Chalice Mining Limited · ASX:CHN
Chalice Mining — Chalice Gold Mines — BGF Equities Gold Investor Road Show August 2010
22 slides from Chalice Mining's conference presentation, Aug 24, 2010
Slide 1: Building an African Gold Mining Powerhouse
ASX: CHN For personal use only • Development targeted for 2011 • 104,000 oz per year producer • Huge exploration upside Building an African Gold Mining Powerhouse BGF Equities‐ Gold Investor Road Show August 2010 www.chalicegold.com
Slide 2: Disclaimer & Competent Person's Statement
Disclaimer & Competent Person’s Statement For personal use only • This presentation may contain value references and "forward looking statements“ which are subject to various risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implie
Slide 3: Chalice Snapshot
Chalice Snapshot For personal use only • Creating shareholder wealth through exploration and production: • Focused on East Africa, Listed on ASX (CHN), Listing on TSX (September 2010) • 100% owned Zara Gold Project, Eritrea (subject to gov’t project participation rights): • High‐grade Ore Reserves o
Slide 4: Corporate Snapshot
Corporate Snapshot For personal use only Capital Structure (post 1 for 6 rights issue) • Shares on issue 181M (211M) • Options on Issue 13.075M • Cash (est. August 10) A$5M (~A$17M) Board • Tim Goyder (Executive Chairman) 6 month h share h price i • Dr Doug Jones (Managing Director) • Mike Griffiths
Slide 5: Zara – Project Location
Zara – Project Location For personal use only 5
Slide 6: Outstanding Returns, Outstanding Potential
Koka – Outstanding Returns, Outstanding Potential For personal use only • Positive Feasibility Study completed • US$122M development of open pit mining operation and treatment plant • ~700,000tpa ~700 000t ore processing i tot produce d 104,000oz pa • Forecast cash operating cost US$338/oz • NPV of
Slide 7: Project – Key Financial Outcomes
Koka Project – Key Financial Outcomes For personal use only 100% Project Financial Outcomes* Gold Price (Unleveraged) $900 $1,200 $1,500 Life‐of‐mine EBITDA $381M $589M $797M Average annual EBITDA $54M $84M $114M NPV5% after‐tax cash flows $99M $196M $293M IRR after tax 22% 35% 45% Payback period (y
Slide 8: Gold Deposit
Koka Gold Deposit For personal use only • Quartz stockwork system in microgranite • JORC‐compliant Indicated Resource of 5.0Mt @ 5.3 g/t Au for 840,000oz gold • P b bl reserve – 4.6Mt Probable 4 6Mt @ 5 5.1g/t 1 /t • Based on results from 137 diamond drill holes ((~21 21,000m 000m drilled) • ~600m s
Slide 9: Gold Deposit – 3D Pit Image
Koka Gold Deposit – 3D Pit Image For personal use only 9
Slide 10: Gold Deposit – Cross Section
Koka Gold Deposit – Cross Section For personal use only Stage 1 pit design – pd4tr Whittle shell 3 Whittle shell 18 Final pit design – pd1tr 10
Slide 11: Gold Mine – Plant Layout
Koka Gold Mine – Plant Layout For personal use only Crushed-oreStockpile Primary Crusher Maintenance SAG Mill Gensets CIL Tankage CCD Circuit Stores Gold Room Water Storage Mine Office 11
Slide 12: Gold Mine – Site Layout
Koka Gold Mine – Site Layout For personal use only 1.5 km Plant Dump A Plant Dump B Dump C 12
Slide 13: Exploration – The Bigger Picture
Exploration – The Bigger Picture For personal use only • Zara Project located within Arabian‐ Nubian Shield – an emerging gold & base metal province • Gold endowment +20Moz – numerous deposits and mines dating back to ancient times • Minimal modern exploration • New world‐class p projects j beingg d
Slide 14: Chalice – Huge Exploration Upside
Chalice – Huge Exploration Upside For personal use only • Chalice controls ~20,000 sq km of highly prospective tenements & applications in Eritrea • Recent exploration p has identified several zones of extensive mineralisation in addition to the existing Koka resource • Intensive exploration underwa
Slide 15: Koka-Konate 'Corridor'
Koka‐Konate ‘Corridor’ For personal use only • Multiple structures with alteration and artisanal workings: • Konate – artisanal workings on Koka South quartz stockwork – drilling in progress • Fah – extensive quartz stockwork within 4 km x 0.8 km alteration zone – drilling planned • Koka South – nar
Slide 16: Konate
Konate For personal use only • Zone of intensive artisanal workings 5km south h off Koka: K k • ~600m by up to 20m wide • quartz vein stockwork k k in silica‐sericite l altered l d microgranite • Diamond drilling underway • Guided by structural analysis of vein arrays • Significant quartz veining wi
Slide 17: Koka South
Koka South For personal use only • Strong IP resistivity anomaly id tifi d 200‐500m identified 200 500 south th off Koka K k • Ground follow‐up confirmed zone of silica‐sericite altered KOKA microgranite • Potential ‘blind’ system plunging 24/2 8.9/1 gently to south 2.2/1 91/1 92/1 23.7/3 30.7/2 • D
Slide 18: Regional Geochemical Sampling
Regional Geochemical Sampling For personal use only • Systematic geochemical drainage sampling works well in this terrane • Initial BLEG (Bulk Leach Extractable Gold) and multi‐element analyses results reveal numerous high‐order anomalies on Zara and Zara North properties p p • Results >5ppb normall
Slide 19: Eritrea Overview
Eritrea Overview For personal use only • Stable bl operating i and d social i l environment • Proactive P ti G Governmentt stance t on mining developments – “open for business” • Modern Mining Code • Increasing foreign exploration & mining investment – 20 groups now active in country • Growing inter
Slide 20: Summary
Summary For personal use only • Koka Gold Deposit: • Advanced high grade gold deposit • Strong g economics • Low technical risk • Feasibility Study completed • Aggressive exploration programs underway to expand resource base • Strategic ground position in emerging gold & base metall province i • Exp
Slide 21: Building an African Gold Mining Powerhouse
ASX: CHN For personal use only • Development targeted for 2011 • 104,000 oz per year producer • Huge exploration upside Building an African Gold Mining Powerhouse BGF Equities‐ Gold Investor Road Show August 2010 www.chalicegold.com
Slide 22: Eritrea Mining Act
Eritrea Mining Act For personal use only Prospecting licence Royalties • One year, not renewable,not transferrable • Up to 5% for precious metals and 3.5% for other • Maximum size 100km2 metallic t lli minerals i l • Licence fee (US)$33.33 • Annual rental (US)$3.33/km2 Government Participation • 10%
Chalice Gold Mines — BGF Equities Gold Investor Road Show August 2010 on 6ix