Chalice Mining Limited · ASX:CHN
Chalice Mining — Chalice Gold Mines — Investor Presentation (February 2010)
24 slides from Chalice Mining's investor presentation, Feb 23, 2010
Slide 1: Cornerstone of an African Gold Business
ASX: CHN For personal use only “Cornerstone of an African Gold Business ” Corporate Presentation February 2010 www.chalicegold.com.au
Slide 2: Snapshot
Snapshot For personal use only • Key y asset: 80%‐owned Zara Gold Project, j , Eritrea (East Africa) • Definitive Feasibility y Studyy due mid‐2010 • JORC resource 944,000oz @ 5.8g/t Au • Targeting initial high‐margin high margin production of 110,000oz pa • Forecast o ecast US$ US$424/oz/o cash cas
Slide 3: Corporate
Corporate For personal use only Snapshot 6 month share price • Shares Sh on issue i 137.4M 137 4M • Options on Issue 10.075M • Cash (Dec (Dec’09) 09) $7 3M $7.3M Board • Tim Goyder d (Executive Chairman) • Dr Doug Jones (Managing Director) • Mike Mik GGriffiths iffi h (Executive Director) • Anthony
Slide 4: Zara – Project Location
Zara – Project Location For personal use only • Emerging gold & base metal province • Gold endowment >20Moz – numerous deposits and mines dating back to ancient times • Minimal modern exploration • New world‐class projects being developed: • 13Moz Sukari Gold Mine (Egypt) – in p production (Centamin
Slide 5: Zara – Project Location
Zara – Project Location For personal use only 5
Slide 6: Zara Project – Regional Setting
Zara Project – Regional Setting For personal use only • Major regional structural corridor controls gold occurrences • Granted tenements cover 50km strike on this corridor (~600km²) ( 600km ) • Numerous prospects identified from artisanal gold workings • Koka Deposit has been main focus of explorati
Slide 7: Gold Deposit
Koka Gold Deposit For personal use only • JORC compliant resource of 5.04Mt @ 5.8 5 8 g/t /t Au A ffor 944,000oz 944 000 • Based on results from 109 diamond drill holes (~18,000m (~18 000m drilled) • 600m strike length, 20‐30m wide and open at depth • Only drilled to 250m below surface • Bulk of res
Slide 8: Gold Deposit – Looking North
Koka Gold Deposit – Looking North For personal use only Artisanal Workings 8
Slide 9: Gold Deposit – 3D Model
Koka Gold Deposit – 3D Model For personal use only 9
Slide 10: Gold Deposit – Cross Sections Recent Drilling
Koka Gold Deposit – Cross Sections Recent Drilling For personal use only 10
Slide 11: Gold Deposit – In-fill Drilling
Koka Gold Deposit – In‐fill Drilling For personal use only Hole From To Interval Gold (m) (m) (m) (g/t) ZARD128 44 75 31 6.48 including 44 46 2 38.22 including 52 55 3 18.68 79 82 3 7.78 104 108 4 3.25 116 117 1 31.48 143 144 1 100.5 4 ZARD 129 10 19 9 6.13 32 40 8 9.47 ZARD 130 6 12 6 26.92 29 46 1
Slide 12: Gold Deposit – Mineralisation
Koka Gold Deposit – Mineralisation For personal use only • Quartz‐carbonate‐sulphide stockwork veins cutting microgranite – similar in style to Sukari gold mineralisation • Visible gold & high gold values associated with sulphides in quartz‐carbonate veins • Sulphides overall less than 2% – no impac
Slide 13: Gold Deposit – Metallurgy
Koka Gold Deposit – Metallurgy For personal use only • Metallurgical testwork at AMMTEC Perth completed • Laboratory master composite prepared from 104 intervals representative of deposit • Initial test work indicates ore is metallurgically benign: • ~60% of gold recoverable by gravity • Overall rec
Slide 14: Scoping Study – Key Parameters
Scoping Study – Key Parameters For personal use only Parameter Average gold production ~110 000 oz per annum ~110,000 Life of mine ~ 6 years Total capital costs US$97.8 million Total cash costs US$424 per oz Total gold mined 712,000 oz Gold recoveries 95% Gold produced 677,000 oz Plant capacity 500,
Slide 15: Development Program
Development Program For personal use only • Lycopodium to complete Feasibility Study by mid‐2010: mid 2010: • 5,000m of diamond drilling to upgrade resource completed • Hydrological drilling – initial holes indicate adequate water supply • Metallurgical test work complete • Geotech drilling complete
Slide 16: Exploration – Near Mine
Koka Exploration – Near Mine For personal use only • Exploration to date has ffocused d on Kokak Main Zone – very little drilling outside this target g • Other targets identified in immediate vicinityy include: • Koka South Extension – IP resistivity anomaly • Koka East – artisanal workings on high‐
Slide 17: South
Koka South For personal use only • Strong IP resistivity anomaly identified 500m to the south of Koka • Ground G d follow‐up f ll confirmed zone of silica‐ sericite altered microgranite • Limited drilling confirmed Koka‐style mineralization ‐ up to 92g/t over 1m • Potential ‘blind’ system open down
Slide 18: East
Koka East For personal use only • Hangingwall of Koka Main Zone • Artisanal workings and prospecting p p g pits p over 500m strike • Koka‐style alteration and quartz stockwork mineralisation in microgranite • Outcrops over 50m width with rock chip samples up to 18 g/t • Very V littl little sampling
Slide 19: Zara Project – Regional Potential
Zara Project – Regional Potential For personal use only • No exploration p in district before 1998 when Koka was discovered • Koka g geological g settingg extends throughout ~600km² tenement block • Numerous prospects identified from artisanal gold workings • Drainage BLEG geochemical anomalies iden
Slide 20: Landsat Interpretation
Landsat Interpretation For personal use only • Study covered ~38,000km² • ~60 new targets identified within 615km² CHN tenement block • Both B th goldld (K (Koka‐type) k t ) & VHMS (Bisha‐type) base metal targets identified • Field work has already validated some of the targets on the ground • Regio
Slide 21: Eritrea Overview
Eritrea Overview For personal use only • Stable operating and social environment • Proactive Government stance on mining developments – “open for business” • Modern Mining Code • Increasing foreign exploration & mining investment – 13 groups now active i in i country 21
Slide 22: Summary
Summary For personal use only • Focused growth strategy via development off high‐grade Koka Gold Deposit • Targeting near‐term production of ~110,000oz 110 000 pa from f current ~1Moz 1M resource • Feasibility F ibilit Study St d due d mid‐2010 id 2010 • Strategic ground position in emerging gold &
Slide 23: 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 f from those h expressedd or i
Slide 24: Cornerstone of an African Gold Business
ASX: CHN For personal use only “Cornerstone of an African Gold Business ” Corporate Presentation February 2010 www.chalicegold.com.au
Chalice Gold Mines — Investor Presentation (February 2010) on 6ix