Chalice Gold Mines — Shareholder Meeting (November 2012)
17 slides from Chalice Gold Mines's shareholder meeting presentation, Nov 30, 2012
Slide 1: Cashed up for growth and opportunity
Cashed up for growth and opportunity: • Cash: $55M net cash following 10c capital return • Today’s exploration upside: Large VMS system discovered in Eritrea • Tomorrow’s potential: Seeking advanced projects Slide: 1
Slide 2: Disclaimer and Competent Person’s Statement
Disclaimer and Competent Person’s Statement 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 and
Slide 3: Chalice Snapshot
Chalice Snapshot A new chapter opens following sale of Eritrean gold asset for $114M Capital Structure: Share Price ~A$0.32 Shares on Issue 250 million Market Capitalisation ~A$80 million (=32cps) Options on Issue 5 million Debt - Cash ~A$80 million Capital Return – Record Date: 10 A10cps (A$25 mill
Slide 4: Current Regional Focus: the Arabian-Nubian Shield
Current Regional Focus: the Arabian-Nubian Shield Strong strategic foothold in one of the world’s exploration “hot spots” • Long mining history (+1,000 recorded ancient copper and gold mines) • Minimal modern exploration • World-class projects now being developed Slide: 4
Slide 5: Current Ground Position - Eritrea
Current Ground Position - Eritrea Mogoraib North tenement encompasses outstanding exploration potential… 555 km² granted tenure Zara Gold Project recently divested to China SFECO Group and ENAMCO for combined proceeds of $114M, leaving Chalice with the highly prospective Mogoraib North VMS Project.
Slide 6: Mogoraib North: On the Doorstep of a Giant
Mogoraib North: On the Doorstep of a Giant 555 sq km tenement secured in early 2011 – immediately north of Bisha Mine BISHA VHMS MINE 2011 production: 379koz gold, copper expansion under construction 12 years of reserves, one of highest grade open pit mines in the world Slide: 6
Slide 7: Mogoraib North: On the Doorstep of a Giant
Mogoraib North: On the Doorstep of a Giant On the doorstep of one of the world’s premier new VMS mines Slide: 7
Slide 8: VMS Geological Model
VMS Geological Model VMS deposits are created by volcanic-associated hydrothermal events in submarine environments • VMS deposits are a major source of global copper, zinc and lead production • Most significant VMS deposits occur in clusters or camps, e.g.: • Flin Flon (Manitoba) – 154 Mt contained
Slide 9: Mogoraib North – A Major New VMS System
Mogoraib North – A Major New VMS System A highly prospective project which has recently delivered a new discovery for Chalice • 555 sq km tenement 10km north of Bisha deposit • Volcanogenic Massive Sulphide (VMS) ‘horizons’ trend north under transported cover into CHN ground • Numerous bedrock condu
Slide 10: Mogoraib North – 2012 Exploration Program
Mogoraib North – 2012 Exploration Program Sulphides intersected in 20th EM target to be drilled after lots of black shales! • 30 priority conductor plates selected from >200 EM targets identified from initial interpretation of VTEM • VTEM targets further screened and prioritised by ground checking a
Slide 11: T209 Discovery
T209 Discovery A virgin discovery beneath shallow transported cover • Disseminated, stringer & massive to semi-massive sulphides intersected in wide-spaced holes over 5km • MOGD-00021 – Zn & Cu-rich sulphide intersection: • 145-150m: 5m @ 0.86% Cu, 1.33% Zn, 0.1g/t Au, 7.48g/t Ag (including 1m at 1.
Slide 12: T209 Massive Sulphides – MOGD-00021
T209 Massive Sulphides – MOGD-00021 Slide: 12
Slide 13: Mogoraib North – Area C
Mogoraib North – Area C Gold Potential • Quartz vein system associated with porphyry dyke swarm • Artisanal mining • Coincident Au-Bi-Te-Mo anomalism in soils • Similar geochemical signature to Koka gold deposit • Classic geochemical signature of Intrusive-Related Gold Systems (IRGS) Slide: 13
Slide 14: Mogoraib North – Area C
Mogoraib North – Area C Soil Geochemistry Au Bi Te Mo Slide: 14
Slide 15: Business Development Focus
Business Development Focus Capacity to secure quality new opportunities with potential to add significant value • Aiming to put $55 million to work • Preference for advanced or development stage opportunities with growth potential • Preference for gold or gold-copper (± silver) but will consider oth
Slide 16: Summary: A New Chapter Begins
Summary: A New Chapter Begins Cash, Exploration Upside, Opportunity • Divestment of Zara Project completed • $80M net proceeds from sale • Cash-backing = 32cps • 10cps capital return to shareholders (subject to shareholder approval) • VHMS & gold targets at Mogoraib North • Hunt for new opportunitie
Slide 17: Summary: A New Chapter Begins
Summary: A New Chapter Begins Cash, Exploration Potential, Opportunity AUSTRALIA Bell Potter Trent Allen E: tcallen@bellpotter.com.au T: +612 9231 0880 Paterson Securities Limited Simon Tonkin E: STonkin@psl.com.au T: +618 9225 2816 Black Swan Mark Savich E: msavich@blackswanequities.com.au T: +61 8
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