2,200m resource definition diamond drilling program to begin in June at Croteau Est gold property in Quebec
PERTH, Western Australia, May 25, 2015 /CNW/ - Chalice Gold Mines ("The Company") ASX:CHNTSX:CXN is pleased to advise that its first diamond drilling program is scheduled to commence by mid-June 2015 at the Croteau Est gold property in Quebec, Canada following its recently announced joint venture deal.
The Croteau Est Project (Chalice earning 65%) includes a coherent, well defined zone of plus 1 g/t Au mineralisation at the Croteau Bouchard Shear Zone ("CBSZ") as well as several extensive, highly prospective geological trends with outstanding gold geochemical anomalies. The program will initially comprise a 12-hole, ~2,200m diamond drilling program to in-fill gaps within the currently defined (CBSZ) structural corridor (Figure 1) where a total of 44 diamond drill-holes have been previously completed.
This is expected to pave the way for a maiden 43-101/JORC standard resource estimate for the CBSZ, with all data to be submitted to an independent resource consultant for construction of a wireframe model.
In addition to the in-fill drilling program, a further 48 shallow Reverse Circulation (RC) holes will be completed in the vicinity of the CBSZ (Figure 2). Results from this RC drilling program should provide further information on the potential for mineralisation within the Croteau Fault and its inferred association with the CBSZ, and to provide targets for future diamond drilling.
Eight RC drill holes will also test a prominent magnetic target, located on the north-eastern part of the property (Figure 3).
About the Croteau Est Project
The Croteau Est Project is located near Chibougamau in Québec and comprises 213 claims covering 8,316 hectares which are 100%-owned by Northern Superior Resources Inc. (TSX-V: SUP) and 109 claims totaling 3,856 hectares which are under option to Northern Superior.
Under the Croteau Est agreement with Northern Superior, Chalice can earn a 65% interest in the property by spending a total of C$4 million on exploration over three years, with a minimum exploration commitment of C$500,000 in the first 12 months. Upon earning a 65% interest, the joint venture becomes a contributing joint venture which is subject to a standard dilution calculation.
The property is located close to a number of historical copper-gold mines in the Chapais-Chibougamou region. The project is well serviced by road, rail and air services, offering year-round access, and is located close to grid power.
The tenement package includes a 25km strike length of prospective stratigraphy, including 17 drill ready targets requiring immediate follow-up and a significant body of quartz-carbonate-sericite alteration and pyrite mineralisation which has been defined as the CBSZ. A total of 44 diamond drill-holes have been completed into the CBSZ.
Previous drilling has returned some outstanding intersections including 10.55m @ 10.63g/t Au from 179.95m (CRO11-05), 19.55m @ 8.55g/t Au from 90.75m (CRO12-10), 6.85m @ 21.32g/t Au from 240.65m (CRO12-46) (true widths of the drill hole intersections cannot be determined with the information currently available). A full listing of drill statistics for the CBSZ is provided in Appendix 1.
Competent and Qualified Persons Statement
The information in this report that relates to Exploration Results in relation to the Croteau Est Project is based on information compiled by Mr Gary Snow, who is a Fellow of the Australasian Institute of Mining and Metallurgy and is a Fellow of the Australian Institute of Geoscientists. Mr Snow is a full-time employee of the company and has sufficient experience in the field of activity being reported to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves, and is a Qualified Person under National Instrument 43-101 – 'Standards of Disclosure for Mineral Projects'. The Qualified Person has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in this release. Mr Snow consents to the release of information in the form and context in which it appears here.
The information relating to the Croteau Est Project is extracted from the ASX Announcement entitled "Chalice expands North American presence with farm-in deal on advanced and highly prospective Canadian gold project" released on 22 April 2015 and is available to view at www.chalicegold.com. The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not materially modified from the original market announcement.
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, except as required by law or regulation.
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, statements regarding the quantum and price of shares to be acquired under a share buyback, the estimation of mineral reserves 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, 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 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 ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry, 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
Image with caption: "Figure 1: Location of planned drill collars (red collars) within the Croteau Bouchard Shear Zone (CBSZ) (CNW Group/Chalice Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20150525_C4808_PHOTO_EN_16938.jpg
Image with caption: "Figure 2: Location of planned reverse circulation drill collars (yellow collars) (CNW Group/Chalice Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20150525_C4808_PHOTO_EN_16939.jpg
Image with caption: "Figure 3: Location of planned reverse circulation drill holes to test a prominent magnetic target, located on the northeastern part of the property (CNW Group/Chalice Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20150525_C4808_PHOTO_EN_16940.jpg
Image with caption: "Figure 4: Croteau Est Location, Québec (CNW Group/Chalice Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20150525_C4808_PHOTO_EN_16941.jpg
For further information: please contact: 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