Chalice Gold Mines — Investor Presentation (September 2020)
37 slides from Chalice Gold Mines's investor presentation, Sep 23, 2020
Slide 1: Corporate Presentation – 23 September 2020
Exciting new PGE-Ni-Cu-Co discovery in WA and an emerging gold province in Vic Corporate Presentation – 23 September 2020 ASX: CHN | OTCQB: CGMLF
Slide 2: Forward looking statements and disclosures
Forward looking statements and disclosures This presentation does not include all available Information on Chalice Gold Mines Limited and should not be used in isolation as a guide to investing in the Company. Any potential investor should also refer to Chalice Gold Mines Limited Annual Reports, fil
Slide 3: A unique, well-funded exploration specialist
We have a proven generative model: A unique, well- 1 • Acquire, discover and define mines funded exploration • Progress and divest assets with discipline specialist An excellent track record: • A major greenfield PGE-Ni-Cu-Co discovery in WA 2 • ~A$110M1 generated from asset sales • ~A$36M returned
Slide 4: Australia portfolio: Julimar, Pyramid Hill, Hawkstone
Chalice’s portfolio includes an exciting new discovery in the new West Yilgarn Ni-Cu-PGE Province in WA, as well as two other district-scale projects Julimar Nickel-Copper-PGE Project, WA • New greenfield PGE-nickel-copper-cobalt sulphide discovery 1 • 19m @ 8.4g/t Pd, 2.6% Ni, 1.0% Cu, 0.1% Co in 1
Slide 5: A tight capital structure and a strong financial position
We have a tight capital structure Capital Structure and Financials and a strong financial position Equity listings Shares Out. 307.5M Market capitalisation ASX: CHN Shares (F/D) 325.9M ~A$700M (@ A$2.27ps) Top Shareholders1 OTCQB: CGMLF Tim Goyder (Chairman) Long term holder since 2006 Debt Cash2 Ca
Slide 6: Julimar Nickel-Copper-PGE Project Western Australia
JD006 core specimen at Julimar Ni-Cu-PGE Project, Jun-2020 Julimar Nickel- Copper-PGE Project Western Australia 6
Slide 7: High-grade PGE-Ni-Cu-Co intersected in the very first drill hole at Julimar
High-grade PGE-Ni-Cu-Co intersected in the very first drill hole at Julimar, uncovering a remarkable new discovery in a completely new province • ~1 hour drive NE of Perth, with direct access to major highway, rail, power and port infrastructure • ~26km layered ultramafic-mafic intrusive complex (Ju
Slide 8: The Gonneville Intrusion is a ~1.6km x 0.8km chonolith
The Gonneville Intrusion is a ~1.6km x 0.8km ‘chonolith’ – a favourable geometry for large-scale orthomagmatic sulphide deposits globally Gonneville Intrusion – Magnetic / Gravity Inversion Model, Drilling and new SQUID EM Conductors ~24km of Julimar Complex within State Forest yet to OPEN be explor
Slide 9: Gonneville is an exceptional new PGE-nickel-copper-cobalt discovery
Gonneville is an exceptional new PGE-nickel-copper-cobalt discovery with the potential to deliver a world-class deposit • High-grade massive / matrix sulphide zones: • Up to ~40m wide over a ~400m x ~300m area • Grade range of 3-15g/t PGE-Au, 0.5- 3.3% Ni, 0.4-4.5% Cu, 0.03-0.27% Co • All zones rema
Slide 10: Three high-grade zones recently extended with new wide intercepts
Three high-grade zones recently extended with new wide intercepts, adding significant potential down-dip of G1 and along the footwall contact G1 Zone – the discovery zone: • ~5-40m wide • 400m strike x up to 340m dip • Potentially widening at depth • Open at depth and to the south G2 Zone: • ~40m wi
Slide 11: The four high-grade zones remain open; step-out drilling continues
The four high-grade zones remain open and have significant growth potential; step-out drilling continues on a wide 80m x 80m grid G1 Zone – the discovery zone: • ~5-40m wide • 400m strike x up to 340m dip • Potentially widening at depth • Open at depth and to the south G2 Zone: • ~40m wide • Open to
Slide 12: The high-grade G1 Zone is continuous over ~400m of strike
The high-grade G1 Zone is continuous over ~400m of strike and ~340m of dip extent and hosts shallow Pd-Ni rich sulphides JD002 massive sulphides at ~49.5m (pyrrhotite-pentlandite-chalcopyrite) JD002 matrix/net-textured sulphides at ~90.5m (pyrrhotite-pentlandite-chalcopyrite) 12
Slide 13: The G1 Zone appears to be widening down-dip to the west
The G1 Zone appears to be widening down-dip to the west, and remains open at depth and open along strike to the south G1 Zone specimen samples from JD013 (239-264m) – all assays pending 13
Slide 14: The high-grade PGE-Cu-Au dominant G4 Zone
The high-grade PGE-Cu-Au dominant G4 Zone appears to be associated with the highly prospective footwall contact of Gonneville Intrusion G4 Zone core photos from JD005 (314-321m), ~80m south of JD006 – 10.1m @ 2.9g/t Pd, 0.6g/t Pt, 1.2g/t Au, 0.1% Ni, 1.3% Cu, 0.01% Co 14
Slide 15: Wide PGE-Ni-Cu intervals intersected in every drill hole to date
The wide PGE-Ni-Cu intervals intersected in every drill hole to date indicate the potential for a very large-scale deposit 15
Slide 16: Several large EM anomalies extend north-east of Gonneville
Several large EM anomalies extend to the north-east of Gonneville, all are yet to be tested (access pending) Historical surface sampling over regional magnetics (TMI-RTP) 2020 Airborne EM (channel 15) May 2020 Sept 2020 N 16
Slide 17: Strong demand growth and lack of new supply driving palladium to record highs
Strong demand growth and lack of new sources of supply is driving the critical metal Palladium to record highs The Platinum Group Elements (PGE): Palladium Market • Pd in deficit for nine consecutive years – recent record price of US$2,856/oz reached in Feb 2020 • Demand growth (>11.5Moz in 2019) la
Slide 18: Accelerated drilling and metallurgical testwork program underway
Accelerated drilling and metallurgical testwork program underway – aiming to define a maiden Mineral Resource by June 2021 2020 Jul Aug Sept Oct Nov Dec Julimar Project, WA Access Approvals Julimar State Forest CMP Stage 1 Julimar State Forest Geophysics DHEM Airborne EM Soil Sampling Julimar State
Slide 19: Pyramid Hill Gold Project Victoria
Drilling at Pyramid Hill Gold Project, Oct-2019 Pyramid Hill Gold Project Victoria 19
Slide 20: Why gold in Victoria? The prospect of finding another Fosterville
Why gold in Victoria? The prospect of finding another Fosterville Gold Mine Northern Bendigo Zone (32Moz undiscovered gold endowment) N >60Moz Au produced since 1850’s from outcropping 50km South Bendigo Zone, at a avg grade of ~15g/t Au 90% of mines had a recovered grade >8.5g/t Au Chalice tenure B
Slide 21: Chalice staked a >5,000km2 essentially unexplored land holding
As an early mover, Chalice staked a >5,000km2 essentially unexplored land holding surrounding two world-class gold deposits • The success of Fosterville has attracted significant new players into the district: • Chalice positioned itself early and strategically, with a focus on: • Unexplored, prospe
Slide 22: World-class gold deposits are controlled by regional scale faults
The world-class gold deposits are controlled by regional scale faults, which continue to the north into Chalice’s tenure → follow the strike NSW VIC Northern Four Eagles Bendigo Zone Tandarra Extension of these regional scale faults Fosterville ~9Moz Karri under cover evident Melbourne in regional g
Slide 23: Dispersion of gold and pathfinder metals used to vector towards gold
Dispersion of gold and pathfinder metals such as arsenic and antimony is used to vector towards gold under cover Dispersion footprints of major gold deposits in Vic Our shallow, wide-spaced air- core drilling approach Arsenic (we are close) ~9 Drill Line 1 3-5km Antimony (getting warmer) Line 2 Gold
Slide 24: Chalice has adopted a systematic value-add approach
Chalice has adopted a systematic value-add approach – ‘find the big gold systems first’ • Our Project covers hundreds of kilometres of prospective strike: • Muckleford (>300km) • Mt William (>75km) • Percydale (>40km) • Prior to Chalice most of the area essentially un-drilled • Our regional-scale ac
Slide 25: Initial geological holes confirmed a large gold system at Karri
1. KARRI PROSPECT Initial geological holes have confirmed a large gold system at depth below the >4km long gold trend at the Karri Prospect • Maiden 6 hole diamond program for structure / geology recently completed • First ever test at depth into a ‘blind target’ • All six diamond drill holes inters
Slide 26: Pyramid Hill Gold Project – Karri Prospect
1. KARRI PROSPECT Pyramid Hill Gold Project Karri Prospect AC Drilling over Aerial Imagery August 2020 AC Drilling Max Gold Contours >0.025g/t >0.1g/t >1g/t 26
Slide 27: Initial diamond holes provided a first glance at the geology
1. KARRI PROSPECT The initial diamond holes provided a first glance at the geology and compelling targets for the next phase of diamond drilling 27
Slide 28: So why invest in Chalice?
So why invest in Chalice? The new PGE-Ni-Cu-Co discovery at Julimar in WA 1 has significant scale potential and has opened up a new mineral province – resource drill-out underway Early exploration at the Pyramid Hill Gold Project in Vic 2 has identified exceptional scale targets, close to Fostervill
Slide 29: Thank You
Thank You Level 2, 1292 Hay Street, West Perth WA 6005, Australia +61 8 9322 3960 info@chalicegold.com www.chalicegold.com linkedin.com/company/chalice-gold-mines twitter.com/chalicegold ASX : CHN | OTCQB: CGMLF
Slide 30: The Chalice Story Appendix
The Chalice Story Appendix 30
Slide 31: Since our 2006 IPO, we have acquired well and generated >A$110M
COMPANY HISTORY Since our 2006 IPO, we have acquired well, advanced projects quickly and generated >A$110M in after-tax proceeds1 from asset sales 2012 2020 Zara Gold Project in Major Ni-Cu- Eritrea sold for PGE discovery 2006 ~US$114M (pre-tax) 2016 at Julimar $7.5M raised in IPO Cameron 2018 Proje
Slide 32: Accomplished mine finders and disciplined commercial managers
TEAM We are a dynamic and entrepreneurial group of accomplished mine finders and disciplined commercial managers We have people who know People who know how to finance and how to find mines… commercialise them Dr Kevin Frost Tim Goyder GM – Exploration, BSc (Hons) PhD MAIG Chairman • Co-recipient of
Slide 33: Strategy: systematically acquire and explore in premier terranes
STRATEGY Our strategy is to systematically acquire and explore in premier terranes; aiming to address the rapid decline in tier-1 scale discoveries worldwide Exploration Expenditures and Primary Gold discovered globally Tier-1 scale discoveries (>US$1bn NPV) now represent only ~2% of all discoveries
Slide 34: Portfolio of projects, royalties, investments and non-operated JVs
PORTFOLIO Chalice’s portfolio includes district-scale precious and base metal projects as well as several royalties, investments and non-operated JVs Australia Hawkstone Warrego North Copper-Gold JV Nickel-Copper- (NT Bullion earning 75%) Cobalt Project Royalties (85-100%) NT • Nyanzaga, Tanzania –
Slide 35: Hawkstone Nickel-Copper-Cobalt Project
Hawkstone field reconnaissance, Jun-2019 Hawkstone Nickel-Copper- Cobalt Project Western Australia 35
Slide 36: Hawkstone covers 1,800km2 in the King Leopold Orogen
The Hawkstone Nickel-Copper-Cobalt Project covers 1,800km2 in the frontier and largely unexplored King Leopold Orogen of the west Kimberley 600,000mE 700,000mE 800,000mE • Frontier province highly prospective for 50km magmatic Ni-Cu-Co sulphide deposits 8,200,000mN N • Minimal modern exploration • 2
Slide 37: Immediate focus is the Ruins Area nickel sulphide targets
Chalice’s immediate focus is the Ruins Area, where several nickel sulphide targets have already been defined • Merlin (IGO-Buxton) hosts drill intercepts in Ruins Dolerite with grades up to 8.14% Ni, 5.26% Cu and 0.69% Co • 11 airborne EM targets defined by Merlin (IGO-Buxton) Chalice to date along
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