Quarterly update from Chalice continues to impress - summary of announcement below.
Key note for me is that they still have $100M in the bank so shareholders won't be asked to participate in another CR.
Drill results show they haven't found the edge of the Julimar deposit yet, plus Pyramid Hill returned grades of up to 32g/tonne! (an outlier for sure ;-) ) Seems to be shallow too, so if it was developed, it would be cheap to get at, although how much production there wuld be I'm still unable to tell.
Good news for the potential gold assets spin-off. I just hope existing hlders don't get dudded.
Julimar Nickel-Copper-PGE Project, Western Australia (100%-owned)
« ~125,000m of drilling completed to date at the ~1.8km x 0.9km Gonneville Intrusion.
« Step-out drilling has further extended the high-grade G1-5 and G8-10 zones along strike; all highgrade zones remain open.
« Infill drilling across multiple high-grade zones continues to support the geological model and
continuity of the mineralised zones.
« Maiden Mineral Resource Estimate for Gonneville anticipated in Q4 2021, with drill spacing
targeted at maximising resources in the indicated category.
« Ground gravity data indicates the presence of a largely continuous gravity high extending along
the >26km long Julimar Complex, largely coincident with the magnetic high.
« Several extensive Ni-Cu+/-Pd soil anomalies identified associated with gravity highs and, in some
cases, coincident with airborne EM anomalies at the Baudin, Jansz and new Drummond targets.
« State Forest access being progressed, with initial drilling at Hartog targeted to commence in late
Q3 2021, subject to approvals.
« Additional private property acquired surrounding Gonneville, taking the total Chalice-owned
freehold land to ~21km2.
Proposed Gold Demerger and IPO
« Latest round of drilling at the Pyramid Hill Gold Project in Victoria has delivered exciting results,
confirming the belt-scale potential of the project in the prolific Bendigo Zone.
« Chalice intends to pursue a demerger and IPO of Pyramid Hill and its other gold projects in Q4
2021, subject to finalising the transaction structure and obtaining all necessary shareholder and
« Strategy and work program developed for FY22 – Gonneville studies to be advanced as quickly
as possible, in parallel with initial exploration along the Julimar Complex and across the new West
Yilgarn Ni-Cu-PGE Province.
« Chalice remains in a strong financial position with ~$100 million in cash as of 30 June 2021.
Announcement of de-meger of gold assets from Chalice -
I haven't fully read and taken this in yet, however, spinning off the gold assets in to a stand alone company could be positive for the Julimar 'green metals' deposits etc - no longer will they be subject the vagueries of the gold price and they may find their own value - hopefully in an upwards direction!. I wonder what that means for holders - how many shares in the new venture would we be likely to get?
Extract from the announcement below.
Overview Chalice Mining Limited (“Chalice” or “the Company”, ASX: CHN | OTCQB: CGMLF) is pleased to announce that it intends to pursue a demerger of its Australian gold assets, subject to shareholder and regulatory approvals. The decision follows a strategic review of Chalice’s portfolio which concluded that a demerger of the Company’s gold projects (including the district-scale, 100%-owned Pyramid Hill Gold Project in Victoria) is the optimal structure to maximise value for our shareholders. A demerger would also allow Chalice to focus on its world-class Julimar Ni-Cu-PGE Project and the new West Yilgarn Ni-Cu-PGE Province in Western Australia. A demerger would aim to deliver Chalice shareholders a standalone, listed, Australian gold-focused exploration company with a strong balance sheet to target tier-1 gold discoveries in Victoria and WA. The demerged entity would hold the largest land position (>5,000km2) in the Bendigo Zone of Victoria, which hosts Kirkland Lake Gold’s (NYSE / TSX: KL | ASX: KLA) world-class Fosterville Gold Mine (~9Moz Au endowment) and the historic Bendigo Goldfield (>22Moz Au endowment). The entity’s portfolio would be further enhanced by Chalice’s other high-potential gold projects, including the highly prospective Viking Project in WA (where Chalice is earning up to a 70% JV interest). Key advisors have been engaged to commence preparations on the proposed demerger. The potential transaction structure will be finalised subject to receiving legal, financial and taxation advice, and communication with regulatory authorities. The potential transaction is subject to obtaining all necessary shareholder and regulatory approvals. The Company will provide further details in the coming months as these matters are progressed. Chalice is also pleased to report significant results from the latest exploration program at its Pyramid Hill Gold Project, where it has continued systematic exploration drilling activities throughout the 2020- 2021 field season. A total of 21 diamond holes for 7,300m and 1,120 AC holes for 117,000m have been completed across this exciting greenfield project since its initial staking in late 2017. A second phase of diamond drilling was completed during the recent field season at the Karri Prospect (11 holes for 3,840m), which intersected several high-grade gold zones in highly prospective, tightly folded, Castlemaine Group stratigraphy, under 50-70m of Murray Basin cover. A second phase of AC drilling was also completed at the Ironbark Prospect and an initial phase of reconnaissance AC drilling was completed on new target areas at the southern end of the Muckleford area (NW of Bendigo/Fosterville) and at the western end of the Mt William area (NE of Fosterville). Several highly encouraging shallow primary gold zones were intersected at Ironbark and several new prospects have been defined in the Muckleford area. ASX:CHN OTCQB:CGMLF Chalice Mining Limited 3 Chalice’s Managing Director, Alex Dorsch, said: “The proposed demerger provides an exciting opportunity for our shareholders to benefit from the creation of a standalone, well-funded Australian gold exploration company with a high-quality asset base in Victoria and WA. “The board has made this decision after conducting a detailed review of our portfolio in light of the enormous success we have enjoyed over the past 18 months at our flagship Julimar Nickel-CopperPGE Project in WA. The Julimar discovery has transformed the Company and unlocked a new worldclass mineral province in WA, setting Chalice firmly on course to become a globally significant player in the critical ‘green metals’ space. “This review concluded that the creation of a new gold-focused explorer would be the optimal structure to ensure that the full potential of the gold portfolio can be realised, while allowing Chalice to continue to focus on completing the resource drill-out and rapidly advancing studies at Julimar. “The compelling recent exploration results in both Victoria and WA have added further rationale to a potential demerger. Exploration activities are ramping up considerably across the new West Yilgarn Ni-Cu-PGE Province in WA following our continued success at Julimar, while recent drilling in Victoria has continued to provide excitement in the background, as outlined further in this announcement. “The recent results at Pyramid Hill are tantalising from a greenfield exploration perspective, given the immense regional endowment in the Bendigo Zone. We are also eagerly anticipating our first drill program at the Viking Project in WA in Q4 2021, where we will be following up on some shallow highgrade gold intersections. We look forward to working closely with the new entity as it scales up exploration both in Victoria and WA.”
160 km drilling program continues, with 7 drill rigs in operation. The initial drilling program is 55% complete. 165 new high grade drill intersections reported.
94 assay results pending.
The expansion of the mineralised footprint will neccessitate an expansion of the drilling program, and delay the maiden resource estimate to late Q3 2021.
Jullimar initial drilling targeted for Q3, 2021.
Chalice Managing Director, Alex Dorsch, said: “Even after 87,000m over more than 13 months of continuous drilling, we continue to expand on the footprint of our major Julimar discovery; a quite remarkable result that demonstrates the potential world-class nature of the discovery.
“The new intersections at the north-east extension of Gonneville are promising, as the previously identified discrete pods of high-grade mineralisation appear to be associated with a newly identified pyroxenite host unit. This new ultramafic unit appears to continue further to the north-east, and the recently secured property acquisitions will allow us to test this potential shortly.
“Given the continued expansion of the Gonneville deposit, in particular the growth of the high-grade zones, the quantum of drilling required to define the maiden Mineral Resource is likely to grow. We are now anticipating resource definition drilling will continue into Q3 2021 and the maiden Mineral Resource will be released in late Q3 2021.
“Concurrently with the 7-rig resource drill-out, we are continuing our comprehensive metallurgical testwork program on both the sulphide and oxide mineralisation, and we have commenced several other preliminary studies that will guide the scoping and feasibility stages.
“We are also nearing completion of initial on-ground activities within the Julimar State Forest to the north of Gonneville. Flora and fauna surveys are currently underway in the area, ahead of proposed initial drilling, which is targeted for Q3 2021, subject to access approval.”
Chalice reported today they have acquired 723 hectares of privately owned land, bringing the combined total land acquired to 1668 hectares, which covers the known mineralisation of the Gonneville Intrusion, athough the resource remains open to the West.
New highly prospective EM conductors and nickel-copper soil anomalies defined at Hartog Target, Julimar Project
Extensive soil anomalies and discrete EM conductors identified from initial on ground exploration at the ~6.5km long Hartog Target, located directly north of the Gonneville discovery
12-Oct-2020: Presentation - Diggers and Dealers Mining Forum
CHN rose +17% today on the back of that presso at D&D. Below is a link to the same presentation WITHOUT that annoying "FOR PERSONAL USE ONLY" watermark that the ASX is adding to everything - and making everything hard to read...
12-May-2020: Corporate Presentation - 12 May 2020
Also: 14-May-2020: Chalice Raises A$30 million to Fund Next Phase at Julimar
Bumper results from last week. New wide high-grade palladium-nickel-copper zone intersected~60m east of the discovery hole, plus wide palladium intervals in all six drill holes assayed to date. They have also named the discovery as the Gonneville Intrusive.
Also the March drill hole (conductor A) that had no sulphides does however have a broad zone of PDN and PGM mineralisation present
Has run quite hard. I think they are still waiting on results for assays to come back on other metals (ie: Rhodium etc..).
NB: I bought in at 0.55 about a few days before the trade halt for the second set of Julimar results. My order did not show as I put it in right after the trade halt (??).
Been in trading halt since last week pending drill results for their Julimar project.