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Chalice Gold Mines Ltd
Symbol CXN
Shares Issued 261,112,870
Close 2018-07-11 C$ 0.14
Market Cap C$ 36,555,802
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Chalice identifies IOCG anomalies at Warrego North

2018-07-16 09:53 ET - News Release

Mr. Alex Dorsch reports

CHALICE GOLD MINES LIMITED - LARGE COPPER-GOLD TARGET TO BE DRILLED AT WARREGO NORTH PROJECT, NT

Chalice Gold Mines Ltd. has identified a series of high-priority IOCG (iron-oxide-copper-gold) anomalies, collectively termed the Emu target, on 100-per-cent-owned tenure within its Warrego North copper-gold project in the Northern Territory, Australia.

Highlights:

  • A series of highly prospective and untested IOCG anomalies, collectively known as Emu target, identified from regional aeromagnetic and ground gravity data on 100-per-cent-owned tenure at the Warrego North copper-gold project;
  • The coincident magnetic-gravity anomalies sit along a five-kilometre-long target corridor;
  • Emu target located about 15 kilometres north of the historical Warrego mine (seven million tonnes at 2.5 per cent copper, seven grams per tonne gold for 175,000 tonnes contained copper and 1.6 million ounces contained gold) and is interpreted to be hosted in similar Warramunga formation sediments;
  • Drilling scheduled to commence in August, 2018, subject to statutory approvals.

Reverse circulation drilling is scheduled to start at the Emu target within weeks. All the anomalies have been identified by both aeromagnetic and gravity (ground) surveys. The anomalies are interpreted to represent prospective ironstone bodies, which are the rocks known to host to all major Tennant Creek IOCG deposits.

The Emu target

The Emu target consists of a series of interpreted ironstones that form a north-northeast-trending linear corridor of aeromagnetic anomalies over a strike length of five kilometres. The aeromagnetic anomalies, like the Warrego deposit, lie adjacent to the Devils Suite Granite, a late Paleoproterozoic intrusion interpreted to be an important source of heat and/or fluid for the IOCG deposits.

Three untested anomalies have been prioritized for drill testing based on coincidental aeromagnetic and gravity responses. Four reverse circulation holes for approximately 1,200 metres are planned in the initial program to test the targets for concealed ironstones and any associated copper and gold mineralization.

Next steps

Reverse circulation drilling at Emu target is scheduled to commence in August, 2018, subject to statutory approvals, and assays are expected within approximately one month of completion of drilling.

Chalice is anticipating that application EL31609, which contains the highly promising Rooster target, will progress toward grant later in 2018. After which, diamond drilling is planned to test several identified ironstone targets there.

Alex Dorsch, Chalice's chief executive officer, said: "The Tennant Creek area is known for prolific high-grade IOCG deposits. These deposits have a small surficial footprint, but can extend at depth, making them very attractive and potential company-making targets.

"These latest results support our view that Emu target has the potential to host high-grade copper and gold mineralization, and we eagerly await results from drilling."

About the Warrego North copper-gold project

The Warrego North project is located approximately 20 kilometres northwest of the historical high-grade Warrego copper-gold mine in the western part of the Tennant Creek mineral field in the Northern Territory. Warrego was the largest deposit mined in the area, with historical production of about 1.6 million ounces of gold and about 175,000 tonnes of copper (in a classic IOCG geological setting). Chalice optioned part of the project in April, 2016, from Meteoric Resources and can earn up to a 70-per-cent interest in two tenements within the project by sole financing $800,000 (Australian). Three additional tenements surrounding the Meteoric joint venture tenure are owned 100 per cent.

Competent person and qualifying person statement

The information in this report that relates to exploration results in relation to the company's projects is based on information compiled by Dr. Kevin Frost, BSc (honours), 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.

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