2011 BMO Global Metals & Mining Conference

Transcription

1 Eit Eritrea s Next tgold ldminer 2011 BMO Global Metals & Mining Conference

2 Disclaimer and Competent Persons Statement This presentation may contain value references and "forward looking statements which are subject to various risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implied by such statements. Investors are cautioned that such statements are not guarantees of future performance and results. This presentation does not include all available Information on Chalice Gold Mines Limited and should not be used in isolation as a guide to investing in the Company. Any potential investor should also refer to Chalice Gold Mines Limited Annual Reports and to ASX releases and take independent professional advice before considering investing in the Company. For further information about Chalice Gold Mines Limited, visit the website at The information in this report that relates to Exploration Results is based on information compiled by Dr Doug Jones, a full time employee and Director of Chalice Gold Mines Limited, who is a Member of the Australasian Institute of Mining and Metallurgy and is a Chartered Professional Geologist. Dr Jones has sufficient experience in the field of activity being reported to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves, and consents to the release of information in the form and context in which it appears here. The Mineral Resource estimate was prepared by Mr. John Tyrrell who is a Member of the Australasian Institute of Mining and Metallurgy. Mr. Tyrrell is a full time employee of AMC and has sufficient experience in gold resource estimation to act as Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code)'. Mr. Tyrrell consents to the inclusion of this information i in the form and context in which h it appears. The information in this statement of Ore Reserves is based on information compiled by Mr David Lee who is a Member of the Australasian Institute of Mining and Metallurgy and a full time employee of AMC. Mr Lee has sufficient relevant experience to be a Competent Person as defined in the JORCCode. Code. MrLee consents to the inclusion of this information in the form and context in which it appears. 2

3 Corporate Snapshot and Capability ASX: CHN; TSX: CXN Capital Structure Share price A$0.60 Shares on issue 212 million Marketcapitalisation ~A$128 million Options on issue 12.6 million Debt Cash ~A$5m Board Tim Goyder Dr Doug Jones Mike Griffiths Executive Chairman Managing Director Executive Director Anthony Kiernan Non Executive Substantial Shareholders Franklin Resources 14.8% Directors & Management 12.8% Lujeta Pty Ltd 7.4% Acorn Capital 4.7% Stephen Quin Non Executive City Securities 30% 3.0% 3

4 Analysts Covering the Chalice Story Australia Southern Cross Equities Peter Chapman E: T: Paterson Securities Limited Simon Tonkin E: T: Argonaut Limited Troy Irvin E: T: North America Haywood Securities Limited E: T: +1 (604) Stifel Nicolaus E: T: E: T: E: T: Europe Ambrian Partners Limited E: T: +44 (20)

5 Project Snapshot Chalice is a gold development company in the highly prospective and underexplored darabian Nubian Shield of Eritrea Chalice is developing the high grade, low cost Zara Project Feasibility completed, permitting underway Open pit 760,000oz Ore 5.1g/t Au Average annual production of 104,000oz over 7 year mine life US$338/oz cash operating costs Significant exploration upside 1437 km 2 of granted tdtenementst 18,740 km 2 of regional tenement applications Major exploration program underway 5

6 The Opportunity by cash cost Cash Costs Grade (g/t) Reserve e Grade (g/t t) Cash Costs ( US$/oz) Teranga Avocet Cluff Noble Adamus Centamin SEMAFO Perseus Banro Chalice 200 6

7 Comparative Market Valuation 800 1, EV / Res serve (A$/oz z) Banro Chalice Centamin Perseus Noble Adamus Teranga Avocet Cluff SEMAFO *Avocet multiples have been adjusted on a pre tax basis for the sale of its South East Asian assets. 7

8 The Arabian Nubian Shield Centamin Sukari Equinox Jabal Sayid 15 year 500 koz pa Au 10 year 61 kt pa Cu La Mancha Hassai Chalice Zara 6 year 156 koz pa + VMS Nevsun Bisha Sunridge Asmara 7 year 104 koz pa Au >10 year Au, Ag, Cu, Zn 5 year Cu Zn Ag Au The Zara Project is located within southern Arabian Nubian Shield Current resources +20Moz gold Over 1,000 recorded ancient copper and gold mines Minimal modern exploration World class projects now being developed 8

9 Significant Ground Position 9

10 The Mine Site Zara Valley Vll Exploration Camp Exploration drilling at Koka Deposit 10

11 Koka Gold Deposit Indicated Resource of contained gold 840,000 Oz Probable Reserve of contained gold 760,000 Oz *Both based on 1.2 g/t cut off 11

12 Koka Outstanding Returns (koz) Production Production Cash costs Cash Costs (U US$/oz) Flow (US$m) Cash Distributions Cash flow to equity Equity contributions US$1300 gold price 100% project case, funded by 100% equity Capex US$122M, after tax cash flow generation US$477M 12

13 Koka Development Schedule Calendar Year Quarter Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Maiden Reserve Feasibility Study Release COMPLETED TSX listing Zara Permitting Funding Period Construction Pre Strip First Production 13

14 Exploration Potential Zara North BLEG & 80# gold anomalies Rock chips to 27.5 g/t Au Koka 840,000 oz Resource Konate Intersections to 22.3g/t 3D IP Survey & Soil Sampling 2 km 14

15 Koka 3D IP Near Mine Targets KOKA W KOKA EAST DEBRA KONATE m 15 ANOMALY D E

16 Koka 3D IP High Priority Target D W Surface Au Anomaly >100ppb 100ppb E Planned Drillholes 200m Chargeable Body sulphides? Resistive Body silicification? Chargeable Body sediments? m

17 Zara North Gold Anomaly is the big one here? Extensive gold anomalism over 10km strike length High tenor gold values of up to 876ppb gold in stream sediment samples Regional scale high strain zone with intense carbonate sericite alteration and quartz veining Artisanal workings up to 27.5 g/t in rock chips Detailed mapping and soil sampling underway to define drill targets mid

18 Zara North Gold Anomaly Artisanal Workings Altered quartz-veined shear zone with artisanal workings 18

19 New Data Aeromagnetics & Radiometrics 19

20 Hurum Exploration Licence A ti Artisanal l Workings 20

21 Mogoraib North Next door to Bisha Mogoraib North Exploration Licence located ~10 km north of the world class Bisha VHMS Project Area 555 sq km Geological setting similar to Bisha Regional Landsat interpretation reveals similar spectral signatures to Bisha Widespread shallow alluvial cover VTEM survey to commence March 2011 ~4000 line kilometres 21

22 Exploration Timeline Exploration program to generate strong news flow Exploration program totaling ~$10M expected Calendar Year 2011 Quarter Q1 Q2 Q3 Q4 Induced Polarisation (IP) Survey Aero Magnetics & Radiometrics VTEM Geochemical Sampling & Geological Mapping Drilling Koka IP targets Drilling Zara North Drilling Zara South 22

23 Corporate Contact Details Tim Goyder Executive Chairman M: Dr Douglas Jones Managing Director M: Joanne Jobin Investor Relations Manager North America M: Chalice Gold Mines Limited Level 2, 1292 Hay Street, West Perth, Western Australia 6005 GPO Box 2890, Perth, Western Australia 6001 T: F: E: W: 23