Chalice Mining Limited ('Chalice' or 'the Company', ASX: CHN | OTCQB: CGMLF) is pleased to report its maiden Mineral Resource Estimate for the Gonneville Deposit, the first discovery at its 100%-owned Julimar Nickel-Copper-Platinum Group Element Project, located 70km north-east of Perth in Western Australia.
The Company has defined a tier-1 scale, pit-constrained maiden Resource for Gonneville on Chaliceowned farmland, which includes a mix of oxide, transitional and sulphide mineralisation. The sulphide mineralisation is reported at two different cut-off grades in order to highlight the scale and development optionality the Deposit affords.
The robust nature of the Resource is demonstrated by the relatively flat grade-tonnage curves, which highlight the significant quantity of sulphide mineralisation at higher cut-off grades. The significant high-grade component of the Resource provides excellent optionality for any future development, could potentially materially improve project economics in the initial years of operation and will be a key focus of the project Scoping Study, which is currently in progress. Note, the grade-tonnage curves for the Resource include material classified as Inferred, where data are insufficient to allow the geological grade and continuity to be confidently interpreted. Drilling is continuing at the 1.9km x 0.9km Deposit outside the maiden Resource, with assays pending for 160 drill holes and five rigs continuing to test for extensions of high-grade mineralisation.
Gonneville remains open at the Julimar State Forest boundary to the north, where approval to drill over a further 10km of strike length is anticipated to be received shortly. The Deposit also remains open beyond a depth of 630m. The completion of the maiden Resource is a significant milestone for the Julimar Project and provides a strong foundation for the ongoing Scoping Study, which is scoping the initial mine development options at Gonneville, and is expected to be completed in Q2 2022. Commenting on the maiden Resource, Chalice Managing Director & Chief Executive Officer, Alex Dorsch, said: 'This is a major milestone for Chalice, coming just 18 months after our stunning first hole discovery at Julimar. Since then, we have completed more than 175,000m of diamond and RC drilling and now defined a genuine tier-1 scale deposit of critical minerals, with exceptional growth potential
'The Resource confirms that Gonneville is the largest nickel sulphide discovery globally in over two decades, and the largest PGE discovery in Australia's history - a remarkable achievement considering that this is the first discovery in what we consider to be an entirely new district, Julimar, within a new nickel-copper-PGE province, the West Yilgarn. 'Given its sheer scale, the attractive suite of six payable metals it contains and its premier location close to world-class infrastructure and services in Perth, Chalice clearly has the potential to become a leading global player in the green metals space. 'The high-grade sulphide component of the maiden Resource is very important to the project, as it provides a degree of optionality for mine development that is not often seen in mining projects of this nature. The vast majority of competitor projects worldwide are narrow, highgrade underground deposits, whereas high-grade mineralisation at Gonneville starts near surface, which could be a material factor when considering project economics in the initial years of operation.
'It is also important to emphasise that the current Resource covers just 7% of the Julimar Intrusive Complex, which has been interpreted to cover a strike length of more than 26km. We know that the deposit remains open along strike to the north, and we are very much looking forward to receiving the final clearances to commence our initial low impact drilling program in the Julimar State Forest
'In the meantime, we are continuing to test the extent of the high-grade sulphide zones with step-out drilling down-plunge, and we continue to see strong potential for underground development in the longer term. The Scoping Study for Gonneville is progressing well and is on track to be completed in the second quarter of next year. 'We are continuing to consult closely with local communities as well as governments at both the State and Federal level, to ensure we build trust and secure our social licence to operate. We consider it very important that the broader project stakeholders understand the project and the immense opportunity in front of us.' Commenting on the Resource and current exploration activities at Julimar, Chalice General Manager - Development, Bruce Kendall, said: 'This is an exceptional result for a maiden Resource, with approximately 60% of the total sulphide tonnes in the top 250m already contained in the Indicated Resource category. This reflects the significant amount of infill drilling we have already undertaken at Gonneville and provides an outstanding base from which to complete the ongoing Scoping Study. 'The Resource pit shell is largely drill constrained at the southern end of the Deposit, where the highest grades occur, with few holes drilled thus far beneath the pit shell in this area. As our infill drilling has progressed it has shown that higher grade zones of mineralisation are more prevalent and more continuous than initial broad spaced drilling suggests. This is an important characteristic of the deposit which highlights the potential upside. 'Deep drilling targeting higher grade extensions and infilling drilling in the northern part of the Deposit, where most of the Inferred Resources are located, will be a focus in the coming months.
'Mineralisation is still open to the north within the Julimar State Forest, and we eagerly await the necessary approvals so that we can start drilling the Hartog target where soil sampling and moving loop EM has identified a number of compelling anomalies for drill testing. 'Despite the scale and significance of the maiden Gonneville Resource, we believe that the broader Julimar Project is still at a very early stage in its discovery history - and we are very excited about the discovery and growth opportunities within the extensive Julimar Complex.'
The 100%-owned Julimar Nickel-Copper-PGE Project is located 70km north-east of Perth in Western Australia. The greenfield Project was staked in early 2018 as part of Chalice's global search for highpotential nickel sulphide exploration opportunities.
Chalice interpreted the possible presence of an unrecognised, >26km long mafic-ultramafic layered intrusive complex at Julimar based on high-resolution regional magnetics (the Julimar Complex). An initial RC drill program commenced in Q1 2020 at the southern end of the Julimar Complex on private farmland (due to access constraints) and resulted in the discovery of high-grade PGE-nickel-coppercobalt-gold sulphide mineralisation near surface. The first hole discovery at the project was named Gonneville.
The discovery of Gonneville and the Julimar Complex established the newly defined West Yilgarn NiCu-PGE Province in Western Australia, an almost completely untested mineral province which is interpreted to extend for 1,200km along the western margin of the Yilgarn Craton. The Julimar Project is favourably located, with world-class road, rail, port and high-voltage power infrastructure nearby, plus access to a significant 'drive-in / drive-out' mining workforce in the Perth surrounds
Maiden Gonneville Resource overview
Chalice engaged CSA Global Pty Ltd (CSA Global), an ERM Group company, to prepare a mineral resource estimate (Resource) for Gonneville. CSA Global considers that data collection techniques are consistent with good industry practice and are suitable for use in the preparation of a Resource to be reported in accordance with the JORC Code. Available quality assurance and quality control (QA/QC) data supports the use of the input data provided by Chalice
Contact:
Alex Dorsch
Tel: +61 8 9322 3960
Email: info@chalicemining.com
Forward Looking Statements
This announcement may contain forward-looking information, including 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 report and Chalice Mining 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 impact of the discovery on the Julimar Project's capital payback; the Company's strategy; the estimated timing of drilling in the Julimar State Forest; the Company's intended activities at the Julimar Project and the success of future mining operations.
Such factors may include, among others, risks related to actual results of current or planned exploration activities; whether geophysical and geochemical anomalies are related to economic mineralisation or some other feature; obtaining appropriate access to undertake additional ground disturbing exploration work on EM anomalies located in the Julimar State Forrest; the results from testing EM anomalies; results of planned metallurgical test work Including results from other zones not tested yet, scaling up to commercial operations; changes in project parameters as plans continue to be refined; changes in exploration programs and budgets based upon the results of exploration, changes in commodity prices; economic conditions; grade or recovery rates; political and social risks, accidents, labour disputes and other risks of the mining industry; delays or difficulty in obtaining governmental approvals, necessary licences, permits or financing to undertake future mining development activities; changes to the regulatory framework within which Chalice operates or may in the future; movements in the share price of investments and the timing and proceeds realised on future disposals of investments, the impact of the COVID 19 pandemic 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 sedar.com, ASX at asx.com.au and OTC Markets at otcmarkets.com.
Mineral Resources Reporting Requirements
As an Australian Company with securities listed on the Australian Securities Exchange (ASX), Chalice is subject to Australian disclosure requirements and standards, including the requirements of the Corporations Act 2001 and the ASX. Investors should note that it is a requirement of the ASX listing rules that the reporting of mineral resources in Australia is in accordance with the JORC Code and that Chalice's mineral resource estimates comply with the JORC Code. The requirements of JORC Code differ in certain material respects from the disclosure requirements of United States securities laws. The terms used in this announcement are as defined in the JORC Code. The definitions of these terms differ from the definitions of such terms for purposes of the disclosure requirements in the United States. As a designated reporting issuer in the province of Ontario, Chalice is also subject to certain Canadian disclosure requirements and standards, including the requirements of NI 43-101.
The Julimar Project is a material mineral project for the purposes of NI43-101. The confidence categories assigned under the JORC Code were reconciled to the confidence categories in the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards - for Mineral Resources and Mineral Reserves May 2014. As the confidence category definitions are the same, no modifications to the confidence categories were required.
CHALICE MINING LIMITED 
