are located along strike from known gold deposits/occurrences near former tenement boundaries that were not tested due to the fragmented ownership of the historical tenement holdings (Figure 1).
New Claim Staking
Chalice has undertaken additional claim staking for a total of 50.15km2 contiguous with the southern margin of the East Cadillac Gold Project. The newly expanded East Cadillac Gold Project now comprises a total of 107.4km2 (see Figure 2).
Encouraging results from the 2016 surface sampling on claims staked in late 2016 (see below), in conjunction with preliminary results from project compilation work currently in progress, have identified new targets along a potential sub-parallel trend in the Pontiac sediments located south of the previous property boundary.
Surface Geochemical Sampling
A program of geochemical sampling was undertaken in late 2016 over the Nordeau property including surface rock sampling for Au/ICP and whole rock and spectral analysis, core sampling for Au/ICP, Whole Rock and spectral analysis, and surface MMI soil sampling.
A total of 426 soil samples were collected and analysed for Au and pathfinders by the MMI technique (see Figure 3). A total of 28 rock and core samples were analysed for Au using ICP, 2 for Whole Rock, 28 for Short Wave Infrared (SWIR) spectral analysis with a Halo sensor, and 12 samples for petrographic analysis.
The relatively restricted 2016 surface sampling program (Chalice only reached agreement on the Nordeau property in late 2016) delineated Au-Ag-W soil anomalies over the Nordeau East deposit and new, previously unrecognized targets, to the north in the adjacent mafic volcanics, and south of the Larder Lake-Cadillac fault over the Pontiac sediments (see Figure 3).
Chalice is encouraged by the identification of anomalous gold and pathfinder signatures over existing mineralization at Nordeau East and also by the delineation of new targets areas within the highly prospective and underexplored greenstone belt succession. The results validate the Company's belief that surface sampling is a cost-effective tool that can be applied in this district to yield new, high-quality targets.
Chalice will re-commence surface sampling (soil and rock) and extending coverage over the entire project as soon as ground conditions are suitable (anticipated to commence mid-May).
Chalice's Managing Director, Tim Goyder, said: "Our exploration team has identified high priority targets for initial drill testing as we kick off what is shaping up as a very busy summer field season on the East Cadillac Gold Project. Our coordinated and systematic approach to exploration, drawing on the latest techniques and methodologies, is delivering encouraging results and helping to unlock the potential of what remains an under-explored area of the Larder Lake-Cadillac Fault."
Competent Persons and Qualifying Persons Statement
The information in this report that relates to Exploration Results in relation to the East Cadillac Gold Projects is based on information compiled by Dr. Kevin Frost BSc (Hons), PhD, who is a Member of the Australian Institute of Geoscientists. Dr. Frost is a full-time employee of the company and has sufficient experience in the field of activity being reported to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results and is a Qualified Person under National Instrument 43-101 – 'Standards of Disclosure for Mineral Projects'. The Competent Person has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in this release. Dr. Frost consents to the release of information in the form and context in which it appears here.
Forward Looking Statements
This document may contain forward-looking information within the meaning of Canadian securities legislation and forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, forward-looking statements). These forward-looking statements are made as of the date of this document and Chalice Gold Mines Limited (the Company) does not intend, and does not assume any obligation, to update these forward-looking statements.
Forward-looking statements relate to future events or future performance and reflect Company management's expectations or beliefs regarding future events and include, but are not limited to, the estimation of mineral reserve and mineral resources, the realisation of mineral reserve estimates, the likelihood of exploration success, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage.
In certain cases, forward-looking statements can be identified by the use of words such as plans, expects or does not expect, is expected, will, may would, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate, or believes, or variations of such words and phrases or statements that certain actions, events or results may, could, would, might or will be taken, occur or be achieved or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors may include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in mineral resources or ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements, all of which are filed and available for review on SEDAR at sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking statements.
SOURCE Chalice Gold Mines Limited
please contact: Tim Goyder, Managing Director, Chalice Gold Mines Limited, Telephone +618 9322 3960; For media inquiries, please contact: Nicholas Read, Read Corporate, Telephone: +618 9388 1474
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