Chalice Mining Limited · ASX:CHN
Chalice Mining — Chalice Gold Mines — Investor Presentation (May 2020)
37 slides from Chalice Mining's investor presentation, May 5, 2020
Slide 1: Exciting new Ni-Cu-PGE discovery in WA and an emerging gold province in Vic
For personal use only Exciting new Ni-Cu-PGE discovery in WA and an emerging gold province in Vic 5 May 2020 ASX: CHN | OTCQB: CGMLF
Slide 2: Forward looking statements and disclosures
Forward looking statements and disclosures For personal use only 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 Limit
Slide 3: Chalice has proven ability to: a unique, well-funded exploration specialist
Chalice has proven ability to: A unique, well- • Acquire assets, make discoveries and define funded exploration 1 commercial mines For personal use only specialist • Divest assets in a disciplined manner Which has created significant value to date… 2 • ~A$110M1 generated from asset sales • ~A$36M re
Slide 4: Portfolio includes three district-scale precious / base metal projects in premier terranes
Chalice’s portfolio includes three district-scale precious / base metal projects in premier terranes of Australia For personal use only Julimar Nickel-Copper-PGE Project, WA • New greenfield nickel-copper-PGE sulphide discovery 1 • 19m @ 8.4g/t Pd, 2.6% Ni, 1.0% Cu, 0.1% Co in 1st hole • 100% owned,
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. 274.8M Market capitalisation2 ASX: CHN Shares (F/D) 296.9M ~A$330M (@ A$1.20ps) OTCQB: CGMLF For personal use only Top Shareholders1 Working Capital & Debt Cash2 Tim Goyder
Slide 6: Dynamic and entrepreneurial group of accomplished mine finders
We are a dynamic and entrepreneurial group of accomplished mine finders and disciplined commercial managers For personal use only 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
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 For personal use only Western Australia 7
Slide 8: High-grade Ni-Cu-PGE intersected in the very first drill hole at Julimar
High-grade Ni-Cu-PGE intersected in the very first drill hole at Julimar, uncovering a remarkable new discovery in a completely new province For personal use only WA • ~1 hour drive NE of Perth, with direct access to major N highway, rail, power and port infrastructure • ~26km x 7km layered ultramaf
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-PGE zone from 44m For personal use only • JRC001 intersected: • 33m @ 6.5g/t Pd, 0.7g/t Pt 1.6% Ni, 0.7% Cu, 0.1% Co from 44m, incl. • 13m @ 8.85g/t Pd, 1.09g/t Pt 3.15% Ni, 1.19% Cu i
Slide 10: Intrusive has highly prospective geometry, similar to globally significant deposits
The intrusive has a highly prospective geometry, with similarities to globally significant magmatic Ni-Cu+/-PGE sulphide deposits For personal use only Julimar Nickel-Copper-PGE Project Gonneville Intrusive – Aeromagnetic Inversion 3D Model • Gonneville Plan View April 2020 modelled as a ~1.6km long
Slide 11: Two parallel high-grade Ni-Cu-PGE zones identified, both open
Two parallel high-grade Ni-Cu-PGE zones identified thus far, both remain open along strike and at depth For personal use only • JRC006, 60m east of discovery hole JRC001, intersected: • 41m @ 2.6g/t Pd, 0.4g/t Pt, 0.5% Ni, 0.4% Cu, 0.03% Co from 39m (sulphide) to limit of assays • This eastern zone
Slide 12: Wide high-grade Ni-Cu-PGE zones have a steep westerly dip
The wide high-grade Ni-Cu-PGE zones have a steep westerly dip and remain wide open For personal use only JD002 massive sulphides at ~49.5m (assays pending) (pyrrhotite-pentlandite-chalcopyrite) JD002 matrix/net-textured sulphides at ~90.5m (assays pending) (pyrrhotite-pentlandite-chalcopyrite) 12
Slide 13: 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 Palladium to record highs For personal use only Overview of PGEs and Uses PGE Market and Pricing • The platinum group elements (PGE) are platinum (Pt), palladium • London Platinum and Palladium Market (LPPM) sets market prices (Pd), i
Slide 14: Project has strong commercial drivers for exploration
The Project has strong A new Ni-Cu-PGE province in unrecognised commercial drivers for exploration +++ complex → never explored for magmatic sulphides and all upside preserved For personal use only +++ Ni-Pd rich magmatic sulphide discoveries are exceptionally rare +++ Chalice has expanded its regio
Slide 15: Pyramid Hill Gold Project, Victoria
Drilling at Pyramid Hill Gold Project, Oct-2019 Pyramid Hill Gold Project For personal use only Victoria 15
Slide 16: Why the Bendigo gold district of Victoria?
Why the Bendigo gold district of Victoria? The prospect of finding another Fosterville Gold Mine For personal use only 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
Slide 17: Systematic value-add approach – find the big gold systems first
Chalice has adopted a systematic value-add approach – ‘find the big gold systems first’ For personal use only 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 (>
Slide 18: Karri Prospect: first diamond hole intersected wide zone of primary gold
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 For personal use only OPEN Muckleford 768,000mE 766,000mE Area N • ~Maiden 7 hole diamond program for Karri structure / geology in progress Ironbark
Slide 19: Karri Prospect: gold zone associated with tight upright fold hinge
1. KARRI PROSPECT The gold zone is associated with a tight upright fold hinge – a characteristic feature of the large gold systems in the Bendigo Zone For personal use only 19
Slide 20: Karri gold footprint indicates potential for sizeable gold system
1. KARRI PROSPECT The gold footprint at Karri indicates the potential for a sizeable gold system beneath → the size of the prize is significant For personal use only 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
Slide 21: Ironbark Target: two large diorite intrusions identified
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 For personal use only 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 da
Slide 22: 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 For personal use only Pyramid Hill Gold Project • Gold in the diorites and 763,925mE 764,800mE Ironbark North Target – Cross Sect
Slide 23: 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 personal use only for exploration High-grade district + operating mines nearby +++ → strong commercial drivers for ex
Slide 24: Forward plan – systematic exploration programs in WA and VIC
Forward plan – systematic exploration programs to continue in WA and VIC For personal use only 2020 Apr May Jun Jul Aug Sept Julimar Project, WA Access Approvals State Forest and private land SQUID Geophysics DHEM EM DHEM Soil Sampling Gonneville Gonneville RC Drilling Phase 1 Gonneville Phase 2 Dia
Slide 25: So why invest in Chalice?
So why invest in Chalice? For personal use only The new Julimar Ni-Cu-PGE discovery in WA has 1 significant scale potential and has excellent infrastructure access Early exploration at the Pyramid Hill Gold Project in Vic 2 has identified a 4km long gold trend, close to Fosterville and along strike
Slide 26: Thank You
For personal use only 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 27: 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 For personal use only Exploration Expenditures and Primary Gold discovered globally Tier-1 scale discoveries (>US$1bn NPV) now represent only
Slide 28: Company history
COMPANY HISTORY Since our 2006 IPO, we have acquired well, advanced projects quickly and generated >A$110M in after-tax proceeds1 from asset sales For personal use only 2012 2020 Zara Gold Project in Significant Eritrea sold for Ni-Cu-PGE 2006 ~US$114M (pre-tax) 2016 discovery $7.5M raised in IPO Ca
Slide 29: Portfolio: district-scale projects, royalties, investments and JVs
PORTFOLIO Chalice’s portfolio includes key district-scale gold and nickel projects as well as several royalties, investments and non-operated JVs For personal use only Australia King Leopold Warrego North Copper-Gold Project Nickel Project (70-100%) (85-100%) Flinders River Royalties Vanadium Projec
Slide 30: Gold Road Resources: greenfield exploration to >A$1Bn company
CASE STUDY Gold Road Resources (ASX: GOR) started with greenfield exploration in an underexplored belt and are now a >A$1Bn company For personal use only Gold Road (ASX: GOR) Share Price (A$) 1.80 • The Gruyere discovery was located HIGH 1.625 1.60 Mining in a similar underexplored yet Feasibility C
Slide 31: Pyramid Hill Gold Project Appendix
Drilling at Pyramid Hill Gold Project, Feb-2020 Pyramid Hill Gold Project For personal use only Appendix 31
Slide 32: Staked >5,000km2 essentially unexplored land holding
Chalice has staked a >5,000km2 essentially unexplored land holding surrounding two world-class gold deposits For personal use only 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 N
Slide 33: Major gold deposits controlled by regional scale faults continuing into Chalice tenure
The major gold deposits are controlled by regional scale faults, which continue to the north into Chalice’s tenure → follow the strike For personal use only NSW VIC Northern Four Eagles Bendigo Zone Tandarra Extension of these regional scale faults Fosterville ~9Moz Karri under cover evident Melbour
Slide 34: 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 For personal use only 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 contin
Slide 35: King Leopold Nickel Project, Western Australia
King Leopold field reconnaissance, Jun-2019 King Leopold Nickel Project For personal use only Western Australia 35
Slide 36: King Leopold covers 1,800km2 in frontier King Leopold Orogen
The King Leopold Nickel Project covers 1,800km2 in the frontier and largely unexplored King Leopold Orogen of the west Kimberley For personal use only 600,000mE 700,000mE 800,000mE • Frontier province highly prospective for 50km magmatic Ni-Cu-Co sulphide deposits 8,200,000mN N • Minimal modern expl
Slide 37: Immediate focus is the Ruins Area with nickel sulphide targets
Chalice’s immediate focus is the Ruins Area, where several nickel sulphide targets have already been defined For personal use only • 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 targe
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