Chalice Mining Limited · ASX:CHN
Chalice Mining — Chalice Gold Mines — Gold and Alternative Investments Conference 2019
32 slides from Chalice Mining's conference presentation, Oct 24, 2019
Slide 1: Gold and Alternative Investments Conference
For personal use only Gold and Alternative Investments Conference Sydney – 24 October 2019 ASX : CHN | TSX: CXN | OTCQB: CGMLF
Slide 2: Forward looking statements and disclosures
Forward looking statements and disclosures For personal use only 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 Limit
Slide 3: A unique, well-funded exploration business
A unique, well- We are exploring for tier-1 scale (>US$1bn NPV) funded exploration discoveries in frontier areas 1 For personal use only business • Gold undercover in northern Victoria • Nickel sulphides in the Kimberley (WA) We have the finances to think big • ~A$30M in working capital and investme
Slide 4: We are targeting big discoveries in underexplored provinces of Australia
1 Pyramid Hill Gold Project, VIC For personal use only +++ Highly prospective but underexplored → a new opportunity We are targeting big discoveries in +++ Large-scale + high-grade targets → strong commercial drivers for exploration underexplored +++ 5,190km2 area → potential for multiple discoverie
Slide 5: Capital Structure and Financials
Capital Structure and Financials We have a tight capital structure and a very strong Equity listings Shares on Issue 274.1M Market capitalisation financial position ASX: CHN | TSX: CXN | OTCQB: CGMLF Shares (F/D) 291.2M ~A$53M (@ A$0.19ps) For personal use only Working Capital & Top Shareholders Deb
Slide 6: A dynamic group of accomplished mine finders and sound commercial managers
We are a dynamic group of accomplished mine finders and sound commercial managers For personal use only Tim Goyder, Executive Chairman Dr Kevin Frost, GM – Exploration, BSc (Hons) PhD MAIG • 40+ year industry veteran with track record of success as an • Geologist with 30+ years experience investor,
Slide 7: Since our 2006 IPO, we have acquired well, advanced projects quickly
Since our 2006 IPO, we have acquired well, advanced projects quickly and generated >A$100M in after-tax proceeds from asset sales For personal use only Refined strategy to Zara Gold Project in Eritrea sold for focus on exploration opportunities $7.5M raised in IPO ~US$114M (pre-tax) on ASX to progre
Slide 8: Pyramid Hill Gold Project, Victoria
Drilling at Pyramid Hill Gold Project, Oct-2019 Pyramid Hill Gold Project For personal use only Victoria 8
Slide 9: Pyramid Hill is located in the hotly contested Bendigo Zone of Victoria
Pyramid Hill is located in the hotly contested Bendigo Zone of Victoria – a historic >60Moz region that is now capturing global attention once again For personal use only N Chalice’s tenure covers 60% of the ~7,000km2 >60Moz of gold production has come from 50km prospective covered area outcropping
Slide 10: Kirkland Lake Gold's Fosterville Gold Mine has placed the district back on the map
Kirkland Lake Gold’s Fosterville Gold Mine has placed the district back on the map thanks to bonanza gold grades and ultra-low production costs For personal use only Fosterville Mineral Reserves History 2019 op. cash costs guidance Current Mineral Reserve Ultra-high grade 31.0 Swan Zone US$130- Grad
Slide 11: Chalice has an undervalued ~5,190km2 land holding in this underexplored district
Chalice has an undervalued ~5,190km2 land holding in this exciting, underexplored district; we are targeting Fosterville style discoveries For personal use only Chalice is in good company in the district… Bendigo Zone Company Enterprise Value (A$) Stawell Zone Chalice targets Newmont Goldcorp ~55,00
Slide 12: Chalice has defined several large targets under thin cover
Chalice has defined several large targets under thin cover after completing regional soil sampling, ground geophysics and one phase of recon AC drilling For personal use only NSW VIC Four Eagles Northern Bendigo Zone Karri Tandarra Fosterville Melbourne Beech Ironbark Sebastian Zone Bendigo Chalice
Slide 13: Drilling is underway at the high priority Ironbark and Karri Targets
Drilling is underway at the high priority Ironbark and Karri Targets, where anomalous gold was intersected in wide-spaced shallow holes in Q2 2019 For personal use only • ~39km of shallow recon AC 1. Ironbark Target (25-75m cover) 2. Karri Target (50-70m cover) Muckleford Area drilling completed in
Slide 14: A ~650m wide zone of anomalous gold and pathfinders intersected at Ironbark
1. A ~650m wide zone of anomalous gold and pathfinders was intersected at the Ironbark Target, coincident with a ~380m diameter diorite intrusion For personal use only • Petrography confirmed the intrusion as a highly prospective Fe-rich diorite • Hole 245 hit gold bearing quartz veining in the dior
Slide 15: Anomalous gold and pathfinders intersected at Karri in Phase 1
2. Anomalous gold and pathfinders intersected at Karri in Phase 1 point to a potentially significant footprint – the size of the prize is significant For personal use only Karri Target (50-70m cover) ~22Moz Bendigo Goldfield 1VD Gravity Bendigo N Goldfield outline >8Moz Fosterville Gold Mine 350m wi
Slide 16: Catalyst Metals have shown high-grade discoveries undercover can drive value
Catalyst Metals (ASX: CYL) have shown that high-grade discoveries undercover in this area can drive significant value for shareholders For personal use only Catalyst Metals (ASX: CYL) Share Price (A$) • Catalyst’s EV has increased from 2.50 HIGH 2.40 ~A$30M to ~A$180M Hancock 2.25 St Barbara Limited
Slide 17: King Leopold Nickel Project, Western Australia
King Leopold field reconnaissance, Jun-2019 King Leopold Nickel Project For personal use only Western Australia 17
Slide 18: The King Leopold Nickel Project covers 1,800km2 in the west Kimberley
The King Leopold Nickel Project covers 1,800km2 in the frontier and largely unexplored King Leopold Orogen of the west Kimberley For personal use only 600,000mE 700,000mE 800,000mE • Frontier province highly prospective for 50km magmatic Ni-Cu-Co sulphide deposits 8,200,000mN N • Minimal modern expl
Slide 19: Immediate focus is the Ruins Area, where several nickel sulphide targets are defined
Chalice’s immediate focus is the Ruins Area, where several nickel sulphide targets have already been defined For personal use only • Merlin (IGO-Buxton) hosts drill intercepts in Ruins Dolerite with grades up to 8.14% Ni, 5.26% Cu and 0.69% Co Merlin (IGO-Buxton) • 11 airborne EM targets defined by
Slide 20: So why invest?
So why invest? For personal use only We are drilling targets that have significant scale 1 potential – a discovery will ‘move the needle’ ~A$30M in working capital and investments 2 (~A$0.11ps)1 – we are well funded >A$100M generated to date – team has a solid 3 technical and commercial track record
Slide 21: Thank You
For personal use only Thank You Level 2, 1292 Hay Street, West Perth WA 6005, Australia +61 8 9322 3960 info@chalicegold.com www.chalicegold.com linkedin.com/company/chalice-gold-mines twitter.com/chalicegold ASX : CHN | TSX: CXN | OTCQB: CGMLF
Slide 22: Appendix
For personal use only Appendix 22
Slide 23: Our strategy is to systematically acquire and explore in premier terranes
STRATEGY Our strategy is to systematically acquire and explore in premier terranes; aiming to address the rapid decline in tier-1 scale discoveries worldwide For personal use only Exploration Expenditures and Primary Gold discovered globally Tier-1 scale discoveries (>US$1bn NPV) now represent only
Slide 24: Chalice's portfolio includes generative opportunities, JVs, royalties and investments
PORTFOLIO Chalice’s portfolio also includes several generative exploration opportunities, non-operated JVs, royalties and investments For personal use only Australia King Leopold Warrego North Nickel Project Copper-Gold Project (70-100%) (85-100%) Flinders River Vanadium Project (100%) Royalties • N
Slide 25: Gold Road Resources is now a >A$1Bn company
CASE STUDY Gold Road Resources (ASX: GOR) started with greenfield exploration in an underexplored belt and are now a >A$1Bn company For personal use only Gold Road (ASX: GOR) Share Price (A$) 1.80 • The Gruyere discovery was located HIGH 1.625 1.60 Mining in a similar underexplored yet Feasibility C
Slide 26: We commenced activities in Victoria in Q2 2018 and are in the reconnaissance phase
PYRAMID HILL GOLD PROJECT We commenced activities in Victoria in Q2 2018 and are in the reconnaissance phase, targeting a 5Moz+ gold discovery undercover For personal use only Mar 2018 Additional 1700km2 staked Pre-Chalice (Muckleford expansion Nov 2018 – July 2019 Minimal modern and Mt William) May
Slide 27: Gold deposits of the Bendigo Zone are controlled by major regional faults
PYRAMID HILL GOLD PROJECT The gold deposits of the Bendigo Zone are controlled by major regional faults in a N-S orientation For personal use only • Conformable linear trends of gold occurrences associated with N-S trending, steep westerly dipping regional faults • Basement host rocks comprise turbi
Slide 28: Bendigo Zone gold deposits are from the same class of orogenic gold deposits
PYRAMID HILL GOLD PROJECT The Bendigo Zone gold deposits are from the same class of orogenic gold deposits but show subtle differences related to structure & host rock control For personal use only Schematic Cross Section Longitudinal Section N Bendigo Fosterville 28 Fosterville Bendigo Source: Fost
Slide 29: Northern Bendigo Zone basement resides under Murray Basin cover
PYRAMID HILL GOLD PROJECT The historically neglected northern Bendigo Zone basement resides under Murray Basin cover, presenting a sizeable exploration opportunity For personal use only • The continuation of the Bendigo Zone geology to the north under cover is well established • The major regional f
Slide 30: The 2007 Gold Undercover Report outlined the huge discovery potential
PYRAMID HILL GOLD PROJECT The 2007 Gold Undercover Report outlined the huge discovery potential undercover – prior to Fosterville Swan Zone discovery For personal use only Parameter P90 P50 (mean) P10 No. of significant 15 25 32 goldfields undercover Undiscovered gold 9 32 58 endowment (Moz) • Monte
Slide 31: Wide-spaced shallow AC drilling aims to hit alteration halos
PYRAMID HILL GOLD PROJECT Wide-spaced shallow AC drilling aims to hit alteration halos and secondary dispersion zones in basement, which typically surround gold zones in Victoria For personal use only Conceptual cross section along phase 1 drill lines (representative scale) ~100m Secondary dispersio
Slide 32: Reconnaissance AC drilling has identified four large-scale targets at Muckleford
PYRAMID HILL GOLD PROJECT Reconnaissance AC drilling has identified four large-scale targets to date at the Muckleford Area For personal use only 1. Karri: shallow gold intersections up to 0.66g/t Au over ~15km of strike, under 50-70m of Murray Basin cover, ~20km west of Four Eagles (typical Bendigo
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