Tier-1 scale maiden Mineral Resource for Gonneville; Julimar Project

    Published on November 9th, 2021

    Largest nickel sulphide discovery in over 20 years and largest PGE discovery in Australian history establishes foundation for world-class ‘green metals’ project. See highlights below for the Mineral Resource for Gonneville.

    HIGHLIGHTS

    « Maiden Indicated and Inferred, pit constrained, mineral resource estimate (Resource) defined for the Gonneville PGE-Ni-Cu-Co-Au deposit (Deposit), located on Chalice-owned farmland within the 100%-owned Julimar Project, ~70km NE of Perth, WA:

    « 330Mt @ 0.94g/t 3E¹, 0.16% Ni, 0.10% Cu, 0.016% Co (~0.58% NiEq²or ~1.6g/t PdEq³);
    « Containing 10Moz 3E, 530kt Ni, 330kt Cu, 53kt Co (~1.9Mt NiEq or ~17Moz PdEq);
    « ~150Mt (45%) is within the Indicated category (55% within the Inferred category);
    « Resource is constrained within a pit shell and reported above a 0.4% NiEq cut-off grade (sulphide) and 0.9g/t Pd cut-off grade (oxide).

    « The pit-constrained Resource includes a significant higher-grade sulphide component above a 0.6% NiEq cut-off grade, starting from a depth of ~30m:

    « 74Mt @ 1.8g/t 3E, 0.22% Ni, 0.21% Cu, 0.021% Co (~1.0% NiEq or ~2.8g/t PdEq);
    « Containing 4.2Moz 3E, 160kt Ni, 150kt Cu, 15kt Co (~760kt NiEq or ~6.6Moz PdEq);
    « This higher-grade component affords the project significant optionality in development and could potentially materially enhance project economics in the initial years of operations.

    « Gonneville is already the largest nickel sulphide discovery worldwide since 20004 (>20 years), and the largest PGE discovery in Australian history.
    « The Deposit remains open to the north and at depth, demonstrating the potential for material growth with ongoing drilling.

    « High-grade mineralisation begins at surface and has already been intersected ~60m below the limit of the Resource pit;
    « Wide-spaced extensional drilling is continuing down-plunge, with >1,000m of potential plunge extent yet to be fully tested on Chalice-owned farmland.

    « The maiden Resource, which is interpreted to cover just ~7% of the 26km long Julimar Complex, confirms the world-class nature of the Julimar Project, and demonstrates the potential for the project to become a strategic, long-life ‘green metals’ asset.

    1 3E = Palladium (Pd) + Platinum (Pt) + Gold (Au), with an average in-situ ratio of ~4:1:0.04 (Pd:Pt:Au)
    2 NiEq (Nickel Equivalent %) = Ni (%) + 0.37xPd (g/t) + 0.24xPt (g/t) + 0.25xAu (g/t) + 0.65xCu (%) + 3.24xCo (%)
    3 PdEq (Palladium Equivalent g/t) = Pd (g/t) + 0.66xPt (g/t) + 0.67xAu (g/t) + 2.71xNi (%) + 1.76xCu (%) + 8.78xCo (%)
    4 Source: S&P Global Market Intelligence, Capital IQ


    Overview
    Chalice Mining Limited (“Chalice” or “the Company”, ASX: CHN | OTCQB: CGMLF) is pleased to report its maiden Mineral Resource Estimate (Resource) for the Gonneville Deposit (Deposit), the first discovery at its 100%-owned Julimar Nickel-Copper-Platinum Group Element (PGE) Project, located ~70km north-east of Perth in Western Australia.

    The Company has defined a tier-1 scale, pit-constrained maiden Resource for Gonneville on Chaliceowned farmland, which includes a mix of oxide, transitional and sulphide mineralisation. The sulphide mineralisation is reported at two different cut-off grades in order to highlight the scale and development optionality the Deposit affords.

    The robust nature of the Resource is demonstrated by the relatively flat grade-tonnage curves (Figure 2 and Figure 3), which highlight the significant quantity of sulphide mineralisation at higher cut-off grades. The significant high-grade component of the Resource provides excellent optionality for any future development, could potentially materially improve project economics in the initial years of operation and will be a key focus of the project Scoping Study, which is currently in progress. Note, the grade-tonnage curves for the Resource include material classified as Inferred, where data are insufficient to allow the geological grade and continuity to be confidently interpreted.

    Drilling is continuing at the ~1.9km x 0.9km Deposit outside the maiden Resource, with assays pending for ~160 drill holes and five rigs continuing to test for extensions of high-grade mineralisation.

    Gonneville remains open at the Julimar State Forest boundary to the north, where approval to drill over a further ~10km of strike length is anticipated to be received shortly. The Deposit also remains open beyond a depth of ~630m.

    The completion of the maiden Resource is a significant milestone for the Julimar Project and provides a strong foundation for the ongoing Scoping Study, which is scoping the initial mine development options at Gonneville, and is expected to be completed in Q2 2022.

    Commenting on the maiden Resource, Chalice Managing Director & Chief Executive Officer, Alex Dorsch, said: “This is a major milestone for Chalice, coming just 18 months after our stunning first hole discovery at Julimar. Since then, we have completed more than 175,000m of diamond and RC drilling and now defined a genuine tier-1 scale deposit of critical minerals, with exceptional growth potential.

    “The Resource confirms that Gonneville is the largest nickel sulphide discovery globally in over two decades, and the largest PGE discovery in Australia’s history – a remarkable achievement considering that this is the first discovery in what we consider to be an entirely new district, Julimar, within a new nickel-copper-PGE province, the West Yilgarn.

    “Given its sheer scale, the attractive suite of six payable metals it contains and its premier location close to world-class infrastructure and services in Perth, Chalice clearly has the potential to become a leading global player in the green metals space.

    Read full Announcement

    SOURCE: Chalice Mining Limited
    DATE: November 9, 2021

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