Chalice Gold Mines — Investor Presentation (May 2020)
38 slides from Chalice Gold Mines's investor presentation, May 12, 2020
Slide 1: Exciting new Ni-Cu-PGE discovery in WA and an emerging gold province in Vic
Exciting new Ni-Cu-PGE discovery in WA and an emerging gold province in Vic 12 May 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
Chalice has proven ability to: A unique, well- • Acquire assets, make discoveries and define funded exploration 1 commercial mines specialist • Divest assets in a disciplined manner Which has created significant value to date… 2 • ~A$110M1 generated from asset sales • ~A$36M returned to shareholders
Slide 4: Chalice's portfolio includes three district-scale precious / base metal projects in Australia
Chalice’s portfolio includes three district-scale precious / base metal projects in premier terranes of Australia 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, large unexplored intr
Slide 5: We have 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. 274.8M Market capitalisation2 ASX: CHN Shares (F/D) 296.9M ~A$330M (@ A$1.20ps) OTCQB: CGMLF Top Shareholders1 Working Capital & Debt Cash2 Tim Goyder (Chairman) Investments
Slide 6: A dynamic and entrepreneurial group of accomplished mine finders and disciplined commercial managers
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 Executive Chairman • Co-recipie
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-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 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 com
Slide 9: The discovery hole at Gonneville targeted a strong, discrete 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 424,500mE 425,500mE 10km • JRC001 intersected: JRC010: N • 33m @ 6.5g/t Pd, 0.7g/t Pt 1.6% Ni, 137m @ 0.6g/t Pd, 0.1g/t Pt, 0.1% Ni, 0.1% Cu & 97m @ 0.6g/t Pd, 0.1g/t
Slide 10: Two parallel high-grade Ni-Cu-PGE zones identified thus far
Two parallel high-grade Ni-Cu-PGE zones identified thus far, both remain open along strike and at depth 10km • JRC006, 60m east of discovery hole N JRC001, intersected: 16m @ 1.6g/t Pd, 0.4g/t Pt (O) & 13m @ 0.8g/t Pd, 0.2 g/t Pt & 7m @ 1.3g/t Pd, 0.2g/t Pt & 16m @ 0.8g/t Pd, 0.3g/t Pt (O) & • 41m @
Slide 11: The wide high-grade Ni-Cu-PGE zones have a steep westerly dip and remain wide open
The wide high-grade Ni-Cu-PGE zones have a steep westerly dip and remain wide open JD002 massive sulphides at ~49.5m (assays pending) (pyrrhotite-pentlandite-chalcopyrite) JD002 matrix/net-textured sulphides at ~90.5m (assays pending) (pyrrhotite-pentlandite-chalcopyrite) 11
Slide 12: The intrusive has a highly prospective geometry
The intrusive has 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 View ~0.7km
Slide 13: Historical surface sampling indicates multiple Ni-Cu-PGE anomalies NE of Gonneville
Historical surface sampling indicates multiple Ni-Cu-PGE anomalies ~7-10km NE of Gonneville, highlighting the significant regional upside Julimar Nickel-Copper-PGE Project Julimar Intrusive Complex Plan View – • ~26km long Julimar Intrusive Complex (JIC) has a N historical surface sampling over regi
Slide 14: Strong demand growth and lack of new supply is driving Palladium to record highs
Strong demand growth and lack of new sources of supply is driving Palladium to record highs 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), iridium (Ir), osmium (O
Slide 15: The 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 +++ Ni-Pd rich magmatic sulphide discoveries are exceptionally rare +++ Chalice has expanded its regional holding to >2,000k
Slide 16: Pyramid Hill Gold Project Victoria
Drilling at Pyramid Hill Gold Project, Oct-2019 Pyramid Hill Gold Project Victoria 16
Slide 17: 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 18: Chalice has adopted a 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 19: Karri Prospect: first diamond drill hole intersected a 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 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 20: The gold zone is associated with a 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 20
Slide 21: The gold footprint at Karri indicates potential for a 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 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 22: Two distinct, large diorite intrusions identified at the 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 23: Gold in the Ironbark diorites is the first 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 24: The Pyramid Hill Gold Project 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 25: Forward plan – systematic exploration programs to continue in WA and VIC
Forward plan – systematic exploration programs to continue in WA and VIC 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 Diamond Drilling Gonnevil
Slide 26: So why invest in Chalice?
So why invest in Chalice? 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 from world-class goldf
Slide 27: 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 28: Our strategy is to 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 29: Company history: since our 2006 IPO we have generated >A$110M from asset sales
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 Significant Eritrea sold for Ni-Cu-PGE 2006 2016 ~US$114M (pre-tax) discovery $7.5M raised in IPO Cameron 2018 at Julimar
Slide 30: Portfolio of gold and nickel 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 Australia King Leopold Warrego North Copper-Gold Project Nickel Project (70-100%) (85-100%) Flinders River Royalties Vanadium Project NT • Nyanzaga, Tanza
Slide 31: Gold Road Resources started with greenfield exploration and is now a >A$1Bn company
CASE STUDY Gold Road Resources (ASX: GOR) started with greenfield exploration in an underexplored belt and are now a >A$1Bn company Gold Road (ASX: GOR) Share Price (A$) 1.80 • The Gruyere discovery was located HIGH 1.625 1.60 Mining in a similar underexplored yet Feasibility Commenced proven minera
Slide 32: Pyramid Hill Gold Project Appendix
Drilling at Pyramid Hill Gold Project, Feb-2020 Pyramid Hill Gold Project Appendix 32
Slide 33: Chalice has 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 34: The major gold deposits are 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 35: Dispersion of gold and pathfinder metals is used to vector towards gold 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 36: King Leopold Nickel Project Western Australia
King Leopold field reconnaissance, Jun-2019 King Leopold Nickel Project Western Australia 36
Slide 37: The King Leopold Nickel Project covers 1,800km2 in the 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 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 38: Chalice's immediate focus is the Ruins Area, where nickel sulphide targets are defined
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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