West Pilbara Gold Project

The Opportunity

The West Pilbara Gold Project Farm-in and Joint Venture with Red Hill Iron Limited (ASX: RHI) (“Red Hill”)  located in the highly prospective Ashburton Mineral Field in the Western Australia Pilbara region, which is significantly under-explored for gold and base metals.


The Project area, covering 1,390km² (Figure 1), is located approximately 160km south-southwest of Karratha, and extends almost continuously over a 90km strike length.  The project is located 8km from the +3Moz Paulsens gold deposit, operated by Northern Star Resources (ASX:NST) located 8km.

Figure 1. Location of West Pilbara Gold Project

Geology and Mineralisation

The Project lies in the north-western sector of the Ashburton Basin and is dominated by volcanic and sedimentary successions comprising the Lower Wyloo Group. The eastern extent of the Project area is coincident with the western margin of the Hamersley Basin.

The contact between the two basins is referred to as the Paraburdoo Hinge Zone, defined by major fault/shear structures, including the Nanjilgardy Shear, Urandy Shear and Bitherabooga Shear, creating a potentially fertile area for the development of gold deposits (Figure 2).

Figure 2.  Regional geological setting

Exploration for gold and base metals across the Project has been carried out in various periods since the 1980s, with the most recent work undertaken by Red Hill between 2006 and 2009..

Red Hill identified a number of targets, primarily Carlin-style and vein/shear-hosted gold mineralisation through regional soil sampling and RAB drill programs, many of which require further exploration.  Of the prospects identified, Derek’s Bore and Urandy are the most advanced, with Red Hill completing widely spaced follow-up RC drilling at both prospects.

Work Plan

Chalice plans to complete an analysis of all data and undertake field work on the identified targets including prospect-scale mapping and rock-chip sampling. Drill programs will follow the field mapping program..

Acquisition Terms

Chalice may earn up to 70% interest in the West Pilbara Gold Project by funding A$3 million worth of exploration with a minimum commitment of A$500,000 within the first 12 months. Chalice may spend an aggregate of A$1 million within the first two years (including the minimum commitment) to earn 51%, at which point Red Hill has a one-off election to contribute to its 49% pro rata interest. If Red Hill elects not to contribute, Chalice may then spend further A$2 million to earn a further 19% (taking Chalice’s total interest to 70%) within no set time period, or withdraw and retain no interest.