Chalice Gold Mines — Investor Presentation (April 2020)
35 slides from Chalice Gold Mines's investor presentation, Apr 20, 2020
Slide 1: Corporate Presentation
Corporate Presentation 20 April 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
A unique, well- Chalice has proven ability to: funded exploration • Make opportunistic acquisitions specialist 1 • Explore for mines and rapidly add value • Divest assets in a disciplined manner Which has created significant value to date… • ~A$107M1 generated from asset sales 2 • ~A$36M returned to
Slide 4: Portfolio of district-scale gold and nickel projects in Australia
Chalice’s portfolio includes key district-scale gold and nickel projects in premier terranes of Australia Julimar Nickel-Copper-PGE Project, WA • New greenfield nickel-copper-PGE sulphide discovery 1 • 19m @ 8.37g/t Pd, 2.59% Ni, 1.04% Cu, 0.14% Co in 1st hole • 100% owned, large unexplored intrusiv
Slide 5: Tight capital structure and strong financial position
We have a tight capital structure Capital Structure and Financials and a strong financial position Equity listings Shares Out. 274.1M Market capitalisation2 ASX: CHN Shares (F/D) 296.9M ~A$330M (@ A$1.20ps) OTCQB: CGMLF Top Shareholders1 Tim Goyder (Chairman) Working Capital & Debt Cash2 $9.2M inves
Slide 6: Accomplished mine finders and sound commercial managers
We are a dynamic group of accomplished mine finders and sound 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 Executive Chairman • Co-recipient of AMEC’s Prospector of
Slide 7: Julimar Nickel-Copper-PGE Project, Western Australia
Drilling discovery hole JRC001 at Julimar Ni-Cu-PGE Project, Mar-2020 Julimar Nickel- Copper-PGE Project Western Australia 7
Slide 8: High-grade Ni-Cu-Pd sulphide intersected in first drill hole at Julimar
High-grade nickel-copper-palladium sulphide intersected in the first drill hole at Julimar, an unexplored intrusive complex ~70km NE of Perth WA • ~1 hour drive NE of Perth, with direct access to major N highway, rail, power and port infrastructure • ~26km x 7km layered ultramafic-mafic intrusive co
Slide 9: Discovery hole at Gonneville targeted a strong MLEM conductor
The discovery hole at Gonneville targeted a strong, discrete MLEM conductor and intersected a wide high-grade Ni-Cu-Pd zone from 44m 424,500mE 425,500mE 10km • JRC001 intersected: 6,513,500mN N • 33m @ 6.5g/t Pd, 0.7g/t Pt 1.6% Ni, JRC003: 142m @ 0.6g/t Pd, 0.1g/t Pt f/ 17m, 0.7% Cu, 0.1% Co from 44
Slide 10: Two parallel high-grade Ni-Cu-Pd zones identified
Two parallel high-grade Ni-Cu-Pd zones identified thus far, both remain open along strike and at depth 10km • JRC006, 60m east of discovery hole N JRC007 JRC001, intersected: JRC004: 30m @ 0.9g/t Pd, 0.4gt Pt f/ 8m • 41m @ 2.6g/t Pd, 0.4g/t Pt, 0.5% Ni, and 58m @ 0.9g/t Pd, 0.2g/t Pt from 132m JRC00
Slide 11: Parallel zones have steep westerly dip and remain open
The parallel high-grade Ni-Cu-Pd zones have a steep westerly dip and remain wide open JD002 massive sulphides at ~49.5m (assays pending) JD002 matrix/net-textured sulphides at ~90.5m (assays pending) 11
Slide 12: Inversion modelling indicates a highly prospective geometry
Inversion modelling indicates a highly prospective geometry, with similarities to globally significant magmatic Ni-Cu+/-PGE sulphide deposits Julimar Nickel-Copper-PGE Project Gonneville Intrusive – Aeromagnetic Inversion 3D Model • Gonneville Plan View April 2020 modelled as a ~1.6km long x N Side
Slide 13: The Project has strong commercial drivers for exploration
The Project has strong A new Ni-Cu-PGE province in unrecognised complex commercial drivers for +++ → never explored for magmatic sulphides exploration Located on Perth’s doorstep +++ → direct access to established infrastructure in a tier-1 mining jurisdiction Chalice has expanded its regional holdi
Slide 14: Pyramid Hill Gold Project, Victoria
Drilling at Pyramid Hill Gold Project, Oct-2019 Pyramid Hill Gold Project Victoria 14
Slide 15: Why the Bendigo gold district of Victoria?
Why the Bendigo gold district of 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/
Slide 16: Chalice staked a >5,000km2 essentially unexplored land holding
Chalice has staked a >5,000km2 essentially unexplored land holding surrounding two world-class gold deposits 143.5° 144.5° Interpreted Faults Murray River Basement outcrop limit Chalice is in good company in the district, with Pyramid Hill Gold Project Bendigo Zone the entire Northern Bendigo Zone e
Slide 17: Major gold deposits controlled by regional scale faults
The major 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 gravity
Slide 18: Dispersion of gold and pathfinder metals used to vector under cover
Dispersion of gold and pathfinder metals such as arsenic and antimony is used to vector towards gold under cover Outcropping dispersion footprints Under cover Arsenic (we are close) ~9 Drill Line 1 Antimony (getting warmer) Line 2 Gold! Line 3 A Gold System!! Identifying continuous dispersion over k
Slide 19: Systematic value-add approach: find the big gold systems first
Chalice has adopted a systematic value-add approach – ‘find the big gold systems first’ 143.5° • Our Project covers hundreds of kilometres of 144.5° Interpreted Faults Murray River prospective strike: Basement outcrop limit Bendigo Pyramid Hill Gold Project Zone • Muckleford (>300km) Gold occurrence
Slide 20: Pyramid Hill Gold Project Key results to date
Drilling at Pyramid Hill Gold Project, Feb-2020 Pyramid Hill Gold Project Key results to date 20
Slide 21: Karri Prospect: first diamond hole intersected wide primary gold zone
1. KARRI PROSPECT First diamond drill hole intersected a wide zone of primary gold suggesting a significant gold system below the >4km long gold trend OPEN Muckleford 768,000mE 766,000mE Area N • ~Maiden 7 hole diamond program for Karri structure / geology in progress Ironbark OPEN • First ever test
Slide 22: Gold zone associated with a tight upright fold hinge
1. KARRI PROPSECT The gold zone is associated with a tight upright fold hinge – a characteristic feature of the large gold systems in the Bendigo Zone 22
Slide 23: Gold footprint at Karri indicates potential for sizeable system
1. KARRI PROPSECT The gold footprint at Karri indicates the potential for a sizeable gold system beneath → the size of the prize is significant OPEN N ~9Moz Fosterville Karri Target OPEN OPEN Gold Mine Plan View Plan View Scale Comparison Swan Zone1 ~2.3Moz @ ~50g/t Au >1.0g/t gold trend >3g/t Au Re
Slide 24: Two large diorite intrusions identified at Ironbark Target
2. IRONBARK TARGET Two distinct, large diorite intrusions identified at the Ironbark Target; up to 3g/t gold intersected in the first AC drill holes 764,000 mE 765,000 mE Karri 766,000 mE Muckleford Area • ~100 vertical AC holes completed to 4m @ 0.21g/t f/ ~22km 124m to EOH date – no historical dri
Slide 25: Ironbark: first gold in diorites in the Bendigo Zone
2. IRONBARK TARGET High-grade gold in diorite is common in Eastern Victoria, however Chalice’s discovery of gold in the Ironbark diorites is the first in the Bendigo Zone Pyramid Hill Gold Project • Gold in the diorites and 763,925mE 764,800mE Ironbark North Target – Cross Section (5,964,100mN +/- 5
Slide 26: Pyramid Hill has strong commercial drivers for exploration
Highly prospective but essentially unexplored The Pyramid Hill Gold Project +++ → a new opportunity with huge upside and no legacy brownfield issues has strong commercial drivers for exploration High-grade district + operating mines nearby +++ → strong commercial drivers for exploration >5,000km2 ar
Slide 27: So why invest in Chalice?
So why invest in Chalice? RC/diamond drilling at new Ni-Pd discovery in WA + 1 2 diamond rigs drilling in Vic – all prospects have significant scale potential ~A$25M in working capital and investments 2 (~A$0.09ps)1 – we are well funded >A$100M generated from asset sales, ~A$36M returned 3 to shareh
Slide 28: 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 29: 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 30: Company history since 2006 IPO
COMPANY HISTORY Since our 2006 IPO, we have acquired well, advanced projects quickly and generated >A$100M in after-tax proceeds1 from asset sales 2012 Zara Gold Project in 2006 Eritrea sold for 2016 $7.5M raised in IPO ~US$114M (pre-tax) Cameron 2018 on ASX to progress 2009 Gold Project in A$0.10ps
Slide 31: Portfolio of projects, royalties, investments and non-operated JVs
PORTFOLIO Chalice’s portfolio includes key district-scale gold and nickel projects as well as several royalties, investments and non-operated JVs Australia King Leopold Warrego North Copper-Gold Project Nickel Project (70-100%) (85-100%) Flinders River Royalties Vanadium Project NT • Nyanzaga, Tanza
Slide 32: Gold Road Resources case study
CASE STUDY Gold Road Resources (ASX: GOR) started with greenfield exploration in an underexplored belt and are now a >A$1Bn company Gold Road (ASX: GOR) Share Price (A$) 1.80 • The Gruyere discovery was located HIGH 1.625 1.60 Mining in a similar underexplored yet Feasibility Commenced proven minera
Slide 33: King Leopold Nickel Project, Western Australia
King Leopold field reconnaissance, Jun-2019 King Leopold Nickel Project Western Australia 33
Slide 34: King Leopold Nickel Project covers 1,800km2 in frontier province
The King Leopold Nickel 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 • 2015 Merlin
Slide 35: 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 Merlin (IGO-Buxton) Several high- • 11 airborne EM targets defined by grade Ni
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