East Cadillac Gold Project

The Opportunity

The East Cadillac Gold Project represents the consolidation of two neighbouring properties in the world-class Larder Lake-Cadillac Fault trend in Quebec, Canada: (1) an option agreement with TSX-listed Globex Mining Enterprises (“Globex”) for the Nordeau project, and (2) an option agreement with TSX-listed Richmont Mining (“Richmont”) for the neighbouring Chimo gold exploration project.  In addition, Chalice is the 100%-owner of some neighbouring claims.

The Larder Lake-Cadillac Fault hosts approximately 100Moz of gold in past production and current resources (Figure 1). 

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

Location

The consolidated project area is located about 35km east of Val d’Or and comprises approximately 5,600Ha of claims located over about 16km of strike length of the Larder Lake-Cadillac fault (see Figure 2).  It is located adjacent to the former Chimo gold mine that operated over three periods from the 1960s through to 1997 to a depth of 870m below surface.

Figure 2.  Location map of the East Cadillac Gold Project (cross hatched are owned 60% by Globex) 

Geology and Exploration

Previous exploration of the Project area has located gold mineralisation along structural trends on, or parallel to, the main lithological contacts between mafic volcanics, mafic intrusives, iron formation and Timiskaming sedimentary rock sequences.  Exploration in the area during the 1940s led to the discovery of the Chimo mine, as well as the Nordeau West and Nordeau East deposits.  Additional exploration since then has identified targets to the west of the Chimo mine, including the Simon West target.

In 2009 Plato Gold Corp. published a NI 43-101 technical report and mineral resource estimate for Nordeau West, following drilling undertaken up to 2006-2007. The mineralisation remains open at depth.

The Nordeau East project contains a resource calculated in 1988, prior to JORC or NI 43-101, and Chalice has not verified this mineral resource.  Mineralisation at Nordeau East appears open at depth and Chalice intends to undertake a detailed review of the drilling results as a priority.

Work Plan

There has been limited modern exploration over the properties during the past several decades. Chalice will commence a review of historical exploration results and merge the two datasets from Nordeau and Chimo to allow an co-ordinated and integrated approach to exploration over the Company’s consolidated land position. 

Acquisition Terms

The East Cadillac Property comprises two 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.