Chalice Mining Limited · ASX:CHN
Chalice Mining — Chalice Gold Mines — New Generation Gold 2009
37 slides from Chalice Mining's conference presentation, Nov 25, 2009
Slide 1: Koka Deposit: Discovery & Resource Development of a Lode Gold Deposit
For personal use only “Koka Deposit: p Discovery & Resource Development of a Lode Gold Deposit in the Neoproterozoic Terrain of Northern Eritrea.” New Generation Gold 2009 Presentation Dan Hamer – Country Manager (Eritrea) www.chalicegold.com
Slide 2: Disclaimer
Disclaimer For personal use only The material used in this presentation is intended to be a Case History of the Koka Gold Deposit and includes activities that are current and proposed based on the information available to Chalice Gold Mines Limited as at 24th November 2009. This presentation may
Slide 3: CHN Overview
CHN Overview For personal use only Approx 137M shares on issue Board Market Cap of ~A$60M (based on Tim Goyder (Executive Chairman) Chalice share price of $0.50) Focus on developing the high-grade Doug Jones (Managing Director) Zara Gold Project in Eritrea, East Africa Mike Griffiths (Executiv
Slide 4: Gold in the Arabian-Nubian Shield
Gold in the Arabian- Arabian-Nubian Shield For personal use only Emerging gold & base metal province – current gold endowment >20Mozs Numerous multi-million oz gold deposits & mines dating back to ancient times Largely unexplored in modern times Centamin’s Centamin s 13Moz Sukari Gold Mine i
Slide 5: Eritrea Overview
Eritrea Overview For personal use only Independent since 1993 Stable operating & social environment Pro-active Government stance on mining g developments p – “open p for business” Modern Mining Code Increasing foreign exploration & mining investment – 14 groups now active in country Firs
Slide 6: Eritrea – Regional Geology
Eritrea – Regional Geology For personal use only Cenozoic Volcanics Mesozoic Cover Neoproterozoic Basement 6
Slide 7: Eritrea – Tenements
For personal use only Eritrea – Tenements 7
Slide 8: Zara Project - Location
Zara Project - Location For personal use only 8
Slide 9: Zara Project – a short history
Zara Project – a short history For personal use only Artisanal workings since mid-1990s 400km² Zara Prospecting License granted to Dragon Mining in 1998 R Reduced d d to t 4x50km² 4 50k ² E Exploration l ti li licenses in i 2000 JV between Dragon g & Sub-Sahara in 2003,, Sub- Sahara took ove
Slide 10: Zara Project – Satellite Imagery
Zara Project – Satellite Imagery For personal use only Landsat 742 Image of northern E it Eritrea NNE trending structural domains Blue – Adobha Abiy Terrain Green – Nacfa Terrain Chalice Tenements outlined in white Prominent regional flexure visible 10
Slide 11: Zara Project – Regional Setting
Zara Project – Regional Setting For personal use only Major regional structural corridor controls t l mineral i l occurrences Tenements cover 50km strike on this corridor (~600km²) ( 600km ) Numerous prospects identified from artisanal gold workings & gossans Koka Gold Deposit has been main
Slide 12: Zara Project – Tenement Geology
Zara Project – Tenement Geology For personal use only Koka Gold Deposit Konate Prospect 12
Slide 13: Koka – Exploration
Koka Gold Deposit – Exploration For personal use only Gechemical Surveys included rock chip chip, gridded soil sampling and trenching for gold & multi- elements Geological Mapping at 1:4,000 Phase 1 Exploration Drilling – 4 holes at 160m spacing 2005-6 Drilling results included: ZARD002 33 3
Slide 14: Koka – looking north
Koka Gold Deposit – looking north For personal use only 14
Slide 15: Koka – looking north
Koka Gold Deposit – looking north For personal use only 15
Slide 16: Koka – Resource Drilling
Koka – Resource Drilling For personal use only Phase 2 Resource Drilling – 40mx40m spacing (29 holes) 2006-7 Phase 3 Resource Drilling – 40mx20m spacing p g (46 ( holes)) 2007 Phase 4 Resource Drilling – additional shallow, strike extension, structural & metallurgical drilling (43 holes) 2007-
Slide 17: Koka – Resource Estimation
Koka – Resource Estimation For personal use only Snowden Mining Industry Consultants (May 2007) - reported an Inferred Resource at Koka of 7.00Mt @ 3.40g/t for 0.76Moz of gold from drill holes ZARD001-038 Coffey Mining (February 2008) – estimated 1.04Moz of gold from 5.13Mt ore at an average gra
Slide 18: Koka – 3D Model
Koka Gold Deposit – 3D Model For personal use only 18
Slide 19: Koka – X Sections
Koka Gold Deposit – X Sections For personal use only 19
Slide 20: Koka – DEM
Koka Gold Deposit – DEM For personal use only DEM Survey S area 10km² 10k ² Debre Konate 1,675m 194,000 data points ZARD008 970m Zara Camp 725m Koka Resource surface expression 20
Slide 21: Koka - Petrography
Koka Gold Deposit - Petrography For personal use only Micro-granitic host rock showing prismatic phenocrysts of plagioclase (altered to albite) and micrographic intergrowths of quartz and K-spar K spar (altered to albite) 21
Slide 22: Mineralisation
Koka Gold Deposit Mineralisation For personal use only Galena Visible Gold Pyrite Stockwork of q quartz veins cutting g micro-granite; g similar in style y to Sukari gold mineralisation Visible gold & high gold values associated with sulphides (pyrite, sphalerite, galena & chalcopyrite in quartz
Slide 23: Koka - Sulphides
Koka Gold Deposit - Sulphides For personal use only Native gold in galena with accompanying pyrite as sulphidic aggregates in quartz-sulphide veins cutting the micro-granite 23
Slide 24: Koka – Metallurgy
Koka Gold Deposit – Metallurgy 1 For personal use only Ammtec Limited Phase 1 Test Work (2007) 3 x 10kg samples of split core from 3 drill holes Acid Mine Drainage - moderate to high acid generating potential Gravity test work indicates potential for high level of gold recovery Cyanidation g
Slide 25: Koka – Metallurgy
Koka Gold Deposit – Metallurgy 2 For personal use only Phase 2 Metallurgical Test Work (2008- 2009) 7 metallurgical drill holes (HQ) completed in 2008 & a 3 tonne bulk sample sent to Ammtec Li it d Initial Limited. I iti l results lt confirm fi findings fi di off the th Phase 1 Test Work: 60% reco
Slide 26: Koka – Age Dating
Koka Gold Deposit – Age Dating For personal use only Lead isotope radiometric dating of galena from the Koka Gold Deposit gives a model age of 495 +/-30Ma Emplacement is coeval with ith the th late-stage l t t plutonism associated with y the Pan African Cycle 26
Slide 27: Koka – Geophysics
Koka Gold Deposit – Geophysics For personal use only Orientation Survey (Ground-based IP and Resistivity) in 2007 covered Koka Main Zone Mineralised micro-granite corresponds to conspicuously high resistivity zone IP Resistivity R i ti it Survey S extended t d d southwards after surface geoche
Slide 28: Koka – EBS/EIA
Koka Gold Deposit – EBS/EIA For personal use only E i Environmental t l Baseline B li Study St d Atmospheric environment – meteorology, air quality & noise Aquatic environment – surface hydrology & water quality; hydrogeology & ground water quality Funeral mounds Waste survey – waste rock & ta
Slide 29: Koka - Hydrogeology
Koka Gold Deposit - Hydrogeology For personal use only 30
Slide 30: Koka – Water Drilling
Koka Gold Deposit – Water Drilling For personal use only Water Drilling 7 water drill holes (8”) completed: ZAWP007 – 15 l/sec ZAWP009 – 7 l/sec ZAW/P010 – 20 l/sec ZAWP011- >20 l/sec Two drill holes collapsed One drill hole dry 31
Slide 31: Exploration – 'Near Mine'
Koka Exploration – ‘Near Mine’ For personal use only Exploration to date focused on Koka Main Zone – very little drilling outside this target Other targets identified Koka k Main include: Zone ¾ Koka East – artisanal Koka East workings on high- grade quartz vein zone Koka South Ext. ¾ Koka South
Slide 32: South Extension
Koka South Extension For personal use only Strong IP resistivity anomaly identified 500m to the south of Koka Ground follow-up confirmed zone of silica-sericite altered micro-granite Drilling confirmed Koka-style Koka style alteration and mineralization Potential ‘blind’ system open down plu
Slide 33: Zara Project – Regional Setting
Zara Project – Regional Setting For personal use only No systematic exploration in district before 1997 when Koka discovered Koka geological setting extends throughout ~600km2 tenement block N Numerous prospects t id identified tifi d from f artisanal gold workings Drainage BLEG geochemical
Slide 34: CHN Forward Program
CHN Forward Program For personal use only Lycopodium appointed to lead engineering studies E Experienced i d ‘Owner’s ‘O ’ Representative’ R i ’ appointed i d– metallurgist Steven Chadwick Koka Scoping Study completed in October 2009 Complete Koka Feasibility Study in May 2010 ¾ 5,000m of di
Slide 35: Summary
Summary For personal use only Focused g growth strategy gy via development p of high-grade Koka Gold Deposit Targeting near-term production of ~100,000 ozpa from current ~1 1.00Moz 00Moz resource Scoping Study completed in October 2009, Feasibility Study to be completed in May 2010 Strategic
Slide 36: Risk versus reward……
Risk versus reward…… For personal use only If you want to make a splash............ splash TAKE THE PLUNGE! 37
Slide 37: Competent Persons Statement
Competent Persons Statement For personal use only The information in this report that relates to Exploration Results is based on information compiled by Mr Dan Hamer, a full‐time employee and Country Manager (Eritrea) of Chalice Gold Mines Limited, who is a Chartered Professional Geologist. Mr Hamer