The previous option agreement with the vendor included an exercise price of C$3,500,000 (exercisable on or before 30 April 2017) plus a 2.5% Net Smelter Royalty. The Dubenski deposit contains an Indicated Resource of 806,000 tonnes at 2.28 g/t for 59,000 ounces and an Inferred Resource of 392,000 tonnes at 1.44 g/t for 18,200 ounces at a cut-off grade of 1g/t to a depth of 150m below surface.
Dubenski is located on Chalice’s West Cedartree Project, less than 10km to the west of the Cameron Gold deposit and provides an important additional potentially open pittable source of material to the existing Resources at the Cameron Project.
Key Acquisition Terms
The key terms and conditions of the Acquisition include:
• A consideration payment of C$700,000; and
• An additional payment on all gold production mined in excess of 70,000 ounces (being US$13 per ounce where the gold price is less than or equal to US$1,500 per ounce and US$16 per ounce where the Gold price is greater than US$1,500 per ounce).
The transaction is conditional upon any approvals and consents that may be necessary under the legal and regulatory regime to which the Dubenski Gold Deposit is subject.
Dubenski Project Background
The Dubenski Project consists of two contiguous mining leases covering 377 ha within the West Cedartree Project.
Gold mineralisation at Dubenski is hosted by a sub-vertical shear zone over a strike of 400m that is up to 20m wide and has been delineated to a vertical depth of more than 150m. The mineralisation consists of fine-grained pyrite and free gold associated with carbonate, sericite, silica and locally, fuchsite alteration within strongly-deformed mafic volcanic rocks. The mineralisation is open in all directions.
Chalice’s Managing Director Bill Bent said, "We are very pleased to have renegotiated the acquisition of the Dubenski deposit on favourable terms. Dubenski will make an important contribution to our goal of continuing to grow and enhance the Cameron Gold Project by securing additional high-grade ounces in the region both through exploration success and acquisition."
