The Company is mobilising two additional diamond rigs to site, increasing the total number of rigs operating on the Project to four. The previously announced 7,700m diamond drill program will be completed in January, with the two currently operating rigs scheduled to move on to testing the new targets. The additional two rigs will commence drilling the new targets this week.

Target selection

After reviewing the results from the recently completed project-wide surface geochemical sampling consisting of MMI soil, Black Spruce bark and rock-chip sampling and following the completion of geophysical surveys including 3D IP and aeromagnetic surveys, Chalice has identified a number of high-priority targets.

Selection process

MMI soil sampling identified numerous gold and pathfinder anomalies associated with and along strike from known gold deposits and occurrences on the Larder Lake – Cadillac fault, as well as volcanic-sediment contacts to the immediate north and within the sediment sequence to the south.

The 3D IP survey highlighted a series of strong chargeability anomalies, some associated with known gold mineralisation within the Piche Group Volcanics, and other chargeability anomalies which are broadly aligned with contacts between the mafic and sediment packages.

Based on the results of these programs, the targets have been grouped into three areas:

  • Larder Lake – Cadillac Fault corridor (the central mineralised trend). Targets in this area are considered lower risk with portions of the trend already assessed, and the focus of drilling will be on testing areas down-plunge of existing showings and untested anomalies.
  • Hanging wall targets located north of the trend which are poorly tested to date – a similar area in the Val-d'Or district has delivered deposits such as Sigma Lamaque (~9Moz of historical gold production).
  • Footwall targets to the south which are almost entirely untested – a similar area in the Malartic district has delivered deposits such as Canadian Malartic (total reserves and resources of >10Moz Au), however current data is widely spaced (400m) except for immediate area around the Marilynne showing.

Program budget and timeline

The new drilling program will continue through March 2018. The Company will utilise four rigs to complete the program during the optimal conditions of the winter field season.

An additional all-inclusive budget of C$5,310,000 has been approved to complete the program.

Kinebik drilling program

The Company is pleased to also announce that the maiden drilling program at the Kinebik Gold Project (refer to ASX announcement on 4 July 2017) has also recently commenced. The program of 9 diamond drill holes for 1,800m will be completed with an additional (5th) diamond drill rig. The program is expected to take approximately one month to complete.

Chalice's Managing Director Tim Goyder said: "Our decision to significantly expand and extend the drilling program at East Cadillac reflects our excitement about the potential of the project and our commitment to aggressively explore this highly-endowed region. The aim of the program is to continue building a high-grade resource base in the most efficient manner, leveraging our strong financial position and technical expertise.

This is a unique opportunity for shareholders to be exposed to an exploration campaign of this size, within a highly endowed gold district, which should generate strong and consistent news-flow over the coming weeks and months."