Chalice Mining Limited · ASX:CHN
Chalice Mining — Chalice Gold Mines — Investor Presentation (April 2010)
24 slides from Chalice Mining's investor presentation, Apr 23, 2010
Slide 1: Poised for Production in East Africa
ASX: CHN For personal use only “Poised for Production in East Africa ” Corporate Presentation April 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 • Dynamic international gold company • Listed on ASX (Ticker: CHN), TSX listing planned 2H 2010 • 80%-owned Zara Project, Eritrea • option to purchase remaining 20%* • Feasibility Study nearing completion on high-grade Koka deposit • JORC Resource 944,000oz @ 5
Slide 4: Corporate
Corporate For personal use only Snapshot • Shares on issue 157.4M 6 month share price • Options on Issue 13.075M • Cash (Mar’10) ~A$10M Board • Tim Goyder (Executive Chairman) • Dr Doug Jones (Managing Director) • Mike Griffiths (Executive Director) • Anthony Kiernan (Non-Executive Director) Substan
Slide 5: Zara Project Location
Zara Project Location For personal use only • 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 Gold Mine (Egypt) – in production (Centamin) •
Slide 6: Zara – Project Location
Zara – Project Location For personal use only Granted permits Applications 6
Slide 7: Gold Deposit
Koka Gold Deposit For personal use only • JORC compliant resource of 5.04Mt @ 5.8 g/t Au for 944,000oz • 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 of resource shallower than 150m de
Slide 8: Gold Deposit – Metallurgy
Koka Gold Deposit – Metallurgy For personal use only • Metallurgical testwork completed at AMMTEC Perth • Laboratory master composite prepared from 104 intervals representative of deposit • Initial testwork indicates ore is metallurgically benign: • ~60% of gold recoverable by gravity • Overall reco
Slide 9: 2009 Scoping Study – Key Parameters
2009 Scoping Study – Key Parameters For personal use only Average gold production ~110,000 oz per annum Life of mine ~ 6 years Total capital costs US$97.8 million Total cash costs US$424 per oz Total gold mined 712,000 oz Gold recoveries 95% Gold produced 677,000 oz Plant capacity 500,000 tpa Mining
Slide 10: Opportunities to Enhance Economics
Opportunities to Enhance Economics For personal use only • Potential to decrease pit wall angle: • Reduce strip ratio • Reduce operating costs Koka • Potential to increase East overall resource: • Koka East – currently drilling • Koka South – commences April/May 2010 • Optimize Scoping Study 10
Slide 11: Gold Deposit – Looking North
Koka Gold Deposit – Looking North For personal use only Mineralised Zone 11
Slide 12: Gold Deposit – Mineralisation
Koka Gold Deposit – Mineralisation For personal use only • Quartz-carbonate-sulphide stockwork veins cutting microgranite • similar in style to mineralisation at Sukari Project, Egypt • Visible gold & high gold values associated with sulphides in quartz- carbonate veins • Sulphides overall <2% – no
Slide 13: Gold Deposit – 3D Model
Koka Gold Deposit – 3D Model For personal use only 13
Slide 14: Gold Deposit – Cross Sections
Koka Gold Deposit – Cross Sections For personal use only Sediments Microgranite & Sediments Mafic Volcanics & Mafic Volcanics Microgranite Mylonite & Felsics Mylonite & Felsics 14
Slide 15: Gold Deposit – In-fill Drilling
Koka Gold Deposit – In-fill Drilling For personal use only • 30 diamond holes (~5,000m) completed, results include: • 6m @ 12.4g/t Au • 5m @ 21.9g/t Au • 10m @ 9.9g/t Au • 4m @ 32.8g/t Au • Results generally consistent with previous drilling: • Geometry of ore zone now confirmed in greater detail •
Slide 16: Development Program
Development Program • Lycopodium to complete For personal use only Feasibility Study by mid-2010: • 5,000m of diamond drilling to upgrade resource completed • Hydrological drilling – initial holes indicate adequate water supply – borefield being drilled • Metallurgical test work complete • Geotech d
Slide 17: Zara Project – Exploration Potential
Zara Project – Exploration Potential For personal use only • Expanded regional exploration programs underway • Major regional structural corridor controls gold occurrences • Granted tenements cover 50km strike on this corridor (~600km²) • Numerous prospects identified from artisanal gold workings •
Slide 18: Exploration – Near-Mine
Koka Exploration – Near-Mine For personal use only • Other targets identified in immediate vicinity include: • Koka South Extension – IP resistivity anomaly • Koka East – artisanal workings on high-grade quartz veins 18
Slide 19: East
Koka East For personal use only • Hangingwall of Koka Main Zone • Artisanal workings and prospecting pits over 500m strike • Koka-style alteration and quartz stockwork mineralisation in microgranite • Outcrops over 50m width with rock chip samples up to 18g/t • Very little sampling to date • First-p
Slide 20: South
Koka South For personal use only • Strong IP resistivity anomaly identified 500m to the south of Koka • Ground follow-up confirmed zone of silica-sericite altered microgranite • Limited drilling confirmed Koka- 1m@2.2 style mineralization – up to 92g/t 1m@92 1m@12.5 over 1m • Potential ‘blind’ syste
Slide 21: Landsat Interpretation
Landsat Interpretation For personal use only • Study covered ~38,000km² • ~60 new targets identified within 615km² CHN tenement block • Both gold (Koka-type) & VHMS (Bisha-type) base metal targets identified • Field work has already validated some of the targets on the ground • Regional structural i
Slide 22: 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 – 13 groups now active in country 22
Slide 23: Summary
Summary For personal use only • Koka Gold Deposit: • Advanced high grade gold deposit • Strong economics • Low technical risk • Feasibility Study due mid-2010 • Aggressive exploration programs underway to expand resource base • Strategic ground position in emerging gold & base metal province • Exper
Slide 24: Poised for Production in East Africa
ASX: CHN For personal use only “Poised for Production in East Africa ” Corporate Presentation April 2010 www.chalicegold.com
Chalice Gold Mines — Investor Presentation (April 2010) on 6ix