Chalice Gold Mines Limited - Newly defined large-scale gold anomalies prioritised for drill testing at East Cadillac Gold Project, Quebec

Regional geochemistry defines new large-scale gold-in-soil anomalies for drilling in early 2019


  • Several extensive and coherent MMI (mobile metal ion) gold-in-soil anomalies defined in new geochemistry results on 100%-owned areas at the East Cadillac Gold Project in Quebec, Canada:
    • Legrand soil anomaly covers an area of ~3.4km x 1.3km, with a peak gold value of up to 22 times background. The anomaly has a similar pathfinder response and lies in a similar structural setting to Canadian Malartic (located ~70km to the west);
    • Anderson soil anomaly covers an area of ~2.3km x 0.5km, with a peak gold value of up to 22 times background, located on a regional structure that hosts several large gold deposits to the west.
  • The Legrand and Anderson anomalies represent the largest and most coherent anomalies found to date at the East Cadillac Project, and are entirely untested by drilling.
  • The new high-priority targets are to be drill tested in the upcoming winter drill season, due to commence in January 2019.

PERTH, Western Australia, Oct. 25, 2018 /CNW/ - Chalice Gold Mines Limited (TSX:CXN) (ASX:CHN)  is pleased to announce that it has defined several new, high priority, large scale, gold-in-soil anomalies at its East Cadillac Gold Project in Quebec, Canada, based on extensive surface geochemistry programs completed during the 2018 summer field season.  The newly defined anomalies represent priority drill targets.

The recent soil, rock chip and geophysical programs were designed to expand regional data coverage and define new regional drill targets for the upcoming winter drilling season. The program builds on previous regional work, completed by Chalice in 2017, which included reconnaissance soil, rock chip and bark geochemistry as well as LiDAR, Aeromagnetic and 3D-IP geophysical surveys.

The results of the previous phase of work were used to design and execute the ~28,700m reconnaissance diamond drilling program completed in Q2 2018. This drill program identified two significant new zones of mineralisation at the Lac Rapides and North Contact Prospects and confirmed the potential for large-scale gold systems on the district-scale East Cadillac Project.

Chalice's Chief Executive Officer Alex Dorsch said: "The latest results confirm that East Cadillac is highly prospective for large-scale gold systems, and that the exploration toolkit we are applying gives us the best chance of vectoring towards a substantial discovery. This potential is further underlined by the prospective geological setting of the Project in the prolific Val-d'Or district, and its location along strike from several multi-million ounce gold deposits and mines.

"Since acquiring and consolidating the Project, we have systematically explored the area and made substantial progress in a relatively short period of time. We are very excited about the upcoming drilling program and we look forward to receiving results as our exploration activities ramp-up."

Surface Geochemistry and Geological Mapping Programme

The surface geochemical and geological mapping programs were completed during June-September 2018.  A total of 1,504 mobile metal ion (MMI) soil samples were collected from both newly optioned/acquired claims and in-fill samples were collected over target areas defined from the wide-spaced 2017 soil sampling program.

The MMI soil sampling results have identified four new significant gold and pathfinder soil anomalies in areas subject to limited or no previous drilling (Figure 1).

Table 1 below summarises the main attributes of the geochemical anomalies. Importantly, the MMI gold anomalies are mostly associated with gold pathfinder elements, providing more evidence that the anomalies are related to bedrock gold mineralisation.

Table 1.  MMI soil anomaly properties


Approx. Length at 4RR
contour (km)

Approx. Width
at 4RR contour

Peak MMI Gold
Value (Response




Up to 1.3


As, Bi, W



Up to 0.5


Minor Ag, Bi



Up to 0.7


As, Sb, Ag


Up to 1.5

Up to 0.3


W, Ag, Cu


The Legrand gold-in-soil anomaly is coherent and covers a large surface area within a 5km x 4km area of anomalous arsenic and tungsten with minor bismuth. No bedrock geology outcrops were recognised in this area although aeromagnetic interpretation suggests that the Legrand anomaly overlies Pontiac Sediments which also host significant gold deposits elsewhere in the region including the Canadian Malartic gold deposit (endowment of >16Moz Au, not owned by Chalice), located approximately 70km to the WNW (Figure 2).

The Legrand anomaly overlies a zone of interpreted complex structure in an area of folded sedimentary rocks transected by thrust faults and intruded by felsic dykes, all of which suggests a favourable setting for orogenic gold mineralisation. In addition, the distribution of anomalous pathfinder metals in soils has a similar pattern of the metal zonation documented for the Canadian Malartic gold deposit which displays a zonation from proximal Au-W to distal Cs-Li-Tl. The Legrand anomaly has not been previously drill tested and is to be prioritised for drilling in the upcoming winter program.

The Anderson anomaly is a strong coherent gold-in-soil anomaly defined over a strike length of 2.3km and located about 2.5km north of the Larder Lake-Cadillac fault zone (LLCFZ). The east-west orientation is similar to other sub-parallel structures that host the Forsan gold deposit and other gold occurrences in the northern mafic succession. The anomaly is also to be prioritised for drill testing.

Rock chip sampling conducted during the 2018 field season has identified a 1.2km long zone of anomalous gold mineralisation, with assays up to 39g/t Au, located between 1-2.5km east of the recent Lac Rapides gold discovery. Gold mineralisation is associated with pyrite and/or arsenopyrite alteration in and around quartz veins in Banded Iron Formation. Limited historic drilling in this area has not intersected significant gold mineralisation however, given the strong association of gold with sulphide mineralisation, it is likely that the planned 3D-IP survey will allow a better definition of potential targets for testing.

Sampling techniques

Mobile Metal Ion Soil and QAQC Samples
Chalice sampling consists of 1504 mobile metal ion (MMI) soil and QAQC samples. Soil samples were collected from between 10 to 30 cm below surface. For every 20 samples collected a sand blank and field duplicate are inserted with all batches dispatched to the laboratory. Results are reported for all 1504 MMI soil samples.

MMI soil samples are processed as received. MMI soil samples are analysed by SGS Laboratories in Burnaby, British Columbia, Canada using laboratory technique GE_MMI_M which is a proprietary partial leach analysis.

Rock chip and QAQC Samples
Sampling includes 157 rock chip and QAQC samples. Samples collected from available outcrops which occur sporadically in the areas traversed. For every 20 samples collected a certified standard and blank are inserted with all batches sent to the laboratory. 

Rock chip samples are dried and crushed to 70% passing 2mm, then riffle split to a 250gm which is pulverized to better than 85% passing 75 microns. Samples are analysed by ALS Laboratories in Val-d'Or, Quebec, Canada using laboratory techniques ME-MS61, Au-AA23, and Au-GRA21.

Geophysical Surveys

New aeromagnetic and LiDAR geophysical surveys were completed in June-August 2018 on newly acquired tenure to expand existing LiDAR and helicopter-based aeromagnetic coverage to the north and west of the main Larder Lake – Cadillac Fault (Figure 3). In conjunction with field geological mapping, these surveys have improved the Company's geological understanding of the known gold occurrences throughout the project area.

Proposed Future Work

A 3D-IP OreVision survey commenced in early October to extend existing coverage along the Larder Lake-Cadillac Fault for an additional ~7km east of the 2017 survey area (which covered ~16km of strike). The grid is also being extended to the south to cover the new Legrand anomaly to the south-east of Lac Rapides. Survey results are expected by the end of December.

The recently received results are being incorporated with the previously acquired data to design a diamond drill program planned for the upcoming winter drill season, to commence in January 2019. The program will be designed to test the new surface anomalies as well as testing several zones along strike from existing mineralisation. Existing targets will be refined and additional drill targets may be added to the program once the 3D-IP survey results are finalised in late December.

Alex Dorsch
Chief Executive Officer

JORC Tables

Refer to the ASX announcement entitled "Newly defined large-scale gold anomalies prioritised for drill testing at East Cadillac Gold Project, Quebec", released on October 25, 2018 for JORC tables. This announcement is available to view on the Company's website at

About the East Cadillac Gold Project, Quebec, 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 along strike with globally significant mines) including Canadian Malartic (endowment of >16Moz) and Sigma Lamaque (endowment of >11Moz) (both not owned by Chalice).

The Project surrounds the historical Chimo gold mine, owned by Cartier Resources (TSX: ECR), which produced ~379koz @ 4.8g/t Au. The Project is a consolidation of several earn-in option agreements (Chalice earning 70 to 100%) and Chalice's 100%-owned claims (refer to figure 4).

Qualifying Persons Statement

The information in this report that relates to Exploration Results in relation to the East Cadillac Project is based on information compiled by Dr. Kevin Frost BSc (Hons), PhD, a Competent Person and Qualifying Person, who is a Member of the Australian Institute of Geoscientists. Dr. Frost is a full-time employee of the company and has sufficient experience that is relevant to the activity being undertaken to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves, and is a Qualified Person under National Instrument 43-101 – 'Standards of Disclosure for Mineral Projects'. The Qualified Person has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in this release. Dr. Frost consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

Forward Looking Statements

This document may contain forward-looking information within the meaning of Canadian securities legislation and forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, forward-looking statements).  These forward-looking statements are made as of the date of this document and Chalice Gold Mines Limited (the Company) does not intend, and does not assume any obligation, to update these forward-looking statements.

Forward-looking statements relate to future events or future performance and reflect Company management's expectations or beliefs regarding future events and include, but are not limited to, the estimation of mineral reserve and mineral resources, the realisation of mineral reserve estimates, the likelihood of exploration success at the Company's projects, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage.

In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "is to be", "will", "may", "would", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "believes" or variations of such words and phrases or statements that certain actions, events or results may, could, would, might or will be taken, occur or be achieved or the negative of these terms or comparable terminology.  By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

Such factors may include, among others, risks related to actual results of current or planned exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in mineral resources or ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements, all of which are filed and available for review on SEDAR at

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements

SOURCE Chalice Gold Mines Limited

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