Chalice looks at second Canadian mine

PERTH (miningweekly.com) – Dual-listed gold miner Chalice Gold has entered into an option and farm-in term sheet to acquire a 70% interest in the Chimo gold project, in Quebec.

Under the terms of the agreement, Chalice could acquire the majority share in the project through total option payments of C$200 000 and incurring exploration expenditure of C$3.1-million over a four-year period.

On meeting these requirements, Chalice will grant owner Richmont Mines a 1% net smelter royalty on claims with no existing royalty.

The Chimo agreement follows on from an option and farm-in agreement with Globex Mining Enterprise over the Nordeau gold project.

The Chimo gold project comprises some 2 593 ha of claims in two main blocks along strike to the east and west of the former Chimo gold mine. The Chimo project, along with Chalice’s recently secured Nordeau gold project, and adjacent claims owned by Chalice, gave the company a significant contiguous land position along the Larder Lake-Cadillac fault, and a strategic foothold in the most prolific gold endowment trend in Canada.

Chalice MD Tim Goyder told shareholders on Wednesday that the agreement with Richmont gave the company a rare opportunity to consolidate a significant land-holding in a world-class gold district.

“Chalice has now been able to assemble what amounts to a significant strategic position covering a contiguous 16 km strike length of the major regional fault system that controls a majority of the known gold mineralisation in this region.

“By consolidating the Chimo and Nordeau projects, for the first time in decades, we will be able to apply a coordinated and systematic approach to exploration, bringing the latest techniques and methodologies to what is an underexplored area of the Larder Lake-Cadillac fault.”