East Cadillac Gold Project
The East Cadillac Gold Project covers an area of 233km2 and is located ~35km east of the >20Moz Val-d’Or gold district in Quebec, Canada. The Project lies within the prolific Abitibi greenstone belt, a globally significant district with a known gold endowment of >210Moz.
Chalice’s land holdings encompass a strike length of 27km of the Larder Lake-Cadillac Fault, the most prolifically endowed gold trend in the southern Abitibi.
The Project is along strike from several major mines including Canadian Malartic (>16Moz Au Agnico Eagle and Yamana) and Sigma Lamaque (>11Moz Au Eldorado Gold). The Project surrounds the historical Chimo gold mine, owned by Cartier Resources (TSX: ECR – 17% owned by Agnico Eagle), which produced ~379koz @ 4.8g/t Au (Figure 1 and 2).
East Cadillac has all season access and world class infrastructure including road, rail and power. Quebec is a mining friendly jurisdiction with no state royalty and a 30% exploration rebate.
Figure 1. Location map of East Cadillac Gold Project in the Abitibi sub-Province of Canada.
Acquired in late 2016, the East Cadillac Gold Project is a consolidation of several earn-in option agreements (Chalice earning 80 to 100%) and Chalice’s 100%-owned claims.
Since acquiring the Project, Chalice has completed systematic geochemistry and geophysics field programmes as well as a ~27,600m regional diamond drilling programme targeting large-scale gold systems, with three new, wide-open mineralised trends discovered to date.
Chalice is currently conducting regional exploration on the Project, targeting large-scale (+5Moz), high-grade gold deposits.
Figure 1. The East Cadillac Gold Project is on strike with several significant gold mining operations.
An 8,100m reconnaissance diamond drilling programme commenced in January 2019. The programme is planned in two phases to test the Anderson and Legrand Targets, which represent newly identified large-scale, coincident MMI geochemical and 3D-IP anomalies located to the north and south of the Larder Lake – Cadillac Fault (LLCF), respectively.
Phase 1 drilling comprises 15 holes for 4,500m along three reconnaissance drill traverses to provide an initial test over core parts of the geochemical anomalies. Phase 2 comprises 12 holes for 3,600m along four stepout drill traverses to scope out potential strike and/or depth extensions to any promising zones of mineralisation visually identified in Phase 1 drilling (Figure 3).
Figure 3. Planned DDH collars over MMI gold-in-soil contours and regional 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. The Chimo Gold Mine 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.
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.
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%.