Mr. Alex Dorsch reports
CHALICE CONSOLIDATES 100% OF KEY PART OF EAST CADILLAC GOLD PROJECT IN QUEBEC AFTER ACQUIRING 30% INTEREST FROM MONARQUES GOLD CORPORATION
Chalice Gold Mines Ltd. has further consolidated its highly prospective East Cadillac gold project in the world-class Abitibi gold belt of Canada after acquiring the remaining 30-per-cent interest in its joint venture property with Monarques Gold Corp.
The property represents an integral part of the overall East Cadillac gold project, as it covers a 16-kilometre strike along the highly prospective Larder Lake -- Cadillac Fault, where recent drilling by Chalice has confirmed extensive gold mineralization at the Simon West, Simon Far West and North Contact prospects.
Under the original option and farm-in agreement, in March, 2018, Chalice met its minimum exploration expenditure commitment of $3.1-million, made total option payments of $200,000 and granted a 1-per-cent net smelter return royalty to earn a 70-per-cent interest in the property.
Chalice has since agreed to acquire the remaining 30-per-cent interest in the property for three million fully paid ordinary Chalice shares and has granted an additional NSR royalty to Monarques of 0.5 per cent to 1.5 per cent (0.5 per cent on certain claims with pre-existing royalties and 1.5 per cent on all other claims).
The property now has combined NSR royalties of 2.5 per cent on all claims with Chalice able to buy back 0.5 per cent of the NSR royalty from Monarques for $1.0-million at any time.
The acquisition further strengthens Chalice's strategic position in the Abitibi greenstone belt and provides it with a large, contiguous 100-per-cent-owned tenement position in this world-class gold province.
Chalice is currently conducting an extensive field program over the project, including extending soil and rock chip geochemistry, airborne magnetics, and 3-D induced polarization geophysics coverage. The program is progressing on time and on budget and is expected to be completed in October.
Based on the results of the current field program and the previous phase of reconnaissance drilling, the company expects to have prioritized drill targets ready for the next phase of drilling to commence in the upcoming winter field season.
The East Cadillac gold project
The East Cadillac gold project covers an area of 245 square kilometres and is located about 35 km east of the greater than 20-million-ounce Val d'Or gold camp in Quebec, Canada. With landholdings encompassing a strike length of 27 km of the Larder Lake-Cadillac fault, the most prolifically endowed gold trend in the southern Abitibi, the project is situated amongst some of the region's most significant mines and surrounds the historical Chimo gold mine, owned by Cartier Resources.
The East Cadillac project was acquired by Chalice in late 2016 and further consolidated with several earn-in option agreements (Chalice earning 70 to 100 per cent) and 100-per-cent-owned claims. Since acquiring the project, Chalice has completed systematic geochemistry and geophysics field programs as well as a about 27,600 m regional diamond drilling program targeting large-scale gold systems, with three new discoveries made to date.
We seek Safe Harbor.
© 2024 Canjex Publishing Ltd. All rights reserved.