Chalice Mining Limited · ASX:CHN
Chalice Mining — Chalice Gold Mines — Investor Presentation (July 2010)
23 slides from Chalice Mining's investor presentation, Jul 27, 2010
Slide 1: Building an African Gold Mining Powerhouse
ASX: CHN For personal use only • Development targeted for 2011 • 104,000 oz per year producer • Huge exploration upside Building an African Gold Mining Powerhouse Corporate Presentation July 2010 www.chalicegold.com
Slide 2: 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 from those expressed or implie
Slide 3: Chalice Snapshot
Chalice Snapshot For personal use only • Creating shareholder wealth through exploration and production: • Focused on East Africa, Listed on ASX (CHN), Listing on TSX (August 2010) • 100% owned Zara Gold Project, Eritrea (subject to gov’t project participation rights): • High-grade Ore Reserves of 7
Slide 4: Corporate Snapshot
Corporate Snapshot For personal use only Capital Structure • Shares on issue 181M • Options on Issue 13.075M • Cash (est. July 10) ~A$6.6M Board • Tim Goyder (Executive Chairman) 6 month share price • Dr Doug Jones (Managing Director) • Mike Griffiths (Executive Director) • Anthony Kiernan (Non-Exec
Slide 5: Zara – Project Location
Zara – Project Location For personal use only 5
Slide 6: Koka – Outstanding Returns, Outstanding Potential
Koka – Outstanding Returns, Outstanding Potential For personal use only • Positive Feasibility Study completed • US$122M development of open pit mining operation and on-site treatment plant • ~700,000tpa ore processing to produce 104,000oz pa • Forecast cash operating cost of just US$338/oz • NPV of
Slide 7: Koka Project – Key Financial Outcomes
Koka Project – Key Financial Outcomes For personal use only 100% Project Financial Outcomes* Gold Price (Unleveraged) $900 $1,200 $1,500 Life-of-mine EBITDA $381M $589M $797M Average annual EBITDA $54M $84M $114M NPV5% after-tax cash flows $99M $196M $293M IRR after tax 22% 35% 45% Payback period (y
Slide 8: Koka Gold Deposit
Koka Gold Deposit For personal use only • JORC-compliant Indicated Resource of 5.0Mt @ 5.3 g/t Au for 840,000oz gold • Probable reserve – 4.6Mt @ 5.1g/t • Based on results from 137 diamond drill holes (~21,000m drilled) • Quartz stockwork system in microgranite • ~600m strike length, 20-30m wide • B
Slide 9: Koka Gold Deposit – 3D Pit Image
Koka Gold Deposit – 3D Pit Image For personal use only 9
Slide 10: Koka Gold Deposit – Cross Sections
Koka Gold Deposit – Cross Sections For personal use only Stage 1 pit design – pd4tr Whittle shell 3 Whittle shell 18 Final pit design – pd1tr 10
Slide 11: Koka Gold Mine – Plant Layout
Koka Gold Mine – Plant Layout For personal use only 11
Slide 12: Koka Gold Mine – Site Layout
Koka Gold Mine – Site Layout For personal use only Plant Dump A Dump B Dump C 12
Slide 13: Exploration Upside – The Bigger Picture
Exploration Upside – The Bigger Picture For personal use only • Zara Project located within 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 G
Slide 14: Chalice – Huge Exploration Upside
Chalice – Huge Exploration Upside For personal use only • Chalice has an interest in ~24,000 sq km of highly prospective tenements in Eritrea plus the 615km2 Zara Project • Recent exploration has identified several zones of extensive mineralisation in addition to the existing Koka resource, within t
Slide 15: Exploration – 'Near-Mine'
Exploration – ‘Near-Mine’ For personal use only • Other targets identified in immediate vicinity include: Koka • Konate – artisanal workings South on quartz stockwork • Koka South Extension – IP resistivity anomaly • Deep penetration IP survey planned to cover 6 x 1.5 km Koka-Konate corridor 15
Slide 16: Koka South
Koka South For personal use only KOKA • Strong IP resistivity anomaly identified 200- 500m south of Koka • Ground follow-up confirmed zone of silica- sericite altered microgranite • Limited drilling confirmed Koka-style 8.9/1 mineralisation – up to 92g/t over 1m 24/2 2.2/1 • Potential ‘blind’ system
Slide 17: Konate
Konate For personal use only • Zone of intensive artisanal workings 5km south of Koka: • ~600m by up to 30m wide • quartz vein stockwork in silica-sericite altered microgranite • limited historical drilling (5 holes) provided inconclusive results • IP survey conducted post-drilling suggests main zon
Slide 18: Konate
Konate For personal use only Konate quartz veins by thickness in mm 200 m 18
Slide 19: Regional Geochemical Sampling
Regional Geochemical Sampling For personal use only • Systematic geochemical drainage sampling best method for this terrane • Compelling initial BLEG (Bulk Leach Extractable Gold) and multi-element analyses result received • Six samples received >10ppb with highest being 362ppb • Results >5ppb consi
Slide 20: 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 – 17 groups now active in country 20
Slide 21: Eritrea Mining Act
Eritrea Mining Act For personal use only Prospecting licence Royalties • One year, not renewable,not transferrable • Up to 5% for precious metals and 3.5% for other • Maximum size 100km2 metallic minerals • Licence fee (US)$33.33 • Annual rental (US)$3.33/km2 Government Participation • 10% free-carr
Slide 22: Summary
Summary For personal use only • Koka Gold Deposit: • Advanced high grade gold deposit • Strong economics • Low technical risk • Feasibility Study completed • Aggressive exploration programs underway to expand resource base • Strategic ground position in emerging gold & base metal province • Experien
Slide 23: Building an African Gold Mining Powerhouse
ASX: CHN For personal use only • Development targeted for 2011 • 104,000 oz per year producer • Huge exploration upside Building an African Gold Mining Powerhouse Corporate Presentation July 2010 www.chalicegold.com
Chalice Gold Mines — Investor Presentation (July 2010) on 6ix