Chalice Enters Option to Aquire Abitibi Gold Project in Quebec

Chalice Gold (TSX:CXN) has entered into a binding option and farm-in term sheet with Globex Mining (TSX:GMX) to acquire Globex’s interest in the Nordeau Gold Project in the Abitibi region in Quebec.
As quoted in the press release:

Chalice may acquire the interest in the Project by making annual option payments totaling C$590,000 over four years to Globex (including an initial payment of C$120,000 in the first year) and undertaking exploration expenditures of C$2.5 million also over a four year period as set out in Table 1. Upon exercising the option Chalice will grant a 3% Gross Metal Royalty to Globex (there are currently no existing royalties in relation to the Project and no government royalties). Chalice has the right to withdraw without earning an interest in the Project at any time.
The agreement is subject to satisfactory completion of due diligence primarily in relation to matters of tenure.
The Nordeau Gold Project
The Nordeau Gold project is located about 40km east of Val d’Or and comprises approximately 1,450Ha of claims located over about 9km of strike length of the Larder Lake-Cadillac fault (see Figure 1).  The Project is located about 1km from the former Chimo gold mine that operated over three periods from the 1960’s through to 1997.  Underground mining at Chimo was undertaken on multiple gold lodes that extended up to 870m below surface demonstrating that gold systems in the area have a significant vertical extent.
Previous exploration of the Nordeau Gold Project has located gold mineralization along structural trends on, or parallel to, the main lithological contacts between mafic volcanics, mafic intrusives, iron formation and Timiskaming sedimentary rock sequences.
Previous drilling of 121 diamond drill holes on the property has provided the basis for a historical mineral resource (the “Historical Mineral Resource”) which was compliant with the reporting standard of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) of the Canadian Securities Administrators. In 2009, Plato Gold Corp. commissioned a NI 43-101 technical report and mineral resource estimate of Nordeau West following drilling undertaken up to 2006-2007.
Gold grades were determined using an inverse distance – squared algorithm into a 3-D (Gemcom) block model with x-y-z (i.e., east –west, north – south, vertical) block dimensions of 5.0 m x 2.5 m x 5.0 m. At a cut-off grade of 2.75g/t Au, the Historical Mineral Resource contains an Indicated Mineral Resource of 225,342t @ 4.17 g/t Au (30,212 oz Au) and an Inferred Mineral Resources of 1,112,321t @ 4.09 g/t Au (146,315 oz Au). A Qualified Person has not undertaken sufficient work to classify the Historical Mineral Resource as current and therefore cannot be relied upon. Should the Company wish to prepare a current mineral resource estimate it will recalculate the mineral resource using current inputs and assumptions.

Click here to read the full press release.