Chalice Gold Mines announced that it has further consolidated its highly prospective East Cadillac Gold Project in Abitibi gold belt of Canada after acquiring the remaining 30% stake in its joint venture property with Monarques Gold.
The Property represents an integral part of the overall East Cadillac Gold Project, as it covers a 16km strike along the highly prospective Larder Lake – Cadillac Fault, where recent drilling by Chalice has confirmed extensive gold mineralisation at the Simon West, Simon Far West and North Contact Prospects.
Under the original option and farm-in agreement, in March 2018 Chalice met its minimum exploration expenditure commitment of C$3.1 million, made total option payments of C$200,000 and granted a 1% Net Smelter Return (“NSR”) royalty to earn a 70% interest in the Property.
Chalice has since agreed to acquire the remaining 30% interest in the Property for 3 million fully-paid ordinary Chalice shares and by granting an additional NSR royalty to Monarques of 0.5-1.5% (0.5% on certain claims with pre-existing royalties and 1.5% on all other claims).
The Property now has combined NSR royalties of 2.5% on all claims with Chalice able to buy back 0.5% of the NSR royalty from Monarques for C$1.0 million at any time.
The acquisition further strengthens Chalice’s strategic position in the Abitibi Greenstone Belt and provides it with a large, contiguous 100%-owned tenement position in this world-class gold province.
Chalice is currently conducting an extensive field program over the Project, including extending soil and rock chip geochemistry, airborne magnetics and 3D-IP geophysics coverage. The program is progressing on time and on budget and is expected to be completed in October.
Based on the results of the current field program and the previous phase of reconnaissance drilling, the Company expects to have prioritised drill targets ready for the next phase of drilling to commence in the upcoming winter field season.
Source: Company Press Release