CHALICE MINING LIMITED Chalice Gold Mines Limited |
Contents |
Directors' Report 3
Auditor's Independence Declaration 7
Condensed Statement of Comprehensive Income 8
Condensed Statement of Financial Position 9
Condensed Statement of Changes in Equity 10
Condensed Statement of Cash Flows 11
Notes to the Condensed Consolidated Financial Statements 12
Directors' Declaration 18
Independent Auditor's Review Report 19
Chalice Gold Mines Limited |
Directors' Report |
For the half year ended 31 December 2015 |
Your directors submit the financial report for Chalice Gold Mines Limited ('Chalice' or 'the Company') and its subsidiaries (together 'the Group') for the half year ended 31 December 2015. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:
The names of directors who held office during or since the end of the half year and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated.
Anthony W Kiernan Chairman |
Timothy R B Goyder Managing Director |
Stephen P Quin Non-executive Director |
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Overview
Chalice Gold Mines Limited ("Chalice" or "the Company") is pleased to report on an active period during which it carried out work on a number of fronts to progress and de-risk its 100%-owned Cameron Gold Project ("the Project") in Ontario, Canada.
Independent specialist resource and mining consulting group, Optiro Pty Ltd, completed an updated mineral resource estimate for the Cameron deposit, the main deposit within the larger Cameron Gold Project. In addition to achieving its objective of upgrading the Cameron deposit mineral resource estimate, the Company has now updated a 3D geological model of the deposit that has further clarified its understanding of the controls on the mineralisation. As a result, the geological risks associated with the mineral resource model have been reduced.
During the period, Chalice also completed the first-ever modern, systematic exploration program to be undertaken at the Project, where the Company is focused on adding additional potentially economic open-pit ounces in close proximity to the main deposit. This program generated a number of encouraging results, establishing a pipeline of exploration opportunities to be progressed during 2016.
In addition, the Company has continued to assess numerous business development opportunities internationally with the objective of securing further high potential resource projects.
- Cameron Gold Project, Ontario, Canada Cameron Mineral Resource
In November 2015, Chalice updated the mineral resource estimate for the Cameron Gold Project. The mineral resource estimate was based on an extensive re-logging program of 771 existing diamond drill holes, assay results from approximately 30,000 new samples were collected from existing core, and the construction of a new geological model.
The updated measured, indicated and inferred mineral resource for the Cameron Gold Project - including the main Cameron deposit and satellite Dubenksi and Dogpaw deposits (which remain unchanged from those previously announced)
- is summarised in Table 1 below:
Chalice Gold Mines Limited
Directors' ReportFor the half year ended 31 December 2015
Deposit | Cut-off g/t | Class | Tonnes | Gold g/t | Gold Ounces |
Cameron deposit1,2 | 0.5g/t | Measured | 3,723,000 | 2.64 | 316,000 |
Indicated | 4,101,000 | 1.92 | 253,000 | ||
M+I | 7,824,000 | 2.26 | 569,000 | ||
Inferred | 14,464,000 | 1.92 | 894,000 | ||
Dubenski deposit2 | 1.0g/t | Measured | - | - | - |
Indicated | 806,000 | 2.28 | 59,000 | ||
M+I | 806,000 | 2.28 | 59,000 | ||
Inferred | 392,000 | 1.44 | 18,000 | ||
Dogpaw deposit2 | 0.5g/t | Measured | - | - | - |
Indicated | 247,000 | 3.02 | 24,000 | ||
M+I | 247,000 | 3.02 | 24,000 | ||
Inferred | 64,000 | 2.27 | 5,000 | ||
Totals | Measured | 3,723,000 | 2.64 | 316,000 | |
Indicated | 5,154,000 | 2.03 | 336,000 | ||
M+I | 8,877,000 | 2.29 | 652,000 | ||
Inferred | 14,920,000 | 1.91 | 917,000 | ||
Mineral resources are not mineral reserves and do not have demonstrated economic viability. These mineral resource estimates include inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorised as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to the measured and indicated categories through further drilling, or into mineral reserves once economic considerations are applied. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.
The information relating to the Cameron Gold Project mineral resource estimate is extracted from the ASX Announcement entitled "Updated 1.57Moz Mineral Resource for the Cameron Gold Project" and the TSX news release entitled "Updated 652,000oz Measured and Indicated Mineral Resource and 917,000oz Inferred Mineral Resource for Cameron Gold Project in Canada" both released on 16 November 2015 and available to view at www.chalicegold.com and on SEDAR. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of mineral resources, that all material assumptions and technical parameters underpinning the estimates in relation to these deposits in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent and Qualifying Person's findings are presented have not materially modified from the original market announcement.
During the period, the Company completed the first-ever modern, project-wide, systematic exploration program at the Cameron Gold Project.
Exploration activities completed as part of this initiative included a comprehensive surface sampling program that included channel sampling of 10 new targets located in priority areas that had been identified from a previous desktop study, widespread rock chip sampling across the entire property, six reconnaissance mobile metal ion soil sampling grids and a structural study of key mineralised outcrops.
The key outcomes of the new sampling included:
significant gold rock chip results;
the identification of several new mineralised zones; and
an improvement in the Company's understanding of the controls on mineralisation across the property.
Chalice Gold Mines Limited issued this content on 03 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 03 February 2016 08:11:08 UTC
Original Document: http://www.chalicegold.com/images/ASXAnnouncements/2016/20160203_ASX_Announcement_half_year_accounts_2015.pdf
