Pyramid Hill Gold Project

The Opportunity

The 100%-owned Pyramid Hill Gold Project covers a highly prospective, district-scale tenement holding north of the world-class >22Moz Bendigo Gold Field.

Two extensive and coherent gold-in-soil anomalies, each approximately 12km long, have been identified from historical exploration data to date. These anomalies overlie major regional faults which are an important control on the multi-million ounce gold deposits located along strike, such as Bendigo, Ballarat and Castlemaine. Chalice’s granted tenure in the area now covers >70km of strikealong each of these faults.

The Bendigo region is currently enjoying a significant renaissance in gold exploration and development with the continued success of several nearby projects. These include one of the world’s highest grade gold mines, the Fosterville Gold Mine owned by Kirkland Lake Gold (NYSE / TSX: KL, ASX: KLA), located to the south-east. Further outstanding exploration success by Catalyst Metals’ (ASX: CYL) at its Four Eagles Project recently resulted in the best gold intersection ever recorded at the Boyd’s Dam Zone. The Four Eagles Project is located ~20km to the east, directly adjacent to Chalice’s tenure.

The Pyramid Hill Gold Project also leverages off the Victorian Government’s “Gold Undercover” initiative, which estimates a potential 32Moz* undiscovered gold endowment in the Bendigo Zone.

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Location

The Pyramid Hill Gold Project comprises a 3080km2 licence application, and includes coverage over the prospective regional faults where these transect Bendigo Zone geology in outcrop and beneath Murray Basin cover (Figure 1).

Figure 1. Pyramid Hill Project tenement holdings and regional gold occurences.

Geology and Exploration

Chalice has validated the two large historical gold-in-soil anomalies through a program of Bulk Leach Extractable Gold (BLEG) soil sampling. Given the success of this initial geochemical program, Chalice is planning additional geochemical sampling along strike of the west anomaly, which is currently open to the north and south, and to cover other highly prospective fault trends which have not previously been sampled.

Chalice has also reprocessed regional geophysical datasets to better define the location of the key regional faults, which are important controlling structures for the major gold deposits of the region. The Sebastian, Muckleford and Campbelltown Faults which host the Bendigo, Castlemaine and Ballarat gold deposits are interpreted to trend through the Company’s tenure.

Acquisition Terms

The Pyramid Hill Project is 100% owned.

*Lisitsin, V., Olshina, A., Moore, D.H. & Willman, C.E., 2007. Assessment of undiscovered mesozonal orogenic gold endowment under cover in the northern part of the Bendigo Zone. GeoScience Victoria Gold Undercover Report 2, Department of primary Industries.