Chalice Gold Mines Limited - Cameron Gold Project - Exploration Update

 

Exploration potential of Canadian gold project upgraded following discovery of several new mineralised zones during successful summer exploration program

Symbol:                      ASX: CHN TSX:  CXN

Shares outstanding:               282 million

Fully diluted:                             288 million

 

Highlights:

  • Rock chip samples of up to 16.75g/t gold and trench sampling results of up to 6.65 g/t gold over 2.0m at the have been received. Better results are summarised below and complete results follow:
    • T33 prospect (rock chips) – 16.75, 14.75, 6.15, 3.14, 2.89 and 1.15 g/t gold;
    • T33 prospect (trench sampling) - 6.65 g/t Au over 2.0m (including 11.95 g/t gold over 1.0m and 1.35g/t Au gold over 1.0m),
    • Brooks Lake area (rock chips) – 8.89, 2.52, 1.52, 1.15 & 1.04 g/t gold
    • Pipestone area (rock chips) – 2.19, 1.62 & 1.37 g/t gold
    • T13 prospect (trench sampling) - 1.68 g/t gold over 0.6m
    • Nolan prospect (rock chips and trenching) – 5.59 g/t gold and 5.0 g/t gold over 1.0m
  • Several new areas of coincidental anomalous gold, arsenic, tungsten and antimony pathfinder elements, similar to those found at the Cameron deposit, have been defined from regional multi-element geochemistry sampling
  • The expanded exploration potential of the Cameron Project provides a strong pipeline of exploration opportunities for 2016.

 

PERTH, Western Australia, Dec. 7, 2015 /CNW/ -

Overview
Chalice Gold Mines Limited (ASX: CHN: TSX:CXN – "Chalice" or "the Company") is pleased to report encouraging results from its  2015 exploration program completed at its 100%-owned Cameron Gold Project ("Cameron" or "the Project") in Ontario, Canada.

In conjunction with the release of an updated mineral resource estimate for the Cameron Project in November 2015 (see news release dated November 16, 2015), Chalice has also completed the first modern, systematic exploration program to be undertaken at the Cameron Project.

Exploration activities completed as part of this initiative included a comprehensive surface sampling program that included channel sampling of 10 new targets located in priority areas that had been identified from a previous desktop study, widespread rock chip sampling across the entire property and six reconnaissance MMI soil sampling grids as well as a structural study of key mineralised outcrops. 

The results of this new sampling by Chalice include rock chip samples grading up to 16.75g/t gold and trench sampling results of up to 6.65 g/t gold over 2.0m (Figure 1 and Figure 3, further details are below), identified several new mineralised zones (Figure 2) and improved the Company's understanding of the controls on mineralisation across the property. The recognition of areas of co-incidental pathfinder elements (gold, arsenic, tungsten and antimony) in close proximity to either know mineral occurrences, 2015 trench anomalism or previously unexplored areas is encouraging and will be followed up in 2016.

Chalice's Managing Director, Mr Tim Goyder said "the 2015 exploration program at the Cameron Gold Project had been very successful, demonstrating the under-explored nature of the region and indicating potential to discover new zones of near surface gold mineralisation in close proximity to the known mineral resources. 

This is the first time comprehensive, systematic, modern exploration methodologies have been applied to large areas of this project, and the results have been very pleasing. The program has delivered a range of new, high quality targets outside of the Cameron deposit, significantly upgrading the prospectivity of the broader project area," Mr Goyder said.

"These results give us a pipeline of exploration opportunities to further evaluate in 2016 and, if successful, may grow our mineral resources which could potentially enhance the future economics of the project."

Rock chip and trench sampling is preliminary in nature and not conclusive evidence of the likelihood of the occurrence of a mineral deposit.

1.     Reconnaissance Rock Chip Sampling and Trenching 

Reconnaissance rock chip sampling was completed on 10 prioritised areas defined during a previous targeting exercise. As further follow-up to anomalous rock chip samples, 10 targets were selected for stripping and 14 trenches were cleared with 579 channel samples obtained. Three of the 10 trenching areas returned anomalous results, which are summarised below. These anomalous results were received from new mineralised zones identified in three target areas. The first pass results from these three areas are very encouraging and warrant additional follow-up.

T33 Prospect

The results from rock chip sampling and trenching at the T33 prospect have defined a new zone of mineralisation in the general area of the historic Kiryliw showing. The mineralisation occurs along a 500m trend on the west side of Sullivan Bay. The highest value recorded from rock chips included 16.75 g/t gold (Figure 3; Table 1 for additional results) and is adjacent to the stripping and trenching undertaken. Significant results from stripping and trenching the T33 prospect included 6.65 g/t gold over 2.0m (including 11.95 g/t gold over 1.0m and 1.35 g/t gold over 1.0m) (Figure 3).

Table 1: Results of rock chip sampling at and in the vicinity of the T33 prospect (UTM Nad 83 Zone 15)

Sample No

UTM_E

UTM_N

g/t Au

R978298

453202.5

5460111

16.75

R978286

453344.3

5460230

14.75

R978277

453553

5460477

3.14

R978283

453298.4

5460083

1.15

R978287

453339.7

5460228

6.15

R978297

453202.5

5460110

2.89

Nolan Prospect

A single 5. 58g/t gold sample from the Nolan prospect defines a new mineralised zone along the contact between the west margin of the late tectonic syenite-phase of the Nolan stock and adjacent mafic volcanic flows.  Results from stripping and trenching at the Nolan prospect included 5 g/t gold over 1.0m.

Table 2: Results of rock chip sampling at Nolan prospect (UTM Nad 83 Zone 15)

Sample No

UTM_E

UTM_N

g/t Au

1384395

452657

5457852

5.59

T13

Channel sampling at trench T13 returned an anomalous value of 1.68g/t gold over 0.6 metres.

Table 3: Results of rock chip sampling at T13 prospect (UTM Nad 83 Zone 15)

Sample No

UTM_E

UTM_N

g/t Au

R978704

444135

5462608

1.68

2.     Regional Multi-element Geochemical Sampling

1,893 rock chip samples were collected on an approximately 400m x 400m grid (Figure 2). Several zones of anomalous pathfinder elements (arsenic, tungsten and antimony) with similar geochemical signatures to those seen at the Cameron deposit have been identified. 

The multi-element geochemical studies have identified trends of pathfinder elements both similar to the Cameron deposit as well as commonly seen around shear-hosted gold deposits elsewhere in Canada. These trends will be field checked in 2016 before appropriate follow-up exploration programs are designed.

Brooks Lake Area

Samples from the Brooks Lake area in the south eastern part of Cameron are from multiple exposures of a south-west striking zone that were sampled along a strike length of approximately 100m along the south shore of Brooks (Table 4); all other assays were less than 1.0 g/t Au.  The sample trend may represent a strike extension to the historic Aremis showing, located approximately 120m to the north-east. The mineralisation occurs along a north-east trending structure similar to the Monte Cristo fault in the Cameron Lake area.  The area is among the more remote on the property and therefore comparatively little exploration has been completed to date in this area.

Table 4: Highlights of results of rock chip sampling at Brooks Lake prospect (UTM Nad 83 Zone 15)

Sample No

UTM_E

UTM_N

g/t Au

293735

459367

5451380

8.89

293732

459365

5451385

2.52

293739

459325

5451376

1.52

293738

459318

5451377

1.15

293849

459413

5451393

1.04

 

Pipestone Area

Samples from the Pipestone area in the south eastern part of Cameron, including 2.19g/t gold in sample number 1384276 (Table 5), define a new mineralised zone along a major northwest-trending mafic-intermediate volcanic contact along the Pipestone fault with no historical mineralisation having been documented from this area.  Other samples from the area also contained anomalous gold but returned assays of less than 1.0 g/t Au.

Table 5: Highlights of results of rock chip sampling at Pipestone prospect (UTM Nad 83 Zone 15)

Sample No

UTM_E

UTM_N

g/t Au

1384276

458447

5445931

2.19

293683

458448

5445928

1.62

293685

458449

5445928

1.37

 

Sampling Techniques – Rock Chips
Samples were collected by external parties, Fladgate Exploration Consulting Corporation and Haveman Brothers Forestry Services Ltd, under the supervision of the Qualified Person.

Samples were collected of both lithological units and areas of alteration and veining. The samples were submitted to accredited laboratory ALS Global Laboratories for multi-element analysis by 4-acid digest ICP analysis using their ME-MS61 routine.

Traverses were designed using available satellite imagery and topographic maps to optimize daily travel. Sample sites were selected based on proximity to an ideal 400 x 400m sampling grid and collected within approximately 100m of the site depending on conditions at each site. 

Approximately 0.5 kg of rock was collected at each site and bagged in a standard plastic sample bag with a unique sample tag. Mapping stations in the GPS were named using the same sample tag number and photos were collected of each sample with the tag number written on a scale card.  Navigation and locations were completed using GPS and downloaded at the end of each day and updated with field description data. One blank, reference standard or crushed duplicate was inserted every 20 samples.

Sampling techniques – Trenching
Samples were collected by employees and direct contractors of the Company under the supervision of the Qualified Person.

Samples were cut with gas-powered chop saw using diamond blades with a sample width approximately 2 cm and a depth of approximately 5cm. Samples were then chiselled out of cuts with steel chisel/hammer and put into plastic sample bags. Samples were shipped via secure shipment tagged bags and chain of custody documentation directly from Cameron site to accredited ALS Laboratories in Thunder Bay.  If the exposed rocks were not strongly altered or mineralised, rock-chip samples were taken instead of channel samples to add to the pathfinder/geochemical database. 

Stripped areas were mapped by hand. GPS locations and all channel and rock chip sample sites measured and located on multiple map sheets using a local metric grid coordinate system. UTM coordinate sites were surveyed in with an averaging routine on a field GPS (accuracy plus or minus 2.5m on average). 

Map sheets were scanned and merged in local grid and then georeferenced in Mapinfo using the GPS coordinates.

One blank, reference standard or crushed duplicate was inserted every 20 samples.  The samples were submitted to accredited ALS Laboratories for gold and multi-element analysis by 30g FA/AA finish gold analysis (Au-AA23) or 4-acid digest ICP analysis (ME-MS61).

3.     Alteration Study

Spectral data from 4,294 samples were collected using a Halo scanner on all reconnaissance rock samples as well as along all trenches and from most of the 2010-2012 drill holes on the Cameron deposit. Anomalous white mica and Al-chlorite results are being combined with rock geochemistry to prioritise targets for follow-up in 2016.

4.     Structural Study

A new structural mapping program was also completed during the summer on select key deposits and locations within the property.  The results, combined with the outcome of the summer's re-logging and in-fill sampling program on the Cameron deposit, have significantly improved the Company's understanding of the mineralisation controls on the property. 

5.     JORC 2012

Further details on sampling techniques, reporting of exploration results and estimation can be found within the JORC 2012 tables by clicking here.

(signed)
TIM GOYDER
Managing Director

Qualifying Person Statements

Cameron Gold Project – Exploration
The information in this report that relates to Exploration Results in relation to the Cameron Gold Project is based on information compiled by Mr J.W. Patrick Lengyel, who is a Member of the Association of Professional Geoscientists of Ontario.  Mr Lengyel is a full time employee of the Company and a non-independent "Qualified Person" as defined in National Instrument 43-101 – 'Standards of Disclosure for Mineral Projects'. The Qualified Person has verified and approved the data disclosed in this release, including sampling, analytical and test data underlying the information contained in this release.  Mr Lengyel consents to the release of information in the form and context in which it appears here.

Forward Looking Statements
This document may contain forward-looking information within the meaning of Canadian securities legislation and forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, forward-looking statements).  These forward-looking statements are made as of the date of this document and Chalice Gold Mines Limited (the Company) does not intend, and does not assume any obligation, to update these forward-looking statements.

Forward-looking statements relate to future events or future performance and reflect Company management's expectations or beliefs regarding future events and include, but are not limited to, the estimation of mineral reserve and mineral resources, the realisation of mineral reserve estimates, the likelihood of exploration success, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage.

In certain cases, forward-looking statements can be identified by the use of words such as plans, expects or does not expect, is expected, will, may would, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate, or believes, or variations of such words and phrases or statements that certain actions, events or results may, could, would, might or will be taken, occur or be achieved or the negative of these terms or comparable terminology.  By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.  Such factors may include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in mineral resources or ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at sedar.com.  Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended.  There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward-looking statements.

SOURCE Chalice Gold Mines Limited

Image with caption: "Figure 1: Map showing location of significant rock chip and trenching samples (CNW Group/Chalice Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20151207_C6832_PHOTO_EN_559096.jpg

Image with caption: "Figure 2: Areas of anomalous gold, arsenic, tungsten and antimony (CNW Group/Chalice Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20151207_C6832_PHOTO_EN_559098.jpg

Image with caption: "Figure 3: Map of the T33 trench showing significant channel sampling and rock chip assays (UTM Nad 83 Zone 15) (CNW Group/Chalice Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20151207_C6832_PHOTO_EN_559100.jpg

PDF available at: http://stream1.newswire.ca/media/2015/12/07/20151207_C6832_PDF_EN_559102.pdf

For further information: please contact: Gary Snow, COO, Tim Goyder, Managing Director, Chalice Gold Mines Limited, Telephone +61 9322 3960; For media inquiries, please contact: Nicholas Read, Read Corporate, Telephone: +618 9388 1474


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890