East Cadillac Gold Project

The Opportunity

The East Cadillac Gold Project is a consolidation of multiple properties located in the world class Abitibi greenstone belt in Quebec, Canada, which has known gold endowment of >210 million ounces. 

Figure 1.  Location map of East Cadillac Gold Project in the Abitibi sub-Province of Canada.

Recognising the lack of modern exploration work surrounding the historical Chimo Gold Mine (owned by Cartier Resources (TSX: ECR)), Chalice has completed a project-wide surface geochemical sampling program, which consisted of MMI soil, Black Spruce bark and rock-chip sampling. This significant dataset, combined with the completion of extensive geophysical surveys including 3D IP and aeromagnetic surveys, has resulted in the identification of numerous high-priority targets (Figure 2).

Chalice has recently completed a regional scale, geochemistry, geophysics and ~27,000m diamond drilling program. Two highly prospective gold mineralised zones have been discovered to date, with drilling confirming 3.5km of strike at the Simon West and North Contact. Results are expected throughout the first half of 2018. For the latest results refer to our ASX Announcements

 

Figure 2. Project regional geology map and significant drilling intercepts.  

Location

The Project covers an area of 245km2 and is located 27km east of the c.20Moz Val-d’Or gold camp (Figure 3). With land-holdings encompassing a strike length of 16km of the Larder Lake-Cadillac Fault, the most prolifically endowed gold trend in the southern Abitibi, the Project is situated amongst some of the region’s most significant mines, including:

  • Agnico Eagle – LaRonde (>12Moz @ ~5g/t)
  • Eldorado – Sigma Lamaque (>11Moz @ ~7g/t)
  • Canadian Malartic (>10Moz @ ~1.1g/t)
  • Agnico Eagle – Goldex (>5Moz @ ~1.7g/t)

The Project surrounds the historical Chimo gold mine, which produced c. 379koz Au @ 4.8g/t.  

Figure 3. The East Cadillac Gold Project is on strike with several significant gold mining operations.

Geology

The Abitibi Greenstone Belt overlies a highly sheared sequence of altered greywacke, iron formation and mafic volcanic rocks. Gold mineralization on the East Cadillac Project is found associated with quartz veins containing disseminated to semi-massive sulphides, typically within sedimentary rocks in close association with magnetite iron formations, or in sheared and altered mafic volcanic rocks.

The immediate vicinity of the East Cadillac Property has been the focus of exploration activity since the mid-1940’s. Chimo GoldMine operated for nearly 15 years and produced in excess of 379,000 gold ounces until its closure in late 1996. The East Cadillac Gold Property hosts numerous catalogued gold occurrences, several with historic resources.

Mineral Resources

The Nordeau West deposit, 1500m east of the closed Chimo Mine, hosts a NI 43-101 Mineral Resource, the only current resource on the East Cadillac Gold project.

The 2017 Mineral Resource Estimate of Nordeau West, summarised in Table 1, is based on 121 drill-holes. Gold grades were determined using an inverse distanced-squared algorithm into a 3-D (Gemcom) block model with X-Y-Z (i.e. east-west, north-south, vertical) block dimensions of 5.0m x 2.5m x 5.0m. A cut-off grade of 2.75 gpt Au ($145/tonne production cost) was used in the calculations. An assumed gold price of US$1250/oz at an exchange rate of $CAD 1.31/$US 1.00 was selected for cut-off grade calculations.

Acquisition Terms

The East Cadillac Property comprises four earn-in agreements in addition to the ground wholly-owned by Chalice:

Nordeau Project (Globex): Chalice may acquire a 100% interest by making annual option payments totalling C$590,000 over four years to Globex (including an initial payment of C$120,000 in the first year) and undertaking exploration expenditures of C$2.5 million also over a four-year period. Upon exercising the option, Chalice will grant a 3% Gross Metal Royalty to Globex (there are currently no existing royalties in relation to the Nordeau Project and no government royalties). Chalice has the right to withdraw (with no minimum expenditure commitment) without earning an interest in the Nordeau Project at any time.

Chimo Project (Richmont): Chalice may acquire a 70% interest through total option payment of C$200,000 and incurring exploration expenditures of C$3.1M over four years.  Chalice shall grant Richmont a 1% Net Smelter Royalty to Richmont on claims with no existing royalty.

Forsan Gold Project (Khalkos Exploration): Chalice can earn a 70% interest in the Project by making total option payments of C$375,000 to Khalkos and funding exploration expenditures of C$1.75 million over a period of five years (Table 1). Upon meeting these requirements and exercising the option, Chalice shall then grant a 1% Net Smelter Royalty (“NSR”) to Khalkos on the claims on the basis that all royalties (including pre-existing royalties) do not exceed 3%. Chalice maintains a pre-emptive right over the Khalkos royalty.

Denain-Pershing Project (Renforth Resources): Chalice may earn an 80% interest in the Project by making total option payments of C$200,000 to Renforth and funding exploration expenditures of C$1.25 million over a period of three years. Upon completing all obligations Chalice shall revert to a 2% NSR upon either party diluting its Project interest to less than 10%, unless the aggregate royalties payable to any party in respect of a particular claim would exceed 3%, in which case the royalty rate will be reduced such that the maximum aggregate royalty is 3%. The Denain-Pershing claims have pre-existing NSR royalties of up to 2%.

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