Chalice Gold Mines — Investor Presentation (February 2012)
20 slides from Chalice Gold Mines's investor presentation, February 2012
Slide 1: Chalice: A new chapter begins
Chalice: A new chapter begins • Cash: Sale of Eritrean gold asset for net US$90-95M • Today’s opportunity: Drilling in world-class VMS field •Tomorrow’s potential: Seeking world-class projects Corporate Presentation February 2012
Slide 2: Disclaimer and Competent Persons Statement
Disclaimer and Competent Persons Statement • 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 an
Slide 3: Overview
Overview Divestment of Eritrean gold asset a catalyst for new phase of growth… • Dual-listed international mining company (ASX: CHN, TSX: CXN) – Strong track record of identifying, securing & developing quality resource assets • Currently divesting Zara Gold Project, Eritrea (including 760,000oz Kok
Slide 4: Corporate Snapshot
Corporate Snapshot An experienced team with global capability – dual-listed on ASX/TSX Capital Structure: Shareprice ~A$0.24 Shares on Issue 250 million Market Capitalisation ~A$60 million Options on Issue 7 million Debt - Cash ~A$6.5 million Board and Senior Management Substantial Shareholders Tim
Slide 5: Regional Focus: the Arabian-Nubian Shield
Regional Focus: the Arabian-Nubian Shield Strong strategic foothold in one of the world’s exploration “hot spots” • Long mining history (+1,000 recorded ancient copper and gold mines) • Minimal modern exploration • World-class projects now being developed 5
Slide 6: Zara Gold Project: Background
Zara Gold Project: Background Quality gold project successfully progressed by Chalice to the cusp of production • Acquired through merger with Sub-Sahara Resources in April 2009: – Combined CHN’s strong $10M cash position with Sub-Sahara’s high- grade gold asset in East Africa • Followed an extensiv
Slide 7: Current Ground Position - Eritrea
Current Ground Position - Eritrea Tenements encompass high-grade gold deposit and outstanding exploration potential 1372 sq km 7
Slide 8: Koka Feasibility – Key Metrics
Koka Feasibility – Key Metrics A unique high-grade, open pit gold development with exceptional economics Gold price base case US$900 Ore Milled 4.6 Mt Grade 5.10g/t Au Strip Ratio 10.4:1 Gold Recovery 96.30% Life of mine 7 Years Mill throughput 70,000tpa Average annual gold production 104,000 oz Tot
Slide 9: Koka – Production Profile & Development
Koka – Production Profile & Development Clear pathway to near-term gold production for incoming Chinese group 9
Slide 10: Summary of Proposed Zara Transactions
Summary of Proposed Zara Transactions Sale of 30% interest to ENAMCO, 60% interest to China’s SFECO Group… • Agreement to sell 60% of Zara Project to China SFECO Group: – Payment of US$80M cash for Chalice’s share of Koka gold deposit – Subject to due diligence which is to be completed by 12 March 2
Slide 11: Koka South: Schematic Long Section
Koka South: Schematic Long Section New discovery provides potential additional value of up to US$20M • Narrow high-grade system • Drill-indicated strike length of 250m and open to south and at depth • Drill results include: – 1m @168g/t Au – 1m @139g/t Au – 5m @ 86.2g/t Au – 6m @21.4g/t Au • Diamond
Slide 12: Highly Prospective Exploration Portfolio: Eritrea
Highly Prospective Exploration Portfolio: Eritrea Tenement package prospective for both gold (Hurum) and VMS (Mogoraib North) 1372 sq km 12
Slide 13: All the Right Geological Ingredients….
All the Right Geological Ingredients…. ….but with very little modern exploration coverage • Favourable Geology – Granite-greenstone style geology – Properties straddle deep crustal- scale regional structure – ‘gold fairway’ • Multiple gold targets – Koka South – Debre Tsaeda – Konate-Alidar – Debre
Slide 14: Mogoraib North: On the Doorstep of a Giant
Mogoraib North: On the Doorstep of a Giant 555 sq km tenement secured in early 2011 – immediately north of Bisha Mine 14
Slide 15: Mogoraib North: On the Doorstep of a Giant
Mogoraib North: On the Doorstep of a Giant On the doorstep of one of the world’s premier new VMS mines 15
Slide 16: Mogoraib North Exploration Licence
Mogoraib North Exploration Licence Primary target polymetallic VMS but gold potential as well • VTEM survey completed mid- 2011 ~3825 line kilometres • Numerous bedrock conductor targets identified - possible VHMS • Follow-up ground geophysics and soil geochem used to refine targets • Drilling plann
Slide 17: Mogoraib North VTEM Anomalies
Mogoraib North VTEM Anomalies Looking for bedrock conductors with coincident gravity anomalies Gravity VTEM Profiles - Anomaly MN-T042 17
Slide 18: Summary: A New Chapter Begins
Summary: A New Chapter Begins Cash, Exploration Potential, Opportunity • Divestment of Zara Project targeted for completion by mid-year • Potential war-chest of US$90-95M following completion of SFECO and ENAMCO transactions • Cash-backing post-completion = 36-38cps • Drilling high-quality VMS targe
Slide 19: Analyst Coverage
Analyst Coverage AUSTRALIA EUROPE Bell Potter Ambrian Partners Limited Trent Allen Adam Kiley E: tcallen@bellpotter.com.au T: +612 9231 0880 E: adam.kiley@ambrian.com T: +44 20 7634 4777 Paterson Securities Limited Simon Tonkin E: STonkin@psl.com.au T: +618 9225 2816 NORTH AMERICA Haywood Securities
Slide 20: Chalice: A new chapter begins
Chalice: A new chapter begins • Cash: Sale of Eritrean gold asset for net S$90-95M • Today’s opportunity: Drilling world-class VMS field •Tomorrow’s potential: Seeking world-class projects Corporate Presentation February 2012
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