Slide 1: Investor Presentation
The golden plains of the north Bendigo region Investor Presentation March 2019 ASX : CHN TSX : CXN
Slide 2: Forward looking statements and disclosures
Forward looking statements and disclosures 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, fil
Slide 3: A unique, well-funded explorer
A unique, well-funded District-scale exploration projects in tier-1 high- explorer 1 grade gold provinces – Bendigo and Val-d’Or 3 rigs currently drilling large-scale greenfield targets Unique strong financial position 2 c. A$26M in cash and current assets at 31-Dec-18 (~A10cps) – no capital raised
Slide 4: Portfolio of District-Scale, High Impact Projects in Australia and Canada
Portfolio of District-Scale, High Impact Projects in Australia and Canada Australia Canada King Leopold Nickel-Copper- PGE Project (100%) Flinders River Warrego North Vanadium Project Copper-Gold Project (100%) (70-100%) Yilgarn Gold Project (95-100%) Auralia Nickel- Copper-Gold Project (100%) Julim
Slide 5: Our strategy is to explore greenfield terranes in premier jurisdictions
Our strategy is to explore greenfield terranes in premier jurisdictions; aiming to address the decline in tier 1 discoveries worldwide Exploration Expenditures and Primary Gold discovered globally Tier 1 discoveries (>US$1bn NPV) now represent only ~2% of all discoveries worldwide. None in Australia
Slide 6: Pyramid Hill Gold Project Victoria
Drilling at Pyramid Hill Gold Project, Dec-2018 Pyramid Hill Gold Project Victoria 6
Slide 7: 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 domain that has produced >60Moz of high-grade gold • All historic production (>60Moz) has come from outcropping (easy to find) areas to the South, i.e.: Pyramid Hill Gold Project (undercover North • Bendigo ~22Moz @ 15g/t Au
Slide 8: Kirkland Lake's Fosterville has placed the district back on the global map
Kirkland Lake’s Fosterville has placed the district back on the global map thanks to bonanza gold grades and ultra-low production costs Fosterville Mineral Reserves History Op. cash costs guidance 2019 Current Mineral Reserve Ultra-high grade 31.0 US$170- 2.7Moz at Swan Zone Grade Au (g/t) discovere
Slide 9: Chalice is now a dominant player in this underexplored district
Chalice is now a dominant player in this exciting, underexplored district, with a >4,500km2 land holding near Fosterville and Bendigo Muckleford Area • NW of historic 22Moz Bendigo @ 15g/t Au Bendigo Stawell Zone Goldfield and West Zone of the high-grade Four Eagles and Tandarra Projects • <50 effec
Slide 10: Maiden 15,000m reconnaissance drill programme commenced at Muckleford Area
Maiden 15,000m reconnaissance drill programme commenced in November at the Muckleford Area, testing three large-scale target areas NW of Bendigo 1VD Gravity • Wide spaced (3km+) reconnaissance drill lines underway utilising new, cost effective multi-purpose AC/RC rig • Testing the top 30m of basemen
Slide 11: Catalyst Metals has shown high-grade discoveries can be made under cover
Catalyst Metals (ASX: CYL) have shown that high-grade discoveries can be made in areas of cover in the North Bendigo Zone Catalyst Metals (ASX: CYL) Share Price (A$) 2.00 HIGH 2.0 • Catalyst’s EV has increased from St Barbara Limited ~A$30M in 2016 to ~A$110M in ~3 years (ASX: SBM) 1.75 increases to
Slide 12: East Cadillac Gold Project Quebec
Drilling at East Cadillac Gold Project, Dec-2017 East Cadillac Gold Project Quebec 12
Slide 13: East Cadillac is located in the prolific Abitibi greenstone belt
East Cadillac is located in the prolific Abitibi greenstone belt; a belt with known gold endowment of >210Moz • Chalice controls >27km of strike along the Larder Lake – Cadillac Fault – the most prolific gold trend in the southern Abitibi (>100Moz of gold endowment) • Every 40-50km along this struct
Slide 14: The Project is along strike from several globally significant gold mines
The Project is along strike from several globally significant gold mines and surrounds a historic high-grade gold mine LaRonde >12Moz @ ~5g/t Au Sigma Lamaque CANADA >11Moz @ ~7g/t Au Chimo 0.4Moz @ ~5g/t Au *17% owned by Agnico Eagle YAMANA / AGNICO EAGLE AGNICO Malartic Open Pit EAGLE >16Moz @ ~1.
Slide 15: The Project has all season access and excellent nearby infrastructure
The Project has all season access, excellent nearby infrastructure and is within trucking distance to multiple gold processing facilities Canadian Malartic Val-d’Or Gold Deposit/Mine Mine (>16Moz) Agnico Eagle & ~35km by sealed highway from town of Yamana Val-d’Or (~30,000 people) Sigma Lamaque Mine
Slide 16: Previously segmented ownership restricted exploration; we consolidated ownership with 14 deals
Previously segmented ownership restricted effective exploration in the district for decades; we have consolidated ownership 80-100% with 14 deals East Cadillac Gold Project Historic gold mine Chalice completed DDH N Chalice 100% owned claims Chalice 2019 phase 1 planned DDH Globex / Bateman Option c
Slide 17: Soil sampling and 3D-IP identified new large-scale Legrand and Anderson targets
Recent soil sampling and 3D-IP survey have identified the new large-scale Legrand and Anderson targets – currently being drilled 330,000mE 340,000mE • 8,100m diamond drill programme currently underway on two targets: Anderson Legrand Target North Contact • 3.4km x 1.3km coherent MMI gold-in-soil ano
Slide 18: Corporate
Corporate 18
Slide 19: Our track record is sound; we have acquired well and advanced projects quickly
Our track record is sound; we have acquired well, advanced projects quickly and generated A$100M+ in net proceeds from sales Zara Gold Project in Refined Eritrea sold for strategy to Zara Gold focus on Listed on Project in ~US$114M, 10cps / Cameron exploration, Australian Eritrea A$25M capital retur
Slide 20: Corporate snapshot
Corporate snapshot Capital Structure and Financials Top Shareholders Stock Exchanges ASX: CHN | TSX: CXN ASX Tim Goyder (Exec Chairman) 17% TSX Shares – on issue 266.6M Shares – fully diluted 287.1M Share price (ASX) A$0.135 Franklin Templeton 12% 52 week high / low (ASX) A$0.20 / A$0.11 3mth avg da
Slide 21: Board and management team
Board and management team Tim Goyder, Executive Chairman • 40+ year industry veteran • Long track record of success as an investor, entrepreneur and company director • Largest shareholder of Chalice (~17%) Dr Kevin Frost, GM – Exploration, BSc (Hons) PhD MAIG • Geologist with 30+ years experience •
Slide 22: Two potentially transformational drill programmes underway in Victoria and Quebec
Two potentially transformational drill programmes underway in Victoria and Quebec – strong news flow in H1 2019 Indicative exploration programme 2018 2019 Oct Nov Dec Jan Feb Mar Apr May Jun BLEG Mt Geochem William Final assays Geophysics Pyramid Hill, Phase 2 AC/RC at Victoria Drilling 15,000m phas
Slide 23: Company Highlights
Company Highlights 1 Two significant drilling programmes underway 2 ~A$21M in cash 3 ~A$100M+ generated from asset sales 4 Team with solid track record 23
Slide 24: Thank You
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 24
Slide 25: Appendix Pyramid Hill Gold Project, Victoria
Appendix Pyramid Hill Gold Project, Victoria 25
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+ discovery Mar 2018 Additional 1700km2 staked Pre-Chalice (Muckleford expansion Nov 2018 – Minimal modern and Mt William) Feb 2019 exploration and Dec 2017 Reconnaissance li
Slide 27: Previous gold exploration over the Muckleford Area is limited
PYRAMID HILL GOLD PROJECT – MUCKLEFORD AREA Previous gold exploration over the Muckleford Area is limited, with <50 effective drill holes over a 70 x 20km area Drilling (LHS) • Previous gold exploration conducted by Homestake, St Barbara, Providence Metals, Metex over parts of current project teneme
Slide 28: Our exploration approach – wide spaced reconnaissance AC drill lines
PYRAMID HILL GOLD PROJECT – MUCKLEFORD AREA Our exploration approach – wide spaced reconnaissance AC drill lines to complete a first pass test over a very large area cost effectively • Commenced maiden 15,000m reconnaissance AC drill programme within the Muckleford Area in Nov-18 to test priority ge
Slide 29: Drilling at the West Target identified a wide zone of elevated Arsenic
PYRAMID HILL GOLD PROJECT – MUCKLEFORD AREA Drilling to date at the West Target has identified a wide zone of strongly elevated Arsenic (pathfinder) over several holes • Strong Arsenic anomalism up to 412ppm in Castlemaine Gp Sediments, within coherent and open >50ppm anomaly • Arsenic an important
Slide 30: Drilling at Muckleford is targeting a Bendigo style deposit
PYRAMID HILL GOLD PROJECT – MUCKLEFORD AREA Drilling at Muckleford is targeting a Bendigo style deposit (~22Moz @ 15g/t Au) – the size of the prize is significant Schematic cross section showing Saddle and Bedded Reefs Bendigo Goldfield New Chum Line Large, high grade deposit ~2.6Moz @ 15.1g/t Au of
Slide 31: Soil sampling completed over the Mt William Area
PYRAMID HILL GOLD PROJECT – MT WILLIAM AREA Soil sampling has been completed over the Mt William Area, with several gold-in-soil anomalies found • Reconnaissance surface soil sampling completed over Cambrian Volcanics and Castlemaine Gp Sediments of the Bendigo Zone, along Mt William Fault • Several
Slide 32: Appendix East Cadillac Gold Project, Quebec
Appendix East Cadillac Gold Project, Quebec 32
Slide 33: We have taken a systematic, ground-up approach to exploration over the last 2 years
EAST CADILLAC GOLD PROJECT We have taken a systematic, ground-up approach to exploration over the last 2 years since acquisition, targeting a 5Moz+ discovery Dec 2017 Nov 2016 Option May-Sept 2018 deal with Oct 2017 – Jan-Mar 2019 Option deal Khalkos to Jan 2018 Farm-in deal Legrand and Oct 2016 wit
Slide 34: Drilling has highlighted that Chimo may be part of a larger gold system
EAST CADILLAC GOLD PROJECT Drilling has highlighted that Chimo may be part of a larger (>5km of strike) gold system, and also yielded several new, wide open mineralised zones 1 Nordeau West Historical Resource North Contact Mineralised trend Ind Resource 30koz @ 4.2g/t Au 23.5m @ 1.12g/t Au f/ 180.5
Slide 35: Drilling confirmed >3.5km of strike is mineralised at Simon West
EAST CADILLAC GOLD PROJECT Drilling confirmed >3.5km of strike is mineralised at Simon West, with multiple steep dipping gold zones with high grade (~18g/t Au) cores Plan view – Simon Far West to Nordeau West Cross section through holes 20-21 (looking west) Simon Far West B A N Simon West Nordeau We
Slide 36: The North Contact discovery was made in Q2 2018
EAST CADILLAC GOLD PROJECT The North Contact discovery was made in Q2 2018, with a wide 23m @ 1.1g/t Au hit including 2 high grade cores; wide open in all directions Plan view – North Contact Cross section through hole 72 (looking west) B A N 23.5m @ 1.12g/t Au f/ 180.5m incl. 2.0m @ 6.86g/t Au and
Slide 37: Geochemistry – MMI soil sampling results – Gold 2018
EAST CADILLAC GOLD PROJECT Geochemistry – MMI soil sampling results – Gold 2018 MMI samples collected by hand-auger with the preference to collect an inorganic (B Zone) sample below surface organic soils (not Anderson possible in wetland areas) • Soils initially collected on a 400m x 400m reconnaiss
Slide 38: Geochemistry – MMI soil sampling results – Arsenic 2018
EAST CADILLAC GOLD PROJECT Geochemistry – MMI soil sampling results – Arsenic 2018 MMI samples collected by hand-auger with the preference to collect an inorganic (B Anderson Zone) sample below surface organic soils (not possible in wetland areas) • Soils initially collected on a 400m x 400m reconna
Slide 39: Geophysics – 3D-IP results – Jan 2019
EAST CADILLAC GOLD PROJECT Geophysics – 3D-IP results – Jan 2019 3D Orevision Induced Polarisation (3D-IP) survey coverage over 24km of the LLCF 8km extension of the survey completed in Oct-17 to Jan-19 • Strong discrete and strike continuous chargeability anomalies have been identified along the La
Slide 40: Historic Chimo Gold Mine
EAST CADILLAC GOLD PROJECT Historic Chimo Gold Mine (Cartier Resources: TSX-V: ECR, 17% owned by Agnico Eagle) Historic Production - 379,012 oz Au @ Down-dip extensions ~4.8g/t Au onto Chalice ground Depth: from surface to >900m Down-plunge extensions onto Surface expression: 1.5km strike within Cha
Slide 41: Major deposits in the Abitibi – Canadian Malartic
EAST CADILLAC GOLD PROJECT Major deposits in the Abitibi – Canadian Malartic Malartic (>16Moz @ ~1.1g/t Au) Mineralisation Footprint Characteristics 3.5km • Depth: from surface to >3,000m 1.5km • Surface expression: >3.5km strike • Width: 1,500m 3km • Thickness: >100-200m • Style: IRGS • Large alter
Slide 42: Major deposits in the Abitibi – Sigma-Lamaque
EAST CADILLAC GOLD PROJECT Major deposits in the Abitibi – Sigma-Lamaque Sigma-Lamaque (>11Moz @ ~7g/t Au) Mineralisation Footprint Characteristics • Depth: from surface to >1,800m • Surface expression: from 300m (Lamaque) to 500m (Sigma) • Width: Up to 300m 2km • Thickness: Various (up to 6m stacke
Slide 43: Major deposits in the Abitibi – Goldex
EAST CADILLAC GOLD PROJECT Major deposits in the Abitibi – Goldex Goldex (>5Moz @ ~1.7g/t Au) Mineralisation Footprint Characteristics • Depth: from surface to >300m (M zone only) • Surface expression: >250m (M zone) • Width: >300m • Thickness: >250m • Style: IRGS Source: Genest, R., 2012 Technical