East Cadillac Gold Project
The East Cadillac Gold is located ~35km from the town of Val-d'Or in Quebec, Canada.
The Project 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.
The East Cadillac Gold Project covers an area of 245km2 and is located ~35km east of the >20Moz Val-d'Or gold camp in Quebec, Canada. With land-holdings encompassing a strike length of 27km of the Larder Lake-Cadillac Fault, the most prolifically, endowed gold trend in the southern Abitibi, the Project is situated amongst some of the region's most significant mines and surrounds the historical Chimo gold mine, owned by Cartier Resources (TSX:ECR) (Figure 1).
Figure 1. The East Cadillac Gold Project is on strike with several significant gold mining operations.
The East Cadillac Gold Project was acquired by Chalice in late 2016 and further consolidated with 14 earn-in option agreements (Chalice earning 70 to 100%) and 100%-owned claims.
Since acquiring the Project, Chalice has completed a 27,700m regional diamond drilling programme targeting large scale gold systems, with three new discoveries made to date. Recent soil sampling has identified the large Legrand and Anderson MMI soil anomalies, which are due to be drilled in early 2019 as part of the upcoming Winter program.
For the latest results refer to our ASX Announcements.
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. Chimo GoldMine 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 four 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.
Forsan Gold Project (Khalkos Exploration): Chalice can earn a 70% interest in the Project by making total option payments of C$375,000 to Khalkos and funding exploration expenditures of C$1.75 million over a period of five years (Table 1). Upon meeting these requirements and exercising the option, Chalice shall then grant a 1% Net Smelter Royalty (“NSR”) to Khalkos on the claims on the basis that all royalties (including pre-existing royalties) do not exceed 3%. Chalice maintains a pre-emptive right over the Khalkos royalty.
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%.