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CHALICE MINING LIMITED — Investor Presentation 2010
Feb 22, 2010
64649_rns_2010-02-22_f9a79262-122e-40c2-b93d-8ae1eb9d5014.pdf
Investor Presentation
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ASX: CHN
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“Cornerstone of an African Gold Business ”
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Corporate Presentation
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www.chalicegold.com.au
Snapshot
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Ke asset: 80%‐owned Zara Gold Pro ect y j ,
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Definitive Feasibilit Stud due mid‐2010 y y
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JORC resource 944,000oz @ 5.8g/t Au
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‐
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Targeting initial high margin production
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F o r ecast US$ 424 /o z cas h ope r at in g costs
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Substantial exploration upside
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Extensive strategic footprint in emerging
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Corporate
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Snapshot 6 month share price
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137 . 4M 10.075M $7 . 3M
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Tim Goy d er (Executive Chairman)
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Dr Doug Jones (Managing Director)
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• Mik e r G iffi t h s (Executive Director)
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- Anthony Kiernan (Non‐Executive Director)
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- 14.5%
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6.1%
Zara – Project Location
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Emerging gold & base metal
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Gold endowment >20Moz –
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Minimal modern exploration
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New world‐class projects being
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13Moz Sukari Gold Mine (Egypt) –
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Bisha Gold & Base Metal Mine
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copper, 1Blb s z nc, i 9M oz s il ver –
under construction (Nevsun)
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Zara – Project Location
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Zara Project – Regional Setting
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Major regional structural
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Granted tenements cover 50km
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Numerous prospects identified
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Koka Deposit has been main
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Koka Gold Deposit
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JORC compliant resource of 5.04Mt
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Based on results from 109 diamond
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600m strike length, 20‐30m wide
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Only drilled to 250m below surface
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Bulk of resource shallower than
| Category | Lower | Tonnes | Gold (g/t) | Metal | ||
|---|---|---|---|---|---|---|
| grade cut‐ off (g/t) |
(Mt) | (Koz) | ||||
| Indicated | 1.2 | 4.55 | 5.9 | 867 | ||
| Inferred | 1.2 | 0.49 | 4.9 | 77 | ||
| TOTAL | 1.2 | 5.04 | 5.8 | 944 |
Koka Gold Deposit – Looking North
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Artisanal Workings
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Koka Gold Deposit – 3D Model
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Koka Gold Deposit – Cross Sections Recent Drilling
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Koka Gold Deposit – In‐fill Drilling
| Hole From (m) To (m) Interval (m) Gold (g/t) ZARD128 44 75 31 6.48 |
Hole From (m) To (m) Interval (m) Gold (g/t) ZARD128 44 75 31 6.48 |
Hole From (m) To (m) Interval (m) Gold (g/t) ZARD128 44 75 31 6.48 |
Hole From (m) To (m) Interval (m) Gold (g/t) ZARD128 44 75 31 6.48 |
Hole From (m) To (m) Interval (m) Gold (g/t) ZARD128 44 75 31 6.48 |
Hole From (m) To (m) Interval (m) Gold (g/t) ZARD128 44 75 31 6.48 |
|
|---|---|---|---|---|---|---|
| Hole | From (m) |
To (m) |
Interval (m) |
Gold (g/t) |
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| ZARD128 | 44 | 75 | 31 | 6.48 | ||
| including | 44 | 46 | 2 | 38.22 | ||
| including | 52 | 55 | 3 | 18.68 | ||
| 79 | 82 | 3 | 7.78 | |||
| 104 | 108 | 4 | 3.25 | |||
| 116 | 117 | 1 | 31.48 | |||
| 143 | 144 | 1 | 100.5 4 |
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| ZARD 129 | 10 | 19 | 9 | 6.13 | ||
| 32 | 40 | 8 | 9.47 | |||
| ZARD 130 | 6 | 12 | 6 | 26.92 | ||
| 29 | 46 | 17 | 4 66 . |
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| ZARD 131 | 17 | 20 | 4 | 5.15 | ||
| 23 | 29 | 6 | 3.17 | |||
| 42 | 53 | 11 | 4.68 | |||
| 68 | 69 | 1 | 11.02 | |||
| 90 | 92 | 2 | 2778 | |||
. |
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| ZARD 132 | 9 | 27 | 18 | 29.30 | ||
| including | 9 | 11 | 2 | 49.14 | ||
| including | 14 | 15 | 1 | 71.28 | ||
| including | 18 | 19 | 1 | 188.2 5 |
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| including | 24 | 27 | 3 | 45.15 | ||
| 41 | 43 | 2 | 5.57 | |||
| 50 | 53 | 3 | 13.02 | |||
| ZARD 134 | 5.70 | 12 | 6.30 | 9.93 | ||
| 23 | 24 | 1 | 2170 | |||
| . | ||||||
| 38 | 39 | 1 | 20.25 | |||
| 45 | 56 | 11 | 8.29 |
Koka Gold Deposit – Mineralisation
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Quartz‐carbonate‐sulphide stockwork veins cutting
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Sulphides overall less than 2% – no impact on metallurgy –
Koka Gold Deposit – Metallurgy
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Metallurgical testwork at AMMTEC Perth completed
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Laboratory master composite prepared from 104 intervals
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Initial test work indicates ore is metallurgically benign:
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Allows simple processing route – conventional ball mill
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Scoping Study – Key Parameters
| Parameter **~ ** |
Parameter **~ ** |
Parameter **~ ** |
|
|---|---|---|---|
| Parameter | |||
| **~ ** | |||
| Average goldproduction | 110 000 ozper annum , |
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| Life of mine | ~ 6 years | ||
| Total capital costs | US$97.8 million | ||
| Total cash costs | US$424 per oz | ||
| Total gold mined | 712,000 oz | ||
| Gold recoveries | 95% | ||
| Gold produced | 677,000 oz | ||
| Plant capacity | 500,000 tpa | ||
| Mining costs | US$241 per oz | ||
| Processing costs | US$169 per oz | ||
| G&A costs | US$14 er oz | ||
| p | |||
| Total mined | 45.3 million tonnes | ||
| Ore milled | 3.4 million tonnes | ||
| Strip ratio | 12.4 |
Development Program
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Lycopodium to complete
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5,000m of diamond drilling to
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Hydrological drilling – initial
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Metallurgical test work
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• Socio‐economic studies & EIS
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2,500m of exploration drilling
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Expanded regional exploration
Koka Exploration – Near Mine
- Exploration to date has
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f ocuse d on Ko k a Main Zone
– very little drilling outside
this tar g et
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- Other targets identified in
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- Koka South Extension –
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- Koka East – artisanal
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quartz veins
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Koka South
- Strong IP resistivity anomaly
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south of Koka
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Limited drilling confirmed
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Potential ‘blind’ system
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Koka East
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commenced
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Zara Project – Regional Potential
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No ex loration in district before p
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Koka eolo ical settin extends g g g
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throughout ~600km² tenement
block
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Numerous prospects identified
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Drainage BLEG geochemical
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Initial Landsat interpretation
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completed
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Landsat Interpretation
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additional ground
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Eritrea Overview
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Stable operating and social
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Proactive Government stance
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Modern Mining Code
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Increasing foreign exploration
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groups now act ve n country i i
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Summary
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Disclaimer & Competent Person’s Statement
• For further information about Chalice Gold Mines Limited , visit the website at www . chalicegold . com
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sufficient experience in the field of activity being reported to qualify as a Competent Person as defined
in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources
and Ore Reserves, and consents to the release of information in the form and context in which it
appears here.
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Reporting of Exploration Results, Minerals Resources and Ore Reserves, and consents to the release of
information in the form and context in which it appears here.
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ASX: CHN
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“Cornerstone of an African Gold Business ”
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Corporate Presentation
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www.chalicegold.com.au