Chalice Mining Limited · ASX:CHN
Chalice Mining — Chalice Gold Mines — Investor Presentation (March 2020)
32 slides from Chalice Mining's investor presentation, Mar 31, 2020
Slide 1: Corporate Presentation
Corporate Presentation 31 March 2020 ASX: CHN | OTCQB: CGMLF
Slide 2: Forward looking statements and disclosures
Forward looking statements and disclosures This presentation does not include all available Information on Chalice Gold Mines Limited and should not be used in isolation as a guide to investing in the Company. Any potential investor should also refer to Chalice Gold Mines Limited Annual Reports, fil
Slide 3: A unique, well-funded exploration specialist
A unique, well- Chalice has proven ability to: funded exploration • Make opportunistic acquisitions specialist 1 • Explore for mines and add value • Divest assets in a disciplined manner Which has created significant value to date… • ~A$107M1 generated from asset sales 2 • ~A$36M returned to shareho
Slide 4: Chalice's portfolio includes key district-scale gold and nickel projects in Australia
Chalice’s portfolio includes key district-scale gold and nickel projects in premier terranes of Australia Julimar Nickel-Copper-PGE Project, WA • New greenfield nickel-copper-PGE sulphide discovery 1 • 19m @ 2.59% Ni, 1.04% Cu, 8.37g/t Pd in first drill hole • 100% owned, large unexplored intrusive
Slide 5: We have a tight capital structure and a strong financial position
Capital Structure and Financials We have a tight capital structure Equity listings and a strong financial position ASX: CHN Shares Out. 274.1M Market capitalisation2 Shares (F/D) 296.9M ~A$140M (@ A$0.52ps) OTCQB: CGMLF Working Capital & Debt Cash2 Investments2 Top Shareholders1 nil ~A$9M ~A$27M Tim
Slide 6: We are a dynamic group of accomplished mine finders and sound commercial managers
We are a dynamic group of accomplished mine finders and sound commercial managers We have people who know People who know how to finance and how to find mines… commercialise them Dr Kevin Frost Tim Goyder GM – Exploration, BSc (Hons) PhD MAIG Executive Chairman • Co-recipient of AMEC’s Prospector of
Slide 7: Julimar Nickel-Copper-PGE Project, Western Australia
Drilling discovery hole JRC001 at Julimar Ni-Cu-PGE Project, Mar-2020 Julimar Nickel- Copper-PGE Project Western Australia 7
Slide 8: High-grade nickel-copper-palladium sulphide intersected in the first drill hole at Julimar
High-grade nickel-copper-palladium sulphide intersected in the first drill hole at Julimar, an unexplored intrusive complex ~70km NE of Perth • ~70km NE of Perth, with direct access to major highway, rail, power and port infrastructure • ~26km x 7km layered ultramafic-mafic intrusive complex was sta
Slide 9: The first hole targeted a strong, discrete MLEM conductor and intersected 19m @ 2.6% Ni
The first hole targeted a strong, discrete MLEM conductor and intersected 19m @ 2.6% Ni, 1.0% Cu, 8.4g/t Pd and 1.1g/t Pt from 48m • 2 RC hole completed to date – no historical drilling • 4 high-priority MLEM conductors identified • JRC001 intersected a wide Ni-Cu-PGE rich massive sulphide zone from
Slide 10: The shallow Ni-Cu-Pd rich massive sulphide zone remains open in all directions
The shallow Ni-Cu-Pd rich massive sulphide zone remains open in all directions 13m @ 3.15% Ni, 1.19% Cu, 8.85g/t Pd, 1.09g/t Pt f/ 48m 10
Slide 11: Pyramid Hill Gold Project, Victoria
Drilling at Pyramid Hill Gold Project, Oct-2019 Pyramid Hill Gold Project Victoria 11
Slide 12: Why the Bendigo gold district of Victoria? The prospect of finding another Fosterville
Why the Bendigo gold district of Victoria? The prospect of finding another Fosterville Gold Mine Northern Bendigo Zone (32Moz undiscovered gold endowment) N >60Moz Au produced since 1850’s from outcropping 50km South Bendigo Zone, at a avg grade of ~15g/t Au 90% of mines had a recovered grade >8.5g/
Slide 13: Chalice has staked a >5,000km2 essentially unexplored land holding
Chalice has staked a >5,000km2 essentially unexplored land holding surrounding two world-class gold deposits 143.5° 144.5° Interpreted Faults Murray River Basement outcrop limit Chalice is in good company in the district, with Pyramid Hill Gold Project Bendigo Zone the entire Northern Bendigo Zone e
Slide 14: Major gold deposits are controlled by regional scale faults continuing into Chalice's tenure
The major gold deposits are controlled by regional scale faults, which continue to the north into Chalice’s tenure follow the strike NSW VIC Northern Four Eagles Bendigo Zone Tandarra Extension of these regional scale faults Fosterville ~9Moz Karri under cover evident Melbourne in regional gravity
Slide 15: Dispersion of gold and pathfinder metals is used to vector towards gold under cover
Dispersion of gold and pathfinder metals such as arsenic and antimony is used to vector towards gold under cover Outcropping dispersion footprints Under cover Arsenic (we are close) ~9 Drill Line 1 Antimony (getting warmer) Line 2 Gold! Line 3 A Gold System!! Identifying continuous dispersion over k
Slide 16: Chalice has adopted a systematic value-add approach – 'find the big gold systems first'
Chalice has adopted a systematic value-add approach – ‘find the big gold systems first’ • Our Project covers hundreds of kilometres of 143.5° 144.5° Interpreted Faults Murray River prospective strike: Basement outcrop limit Bendigo Pyramid Hill Gold Project Zone • Muckleford (>300km) Gold occurrence
Slide 17: Pyramid Hill Gold Project Key results to date
Drilling at Pyramid Hill Gold Project, Feb-2020 Pyramid Hill Gold Project Key results to date 17
Slide 18: Karri Target: a new >4km gold trend defined with shallow AC drilling
1. KARRI TARGET A new >4km gold trend has been defined with shallow AC drilling at the Karri Target; exciting results to date point to a large-scale gold system at depth • ~240 vertical AC holes completed to date – no historical drilling near target • 50-85m of Murray Basin cover • Continuous gold t
Slide 19: The extensive gold trend within weathered basement has high-grade zones
1. KARRI TARGET The extensive gold trend within weathered basement has high-grade zones and remains continuous between 250-500m spaced drill lines SECTION 19
Slide 20: The gold footprint at Karri indicates potential for a sizeable gold system beneath
1. KARRI TARGET The gold footprint at Karri indicates the potential for a sizeable gold system beneath the size of the prize is significant OPEN N ~9Moz Fosterville Karri Target OPEN OPEN Gold Mine Plan View Plan View Scale Comparison Swan Zone1 ~2.3Moz @ ~50g/t Au >1.0g/t gold trend >3g/t Au Reso
Slide 21: Two distinct, large diorite intrusions identified at the Ironbark Target
2. IRONBARK TARGET Two distinct, large diorite intrusions identified at the Ironbark Target; up to 3g/t gold intersected in the first AC drill holes • ~100 vertical AC holes completed to date – no historical drilling • 50-80m of Murray Basin cover • New 4m composite drill intercepts at Ironbark Nort
Slide 22: High-grade gold in diorite is common in Eastern Victoria; Ironbark is the first in the Bendigo Zone
2. IRONBARK TARGET High-grade gold in diorite is common in Eastern Victoria, however Chalice’s discovery of gold in the Ironbark diorites is the first in the Bendigo Zone • Gold in the diorites and on the margins • Several high-grade diorite-associated gold deposits in Eastern Victoria, including: •
Slide 23: The Pyramid Hill Gold Project has strong commercial drivers for exploration
Highly prospective but essentially unexplored The Pyramid Hill Gold Project +++ a new opportunity with huge upside and no legacy brownfield issues has strong commercial drivers for exploration +++ High-grade district + operating mines nearby strong commercial drivers for exploration +++ >5,000km
Slide 24: So why invest in Chalice?
So why invest in Chalice? RC rig drilling at new Ni-Cu-Pd sulphide discovery in 1 WA + 2 diamond rigs drilling in Vic – all targets have significant scale potential ~A$27M in working capital and investments 2 (~A$0.10ps)1 – we are well funded >A$100M generated from asset sales, ~A$36M returned 3 to
Slide 25: Thank You
Thank You Level 2, 1292 Hay Street, West Perth WA 6005, Australia +61 8 9322 3960 [email protected] www.chalicegold.com linkedin.com/company/chalice-gold-mines twitter.com/chalicegold ASX : CHN | OTCQB: CGMLF
Slide 26: Our strategy is to systematically acquire and explore in premier terranes
STRATEGY Our strategy is to systematically acquire and explore in premier terranes; aiming to address the rapid decline in tier-1 scale discoveries worldwide Exploration Expenditures and Primary Gold discovered globally Tier-1 scale discoveries (>US$1bn NPV) now represent only ~2% of all discoveries
Slide 27: Since our 2006 IPO, we have acquired well, advanced projects quickly and generated >A$100M
COMPANY HISTORY Since our 2006 IPO, we have acquired well, advanced projects quickly and generated >A$100M in after-tax proceeds1 from asset sales 2012 Zara Gold Project in 2006 Eritrea sold for 2016 $7.5M raised in IPO ~US$114M (pre-tax) Cameron 2018 on ASX to progress 2009 Gold Project in A$0.10ps
Slide 28: Chalice's portfolio includes gold and nickel projects, royalties, investments and non-operated JVs
PORTFOLIO Chalice’s portfolio includes key district-scale gold and nickel projects as well as several royalties, investments and non-operated JVs Australia King Leopold Warrego North Copper-Gold Project Nickel Project (70-100%) (85-100%) Flinders River Royalties Vanadium Project NT • Nyanzaga, Tanza
Slide 29: Gold Road Resources started with greenfield exploration and is now a >A$1Bn company
CASE STUDY Gold Road Resources (ASX: GOR) started with greenfield exploration in an underexplored belt and are now a >A$1Bn company Gold Road (ASX: GOR) Share Price (A$) 1.80 • The Gruyere discovery was located HIGH 1.625 1.60 Mining in a similar underexplored yet Feasibility Commenced proven minera
Slide 30: King Leopold Nickel Project, Western Australia
King Leopold field reconnaissance, Jun-2019 King Leopold Nickel Project Western Australia 30
Slide 31: The King Leopold Nickel Project covers 1,800km2 in the frontier King Leopold Orogen
The King Leopold Nickel Project covers 1,800km2 in the frontier and largely unexplored King Leopold Orogen of the west Kimberley 600,000mE 700,000mE 800,000mE • Frontier province highly prospective for 50km magmatic Ni-Cu-Co sulphide deposits 8,200,000mN N • Minimal modern exploration • 2015 Merlin
Slide 32: Chalice's immediate focus is the Ruins Area, where several nickel sulphide targets are defined
Chalice’s immediate focus is the Ruins Area, where several nickel sulphide targets have already been defined • Merlin (IGO-Buxton) hosts drill intercepts in Ruins Dolerite with grades up to 8.14% Ni, 5.26% Cu and 0.69% Co Merlin (IGO-Buxton) Several high- • 11 airborne EM targets defined by grade Ni
Chalice Gold Mines — Investor Presentation (March 2020) on 6ix