ABN 47 116 648 956

ASX Announcement 16 June 2017 Chalice discovers copper-gold mineralisation at Warrego North Project, NT

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 (Figure 1). 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 (See ASX announcement dated 15 June 2016).

The Company's first diamond drill hole at Warrego North, WND17-001, targeted a coincidental magnetic-gravity and IP chargeability anomaly (Figures 2 and 3) and intersected interstitial and stringer (vein) style chalcopyrite mineralisation in magnetite ironstone grading 8m @ 1.74% Cu and 0.42g/t Au between 249-257m down-hole depth (Figure 4).

The entire magnetite ironstone is mineralised, 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 mineralisation associated with pervasive chlorite and sericite alteration that suggests the presence of a potentially extensive hydrothermal system at the Parakeet prospect (see Figure 3 and Table 1). 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.

Chalice Gold Mines Limited, Level 2, 1292 Hay Street, West Perth, Western Australia T: +618 9322 3960 F: +618 9322 5800 E: info@chalicegold.com www.chalicegold.com

Limited historical IP surveying in 2005 on 2 lines across the Parakeet target identified two chargeability anomalies (see Figure 3), 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.

Figure 1. Location map of Warrego North Project (Parakeet Prospect), NT

Figure 2. Parakeet aeromagnetic image with superimposed gravity, IP and drill collars.

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Figure 3. Parakeet Cross Section A-B: Drilling over IP Chargeability

Figure 4. Diamond Hole WND17-001 - 249.3-258.15m showing copper and gold assays.

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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.

TIM GOYDER

Managing Director

For further information, please contact: Tim Goyder, Managing Director

Chalice Gold Mines Limited Telephone +618 9322 3960

16 June 2017

For media inquiries, please contact: Nicholas Read

Read Corporate

Telephone +618 9388 1474

Hole Id

Description

Depth From

Depth To

Interval

Cu %

Au g/t

Fe %

WND17-001

Pre-Collar

95

96

1

0.26

0.05

12.1

WND17-001

Pre-Collar

97

101

4

0.55

0.22

7.2

WND17-001

Pre-Collar

106

110

4

0.68

0.19

10.5

WND17-001

Pre-Collar

121

122

1

0.36

0.10

6.9

WND17-001

Diamond

138

148

10

0.30

0.04

6.6

WND17-001

Diamond

149

150

1

0.11

0.01

5.3

WND17-001

Diamond

239

241

2

0.21

0.04

4.5

WND17-001

Diamond

243

244

1

0.17

0.04

10.8

WND17-001

Diamond

239

241

2

0.14

0.03

5.0

WND17-001

Diamond

248.5

249

0.5

0.25

0.30

34.3

WND17-001

Diamond

249

257

8

1.74

0.42

34.2

WND17-001

Diamond

257

258

1

0.13

0.04

18.8

WND17-001

Diamond

260

261

1

0.11

0.10

6.5

WND17-001

Diamond

266

267

1

0.21

0.06

23.2

WND17-001

Diamond

270

271

1

0.22

0.05

14.2

WND17-001

Diamond

272

273

1

0.15

0.06

5.9

WND17-001

Diamond

281

282

1

0.13

0.09

15.9

WND17-001

Diamond

286

287

1

0.12

0.03

14.6

WND17-001

Diamond

289

290

1

0.17

0.03

14.8

Table 1. Significant Assay results above >0.1% copper (WND17-001)

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Chalice Gold Mines Limited published this content on 16 June 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 15 June 2017 23:30:08 UTC.

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