- First diamond drill-hole to test the Parakeet geophysical target intersects Tennant Creek-style mineralisation comprising magnetite-dominant ironstone with visible chalcopyrite and pyrite.
- Strongest chalcopyrite mineralisation intersected between 249m – 258m down-hole (visual inspection), with the hole still in progress to test the main geophysical target at approximately 350m down-hole.
- Parakeet comprises a strong circular (1km x 1km) coincidental magnetic and gravity anomaly located ~20km north-west of the historical Warrego Copper-Gold mine (historical production 1.3Moz gold and 90,000t copper).
- Drill core prioritized for cutting and sampling with assays expected in about three weeks.
- Phase 1 diamond drilling (comprising two ~400m deep holes) is continuing.
PERTH, Western Australia, May 23, 2017 /CNW/ - Chalice Gold Mines Limited ("Chalice" or the "Company") (ASX: CHN) (TSX: CXN) is pleased to announce that it has intersected potentially significant Tennant Creek-style mineralisation in its maiden drill hole at the Warrego North Project in the Northern Territory. Chalice can earn up to a 70% interest in the Project from Meteoric Resources NL (ASX: MEI) by sole funding $800,000 in expenditure (See press release dated June 15, 2016).
The Warrego North Project is located ~20km north-west of the historical high-grade Warrego copper-gold mine in the western part of the Tennant Creek Mineral Field (Figure 1). Warrego was the largest deposit mined at Tennant Creek with historical production of 1.3Moz of gold and 90,000t of copper from 5Mt of ore at 8g/t Au and 2% Cu.
The Company's first diamond drill hole, WND17-001, targeted a coincident magnetic-gravity anomaly (see Figure 2) and has intersected interstitial and vein-style chalcopyrite mineralisation in magnetite ironstone between 249-258m down-hole depth (see Figures 3 and 4).
The drill hole has also intersected multiple narrow ironstone units within strongly chlorite-altered Warramunga Formation siltstone from 258m to the current down-hole depth of approximately 292m, which demonstrates that the alteration system is continuing with depth. The drill core will be prioritised for cutting and sampling and assay results are expected to be received within about three weeks.
Chalice's General Manager – Exploration, Dr Kevin Frost, said: "This is a great result for our very first drill-hole at Warrego North, which validates our belief that this is an exciting iron-oxide-copper-gold target in the Tennant Creek Mineral Field. The coincident aeromagnetic and gravity anomaly provides a compelling exploration target and we look forward to receiving the first batch of assay results and to further evaluating this target with the rest of our Phase 1 diamond drilling program."
Diamond drill hole WND17-001 will continue to the planned depth of approximately 400m. The drill rig will then move to the site of WND17-002 to begin diamond coring.
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Competent Persons and Qualifying Persons Statement
The information in this report that relates to Exploration Results in relation to the Warrego North Project is based on information compiled by Dr Kevin Frost BSc (Hons), PhD, who is a Member of the Australian Institute of Geoscientists. Dr Frost 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. Dr Frost 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; visual inspection of core may not be reflective of actual assay results; intersections may not be economically significant; 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, 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, Chalice Gold Mines Limited, Telephone +618 9322 3960