Renegotiation of option agreement gives Chalice 100%
ownership of gold deposit near Cameron Project
Symbol:
ASX: CHN TSX: CXN
Shares
outstanding:
287
million
Fully
diluted:
291 million
PERTH, Western Australia, July
23, 2014 /CNW/ - Chalice Gold Mines ("The Company")
ASX:CHN TSX:CXN is pleased to advise that it has acquired the
Dubenski Gold Deposit in Ontario
Canada for C$700,000 by
successfully renegotiating an existing option agreement. The
acquisition gives Chalice 100% ownership of the gold deposit
located within 10km of the Cameron Gold Project.
The previous option agreement with the vendor included an
exercise price of C$3,500,000
(exercisable on or before April 30,
2017) plus a 2.5% Net Smelter Royalty. The Dubenski deposit
contains an Indicated Resource of 806,000 tonnes at 2.28 g/t for
59,000 ounces and an Inferred Resource of 392,000 tonnes at 1.44
g/t for 18,200 ounces at a cut-off grade of 1g/t to a depth of 150m
below surface.
Dubenski is located on Chalice's West Cedartree Project, less
than 10km to the west of the Cameron Gold deposit and provides an
important additional potentially open pittable source of material
to the existing Resources at the Cameron Project.
Key Acquisition Terms
The key terms and conditions of the Acquisition include:
- A consideration payment of C$700,000; and
- An additional payment on all gold production mined in excess of
70,000 ounces (being US$13 per ounce
where the gold price is less than or equal to US$1,500 per ounce and US$16 per ounce where the Gold price is greater
than US$1,500 per ounce).
The transaction is conditional upon any approvals and consents
that may be necessary under the legal and regulatory regime to
which the Dubenski Gold Deposit is subject.
Dubenski Project Background
The Dubenski Project consists of two contiguous mining leases
covering 377 ha within the West Cedartree Project.
Gold mineralisation at Dubenski is hosted by a sub-vertical
shear zone over a strike of 400m that is up to 20m wide and has
been delineated to a vertical depth of more than 150m. The
mineralisation consists of fine-grained pyrite and free gold
associated with carbonate, sericite, silica and locally, fuchsite
alteration within strongly-deformed mafic volcanic rocks. The
mineralisation is open in all directions.
Chalice's Managing Director Bill
Bent said, "We are very pleased to have renegotiated the
acquisition of the Dubenski deposit on favourable terms. Dubenski
will make an important contribution to our goal of continuing to
grow and enhance the Cameron Gold Project by securing additional
high-grade ounces in the region both through exploration success
and acquisition."
BILL BENT
Managing Director
Competent Persons and Qualified Person Statement
The
information relating to the mineral resource estimates reported
herein for Dubenski is derived from the sections of the Technical
Report dated February 5, 2014
prepared for Coventry Resources Limited by Mr. Peter Ball of Datageo Geological Consultants who
is a Chartered Professional and Member of the Australasian
Institute of Mining and Metallurgy. Mr. Ball has sufficient
experience in the field of activity being reported to qualify as a
Competent Person as defined in the 2012 edition of the Australasian
Code for Reporting of Exploration Results, Minerals Resources and
Ore Reserves, and is a Qualified Person under National Instrument
43-101 – 'Standards of Disclosure for Mineral Projects'. The
Qualified Person has verified the data disclosed in this release,
including sampling, analytical and test data underlying the
information contained in this release. Mr. Ball consents to the
inclusion in the announcement of the matters based on his
information in the form and context in which it appears.
Forward Looking Statements
This document may contain
forward-looking information within the meaning of Canadian
securities legislation and forward-looking statements within the
meaning of the United States Private Securities Litigation Reform
Act of 1995 (collectively, "forward-looking statements").
These forward-looking statements are made as of the date of this
document and Chalice Gold Mines Limited (the Company) does not
intend, and does not assume any obligation, to update these
forward-looking statements, except as required by law or
regulation.
Forward-looking statements relate to future events or future
performance and reflect Company management's expectations or
beliefs regarding future events and include, but are not limited
to, statements with respect to the estimation of mineral reserves
and mineral resources, the realisation of mineral reserve
estimates, the likelihood of exploration success, the timing and
amount of estimated future production, costs of production, capital
expenditures, success of mining operations, environmental risks,
unanticipated reclamation expenses, title disputes or claims and
limitations on insurance coverage.
In certain cases, forward-looking statements can be identified by
the use of words such as plans, expects or does not expect, is
expected, budget, scheduled, estimates, forecasts, intends,
anticipates or does not anticipate, or believes, or variations of
such words and phrases or statements that certain actions, events
or results may, could, would, might or will be taken, occur or be
achieved or the negative of these terms or comparable
terminology. By their very nature forward-looking statements
involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
the Company to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. Such factors include, among
others, risks related to actual results of exploration activities;
changes in project parameters as plans continue to be refined;
future prices of mineral resources; possible variations in ore
reserves, grade or recovery rates; accidents, labour disputes and
other risks of the mining industry, as well as those factors
detailed from time to time in the Company's interim and annual
financial statements, all of which are filed and available for
review on SEDAR at sedar.com. Although the Company has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements.
SOURCE Chalice Gold Mines Limited