Warrego North Project

The Opportunity

The Warrego North Project is located within a classic Iron Oxide Copper Gold (IOCG) district which has historically been exploited for high-grade gold and copper.

Chalice is earning 70% on part of the licences, and has applied for an additional 320km2 immediately NW of the Warrego Mine, the largest deposit mined in the area.

Follow up field work is scheduled to re-commence in the second-half of 2018, once the targeting phase is completed. For the latest information please refer to our ASX Announcements.

Figure 1. Warrego North Project location map, regional geology, historical drilling and identified magnetic bulls-eye Rooster Target.

Location

The Warrego North Project is strategically located in the endowed Tennant Creek Mineral Field in the Northern Territory of Australia (Figure 2).

Figure 2. The Warrego North Project (EL23764) is located in close proximity to several historically significant mining operations. 

Geology and Exploration

Warrego North lies on the western extension of the Warramunga Formation, a sequence of Palaeoproterozoic turbiditic sediments which host all of the ironstone copper-gold-bismuth deposits in the Tennant Creek Mineral Field.

The project has been subject to historical exploration programs including aeromagnetic, ground magnetics and down-hole magnetic surveys and ground gravity with follow-up shallow reconnaissance vacuum drilling and selected RC drilling. The region contains gold, copper, silver, cobalt and bismuth deposits.

Recent 3D IP data at the key Parakeet target has confirmed a chargeability-high typically associated with outcropping ironstones,which is a composite circular 1km x 1km magnetic anomaly with an associated gravity anomaly.

Aeromagnetic surveys have identified prominent magnetic anomalies over the western and eastern project areas.

Acquisition Terms

A farm-in agreement with Meteoric Resources Limited gives Chalice the right to earn up to a 70% interest in the Project by sole funding a total of $800,000 in exploration expenditure. Chalice may earn an initial 51% by sole funding $400,000. Chalice is required to drill at least one diamond drill hole of at least 300m within 12 months.

Related Documents