Chalice Consolidates 100 Percent of Part of East Cadillac Gold Project

Chalice Gold Mines Limited (TSX:CXN,ASX:CHN) announced that it has further consolidated its highly prospective East Cadillac Gold project in the world-class Abitibi gold belt of Canada after acquiring the remaining 30 percent interest in its joint venture property with Monarques Gold Corporation (TSXV:MQR).

As quoted in the press release:

The Property represents an integral part of the overall East Cadillac Gold project, as it covers a 16 kilometers 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 C$3.1 million, made total option payments of C$200,000 and granted a 1 percent Net Smelter Return (NSR) royalty to earn a 70 percent interest in the property.

Chalice has since agreed to acquire the remaining 30 percent interest in the property for 3 million fully-paid ordinary Chalice shares and by granting an additional NSR royalty to Monarques of 0.5-1.5 percent (0.5 percent on certain claims with pre-existing royalties and 1.5 percent on all other claims).

The Property now has combined NSR royalties of 2.5 percent on all claims with Chalice able to buy back 0.5 percent of the NSR royalty from Monarques for C$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 percent-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 3D-IP 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.