Chalice Mining Limited · ASX:CHN
Chalice Mining — Chalice Gold Mines — Shareholder Meeting (November 2009)
23 slides from Chalice Mining's shareholder meeting presentation, Nov 16, 2009
Slide 1: The New East African-focused Gold Company
For personal use only “The New East African‐focused Gold Company” AGM Presentation November 2009 www.chalicegold.com
Slide 2: Disclaimer
Disclaimer For personal use only The material used in this presentation is intended to be a summary of the proposed merger between Chalice Gold Mines Limited and Sub‐Sahara Resources NL and includes activities that are current and proposed based on the information available to Chalice Gold Mines L
Slide 3: CHN Overview
CHN Overview For personal use only Approx 137M shares on issue Board Market Cap of ~A$68M (based on Chalice share price of $0.50) Tim Goyder (Executive Chairman) Doug Jones (Managing Director) Focus on developing the high‐grade Zara Mike Griffiths (Executive Director) Gold Project j in Eritrea
Slide 4: Gold in the Arabian-Nubian Shield
Gold in the Arabian‐ Arabian‐Nubian Shield For personal use only Emerging gold and base metal province – current gold endowment >20Mozs Numerous multi‐million oz gold deposits and mines dating back to ancient times Largely unexplored in modern times Centamin’s 13Moz Sukari Gold Mine in E t c
Slide 5: Zara Project - Location
Zara Project ‐ Location For personal use only 5
Slide 6: Eritrea Overview
Eritrea Overview For personal use only Stable operating and social environment Proactive Government stance on mining developments – “open for business business” Modern Mining Code Increasingg foreign g exploration p & miningg investment – 13 ggroups p now active in country 6
Slide 7: Scoping Study Overview
Scoping Study Overview For personal use only Scoping Study finds Koka deposit at the Zara Project in Eritrea has the potential to be financially robust based on a gold price of US$800 an ounce Koka forecast to produce an average of 110,000 ounces a year at a cash cost of US$424 an ounce TTotal
Slide 8: Scoping Study Key Parameters
Scoping Study Key Parameters For personal use only Parameter Average gold production ~110,000 oz per annum Life of mine ~ 6 years Total capital costs US$97 8 million US$97.8 Total cash costs US$424 per oz Total gold mined 712,000 oz Gold recoveries 95% Gold ld produced d d 677,000 oz Plant capacity
Slide 9: 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 id (~600k (~600km²) ²) Numerous prospects identified from artisanal gold workings Koka Deposit has been main focus of explor
Slide 10: Gold Deposit
Koka Gold Deposit For personal use only Koka Deposit ‐ JORC compliant resource of 5 Mt at 5.8 5 8 g/t gold for 944,000 944 000 oz Based on results from 109 diamond drill holes ((~18,000m , drilled)) 600m strike length, 20‐30m wide and open at depth Only drilled to 250m below surface Bulk l
Slide 11: Gold Deposit - looking north
Koka Gold Deposit – looking north For personal use only Exploration Camp Drill access 11
Slide 12: Gold Deposit - mineralisation
Koka Gold Deposit – mineralisation For personal use only Galena Vi ibl G Visible Gold ld Pyrite Quartz 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 les
Slide 13: Gold Deposit - metallurgy
Koka Gold Deposit – metallurgy For personal use only Metallurgical testwork being undertaken at AMMTEC Perth laboratory 7 specifically drilled diamond core holes representative of deposit Master composite prepared from 104 intervals Initial testwork indicates ore is metallurgically benign ¾
Slide 14: Gold Deposit - 3D model
Koka Gold Deposit – 3D model For personal use only 14
Slide 15: Gold Deposit - cross sections
Koka Gold Deposit – cross sections For personal use only 15
Slide 16: 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 include: Koka Main Zone Koka East ¾ Koka East – artisanal workings on high‐grade Koka South Ext. quartz vein ¾ Koka South Extensi
Slide 17: South Extension
Koka South Extension For personal use only Strong IP resistivity anomaly l identified 500m to the south of Koka Ground follow‐up confirmed zone of silica‐sericite altered microgranite Limited drilling confirmed Koka‐ Koka style mineralization ‐ up to 20g/t over narrow widths >30ppb >10ppb >5pp
Slide 18: East
Koka East For personal use only ~80m in hangingwall of Koka Main Zone Artisanal workings g and prospecting p p gppits over 500m strike Koka style alteration and quartz Koka‐style stockwork mineralization in microgranite Outcrops over 50m width Very little sampling to date First‐pass dril
Slide 19: Zara Project - regional potential
Zara Project – regional potential For personal use only No exploration N l ti in i di district t i tbbefore f 1998 when Koka discovered Koka geological setting extends throughout ~600km2 tenement block Numerous prospects identified from artisanal gold workings Drainage BLEG geochemical anoma
Slide 20: Landsat Interpretation
Landsat Interpretation For personal use only Study covered ~38 000km2 38,000km ~60 new targets identified within 615km2 CHN tenement block Both ggold ((Koka‐type) yp ) & VHMS (Bisha‐ ( type) base metal targets identified Field work has already validated some of the targets on the ground Re
Slide 21: Forward Program
Forward Program For personal use only Lycopodium to complete Feasibility Study by May 2010 ¾ 5,000m of diamond drilling to upgrade resource underway ¾ Hydrological drilling –initial holes indicate adequate water supply ¾ Metallurgical M t ll i l testwork t t k almost l t complate ¾ Socio‐economic
Slide 22: Summary
Summary For personal use only Focused growth strategy via development of high high‐grade grade Koka Gold Deposit Targeting near‐term production of ~110,000 ozpa from current ~1Moz resource Expected completion of Feasibility Study in May 2010 Strategic ground position in highly gold endowed,
Slide 23: 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 Dr Doug Jones, a full‐time employee and Director of Chalice Gold Mines Limited, who is a Member of the Australasian Institute of Mining and Metallu
Chalice Gold Mines — Shareholder Meeting (November 2009) on 6ix