Gnaweeda

Gnaweeda Project (Teck Cominco 79.74%, Chalice 20.26%)

Chalice has one joint venture funded project located in Western Australia, the Gnaweeda Project .

The Gnaweeda Gold Project tenure covers almost an entire Archaean greenstone belt in the northern Murchison Province of Western Australia, with proven gold mineralisation potential (Figure 1).   Turnberry, the most advanced gold prospect, has received limited deep RC and diamond drilling, which has intersected significant gold mineralisation in most of the holes. The mineralisation remains open at depth and laterally in every direction.

            Figure 1: Geology of the Gnaweeda Project in the northern Murchison Province

Teck Australia Pty Ltd (“Teck”) has entered into an exclusivity agreement with TSX Venture Exchange listed company Kent Exploration Inc. (“Kent”) which contemplates Kent earning 100% of Teck’s interest in the Gnaweeda Gold Project by spending $3 million, subject to Teck retaining a 75% claw-back.  Kent subsequently spun out the Gnaweeda Project into TSX-V listed Archean Star Resources ("Archean").

Archean has now completed two phases of diamond drilling at Gnaweeda for approximatley 2,850 metres.  The best results have been achieved from the Bunarra prospect which returned 18m grading 11.71 g/t AU (BN003) and 1m grading 7.30 g/t Au (BN008).

Under the terms of the Underlying Agreement between Teck and Chalice, as of February 2011 Chalice's interest in Gnaweeda has been diluted from 30% to 20.26%.  Chalice elected to not particpate in the funding for the 2010-2011 Joint Venture work program and has also elected to not participate in the 2011-2012 Joint Venture work program.

In May 2011 Archean announced that the next  work program will consist of a 6 hole diamond drill program at the St Anne's prospect and a 2D ground IP geophysical survey over the Bunarra and Turnberry zone.  The IP survey is to commence immediately, with drilling expected to commence upon completion and interpretation of the IP survey.

Competent Person Statements
The information contained on this website that relates to Exploration Results is based on information compiled by Dr Doug Jones, a full-time employee and Director of Chalice Gold Mines Limited, who is a Member of the Australasian Institute of Mining and Metallurgy and is a Chartered Professional Geologist. Dr Jones has sufficient experience in the field of activity being reported to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves (the JORC Code) and is a "Qualified Person" under National Instrument 43-101 - 'Standards of Disclosure for Mineral Projects‘. Dr Jones consents to the release of information in the form and context in which it appears here.