Chalice discovers copper-gold mineralization at Warrego North Project, NT
Monday, Jun 19, 2017

Highlights

  • Tennant Creek-style IOCG mineralisation confirmed at the Parakeet prospect, with maiden drill hole WND17-001 returning an intercept of 8m at 1.74% Cu and 0.42g/t Au from 249m down-hole.

  • Associated stringer (vein)-style mineralisation and pervasive chlorite + sericite alteration adjacent to the main intercept suggests the presence of a potentially extensive hydrothermal system.

  • A follow-up ground Induced Polarisation (IP) survey is planned to systematically test for potential extensions to the known copper-gold mineralisation and to test the broader Parakeet magnetic/gravity anomaly for additional mineralised magnetite ironstone bodies.

  • Additional untested robust chargeability anomaly lies ~300m north of WND17-001.

Chalice Gold Mines Limited ("Chalice" or the "Company") (ASX: CHN) (TSX: CXN) is pleased to advise that assay results from its maiden drilling program at the Warrego North Project in the Northern Territory have confirmed the presence of potentially significant Tennant Creek-style IOCG mineralisation at the Parakeet geophysical prospect.

The Warrego North Project is located ~20km north-west of the historical high-grade Warrego copper-gold mine in the western part of the Tennant Creek Mineral Field. Warrego was the largest deposit mined at Tennant Creek with historical production of 1.3Moz of gold and 90,000t of copper from 5 million tonnes of ore at 8g/t Au and 2% Cu. Chalice can earn up to a 70% interest in the Project from Meteoric Resources NL (ASX: MEI) by sole funding $800,000 in expenditure.

Work undertaken by Chalice includes a 2-hole RC/diamond drilling program comprising 276m of reverse circulation (RC) precollars and 479.8m of NQ2 diamond coring.  Drill hole collars were located by handheld GPS with error of about +/-3m.

The Company's first diamond drill hole at Warrego North, WND17-001, targeted a coincidental magnetic-gravity and IP chargeability anomaly and intersected interstitial and stringer (vein) style chalcopyrite mineralization in magnetite ironstone grading 8m @ 1.74% Cu and 0.42g/t Au between 249-257m down-hole depth.  

The entire magnetite ironstone is mineralized, with the maximum grade of 4.82% Cu indicating potential for high-grade copper similar to other copper-(gold) mines in the Tennant Creek Mineral Field.  While the presence of higher copper-gold grades is encouraging, drill hole WND17-001 also intersected lower grade stringer (vein) style mineralization associated with pervasive chlorite and sericite alteration that suggests the presence of a potentially extensive hydrothermal system at the Parakeet prospect. Assay results for the remainder of WND17-001 from 299m to end-of-hole depth (401m) are pending although no significant ironstone units were intersected.

True widths and the overall orientation of the mineralisation and alteration zones cannot be accurately determined due to the limited amount of available geological information.      

Limited historical IP surveying in 2005 on 2 lines across the Parakeet target identified two chargeability anomalies, of which drill hole WND17-001 tested the southern anomaly.  The Company is also encouraged by the presence of a second, stronger chargeability anomaly located about 300m north of WND17-001, on the northern margin of the Parakeet magnetic/gravity anomaly, which remains untested and could indicate potential for additional sulphide mineralisation in that area.

Drill hole WND17-002 was collared approximately 600m south-west of WND17-001 and intersected Warramunga Formation sediments with no visible sulphide mineralisation to the end-of-hole depth of 354.8m.  Assay results are pending.

Sampling Techniques

Samples were collected from both 5 ½ inch face sampling hammer in Reverse Circulation (RC) precollars and NQ2 diamond drill core.  RC samples were collected at 1m intervals directly from a cyclone and composited at up to 5m intervals.  Diamond drill core was cut by diamond saw into both half and quarter core.  Diamond core samples were collected at intervals of between 0.3m and 1.3m on the basis of consistent lithology and/or mineralisation.  A total of 82 RC and 130 diamond drill core samples were bagged and shipped in sealed sacks to accredited laboratory ALS laboratories in Adelaide and Perth, Australia.  Samples were analysed by 50g fire assay (Au-AA26) and 4-acid digest with ICP-AES finish (ME-ICP61).

The Company's QA/QC procedures comprise the use of Certified Reference Material (CRM), field duplicates and blanks at approximately 1 in 20 samples.  The Company's assessment of QA/QC has not identified any issues with analyses reported.

No independent sampling or audits have been undertaken given the early stage nature of the drill program.

JORC 2012

Further details on sampling techniques, reporting of exploration results can be found within the JORC 2012 tables by clicking here.

Next Steps

The Company is encouraged by the results of its maiden drilling program, and plans to commence a detailed 3D Induced Polarisation (IP) survey in July 2017, the results of which will be used to assist in planning immediate follow-up drilling for extensions to the mineralisation discovered in hole WND17-001 and the second, stronger, chargeability anomaly.

For more information, please visit: http://www.chalicegold.com

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