Chalice Gold Mines Limited - June 2017 Quarterly Activity & Cash flow Reports

Symbol:                    ASX: CHN TSX:  CXN

Shares outstanding:              261 million

Fully diluted:                           275 million

PERTH, Western Australia, July 31, 2017 /CNW/ - Chalice Gold Mines Limited (ASX: CHN, TSX: CXN) ("Chalice" or the "Company") advises that its Quarterly Activity and Cash Flow Reports for the quarter ended June 30, 2017 have been issued today.  The full text of these reports are available at the Company's website www.chalicegold.com and under the Company's profile at www.sedar.com.

Quarterly Highlights:

  • A$7.5m exploration initiative, including >22,000m drilling, commenced across five high-potential gold and base metals projects in Canada and Australia:
    • East Cadillac Gold Project, located 35km east of Val-d'Or and covering a 16km strike of the eastern part of the Larder Lake-Cadillac Fault, a district that has a gold endowment of +100Moz.
    • Kinebik Gold Project which covers a 30km strike of the Casa Berardi Fault, a structure that hosts multiple gold deposits.
    • 9,500m of diamond drilling planned in H2 2017 on the Canadian gold projects to test multiple targets, including extensions of the existing high-grade mineral resource and along the prospective Larder Lake-Cadillac Fault corridor, plus follow-up geochemical anomalies at Kinebik.
    • Warrego North Iron Oxide Copper-Gold ("IOCG") Project, Northern Territory – drilling planned in H2 2017 to expand the recent Parakeet copper-gold discovery.
    • Latitude Hill Nickel Project, Western Australia – 9,000m drill program in H2 2017 to test multiple Spectrem EM conductors with Voisey's Bay and Nova-Bollinger style nickel-copper discovery potential.
    • West Pilbara Gold and Base Metals Project, Western Australia – 4,000m aircore and RC drill program at three gold and copper targets in H2 2017.
  • Tennant Creek-style IOCG mineralization confirmed at the Parakeet prospect, with maiden drill hole WND17-001 returning an intercept of 8m at 1.74% Cu and 0.42g/t Au from 249m down-hole. Follow-up drilling planned for the September Quarter.
  • Chalice subscribed to a share placement of 40m shares in Ausgold Limited (ASX: AUC) at an issue price of 2.5c for a total of A$1.0m.
  • Chalice is well positioned to expand exploration activities based on success, with cash and liquid investments of A$52.4m at Quarter-end.

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 at the East Cadillac Gold Project, the realisation of mineral reserve estimates; the likelihood of exploration success including results of future geophysical surveys, drilling at the East Cadillac Gold Project, the Latitude Hill Project, the Warrego North Project and the West Pilbara Project and other exploration activities; the timing  and costs of future exploration activities on the Company's exploration projects; the potential to define future mineral resources and, if successful at any of the Company's exploration projects, the potential viability of any mineral resource so defined; planned expenditures and budgets and the execution thereof; the timing and availability of drill results; potential sites for additional drilling, the future share price performance of First Mining Finance Corp and Ausgold Limited, the approval of Ausgold Limited shareholders to issue the consideration shares and options to Chalice, that general business and economic conditions will not change in a materially adverse manner; 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, planning, expects or does not expect, is expected, will, may, would, potential, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate, or believes, occur, or be achieved, 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 exploration programs based upon results of exploration; 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, 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

For further information: Tim Goyder, Managing Director, Richard Hacker, CFO, Chalice Gold Mines Limited, Telephone +618 9322 3960


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