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Pyramid Hill Gold Project

Location Bendigo Region, Victoria, Australia
Development Stage Reconnaissance Exploration
Acquired Staked in 2017 and since expanded
Ownership 100%
Project Area >5,000km²

LOCATION

The 100%-owned Pyramid Hill Gold Project was staked in late 2017 and now covers an area of >5,000km2 in the Bendigo region of Victoria. The Project comprises three key districts within the Murray Basin covered North Bendigo Zone: Muckleford, Mt William and Percydale. 

The central Muckleford Area extends to the north-west of the high-grade historic >22Moz Bendigo Goldfield. The Mt William Area extends to the north-east of one of the world’s highest-grade producing gold mines, the >9Moz Fosterville Gold Mine owned by Kirkland Lake Gold (NYSE / TSX: KL | ASX: KLA).

THE OPPORTUNITY

The Bendigo Zone of Victoria has produced >60Moz of high-grade gold. The region has been mined since the mid nineteenth century, however is now capturing global attention once again, largely due to Kirkland Lake Gold’s new ultra high-grade discoveries at depth at Fosterville.

The ‘Gold Undercover1’ initiative by the Victorian Government in 2006-2009 estimated a potential ~32Moz (P50 mid-case) of undiscovered gold beneath Murray Basin cover in the Bendigo Zone. However, the vast majority of the covered area remains sparsely explored. Given there is highly variable, shallow cover over a large portion of the Project, the Company believes that there is excellent potential for the discovery of new commercially viable gold deposits.

Chalice is targeting tier-1 scale (>US$1bn NPV), high-grade gold discoveries and is currently conducting a systematic, regional-scale greenfield exploration program. The Company is utilising all available targeting tools at its disposal, including the substantial pre-existing regional geophysics database (including crustal scale 2D seismic), regional-scale soil sampling and ground geophysics. 

EXPLORATION

Chalice commenced its regional scale greenfields exploration program in mid 2018. Low-cost reconnaissance air-core (AC) drilling to the top of the target basement on wide-spaced lines has been used effectively to narrow the target search space over the very large Project area. Over 700 AC holes have been completed by Chalice to date, identifying the Karri and Ironbark Prospects as well as several other secondary targets. 
The Company’s first phase of geological diamond drilling (10 holes for ~3,500m) was completed in H1 2020, which confirmed prospective geology and fertile gold systems at each of the Karri, Ironbark North and Ironbark South Prospects. 

All six initial diamond drill holes at the Karri Prospect intersected tightly folded, upright stratigraphy and primary gold mineralisation, indicating that the Karri Prospect has the potential for a tier-1 scale gold system.

For further information including the latest results please click on the following ASX Announcements :
 

 

For the latest information please refer to our Investor Presentation and ASX Announcements.

For information on Chalice's activities within the local area, please refer to our Fact Sheets on the Community - Victoria page.  

FORWARD PLAN

Chalice is continuing its systematic approach to gold exploration under cover in central Victoria, targeting Fosterville / Bendigo style gold discoveries. Exploration continues at Pyramid Hill in parallel with ongoing exploration programs at the Julimar Nickel-Copper-PGE Project and generative projects in Western Australia.  

The geological drill program has achieved its objectives and the next round of targeted diamond drilling is planned to commence in late Q3 2020.   

REGIONAL GEOLOGY AND MINERALISATION

The Bendigo Zone is located within the Lachlan Fold Belt, one of the major components of the Tasman Fold Belt System. Geologically, the Bendigo Zone is located between the Avoca and Mount William Faults which separates the Stawell Zone to the West and the Melbourne Zone to the East and is largely composed of turbiditic sediments (typically sandstones and shales) of the Castlemaine Group which is host the majority of gold deposits. 

The Stawell and Bendigo Zones were deformed during the Benambran Orogeny, a lengthy interval spanning the Late Ordovician (c.460-444Ma) and Silurian (c.444-419Ma). The Melbourne Zone by contrast escaped this Ordovician-Silurian deformation and continued to receive sediment until it was eventually deformed during the Middle-Devonian (c.380-370Ma) during the Tabberabberan Orogeny. 

The structural style across the Bendigo Zone is relatively uniform, controlled by relatively simple east-west oriented compression and characterised by simple, upright, tight chevron folding. Widespread post-tectonic plutonism occurred during the Early Devonian (c.410-400Ma) which played only a very minor role in deformation across the region and is not associated with any significant gold events.  

Orogenic gold deposits within the Bendigo Zone are diverse and often complex but share similar origins and geological characteristics. Mineralisation was episodic during the Ordovician-Silurian periods (460-420Ma) driven by crustal heating during the Benambran Orogeny, from the beginning of fold development to late stage tectonic faulting. 

The surface footprints of major gold deposits in the district are commonly narrow but strike extensive and can occur over multiple kilometres. Typically, major deposits are located within the hanging walls of, but distal to, major crustal scale structures which are themselves not mineralised. These regional structures have been interpreted from 2D seismic surveying completed by Geoscience Australia and provide an important structural framework for exploration activities.

At the deposit scale, high-angle secondary reverse faults and dilational cross structures served as conduits for the mineralising fluids. In addition to the fault-controlled mineralisation, where accommodation occurs at the apexes of tight fold hinges, mineralisation can occur as stacked ‘saddle’ or ‘trough’ reefs as commonly seen within the Bendigo area. 

ACQUISITION TERMS

The Pyramid Hill Gold Project was staked in late 2017 and is 100% owned.

1) Lisitsin, V., Olshina, A., Moore, D.H. & Willman, C.E., 2007. Assessment of undiscovered mesozonal orogenic gold endowment under cover in the northern part of the Bendigo Zone. GeoScience Victoria Gold Undercover Report 2, Department of primary Industries.

iAdapted from Arne, D.C., House, E. & Lisitsin, V., 2008. Lithogeochemical haloes surrounding central Victorian gold deposits: Part 1 – Primary alteration systems, Gold Undercover Report 4. Department of Primary Industries, Victoria.