Chalice Gold Mines Limited (ASX: CHN | OTCQB: CGMLF) has announced the intersection of primary gold and favourable structural geology from its maiden diamond drill program at the Pyramid Hill Gold Project in Victoria.
The company reported that the maiden 10-hole diamond drill program was completed at the Karri, Ironbark North, and Ironbark South Prospects at the Pyramid Hill Gold Project, Victoria.
CHN said that wide-spaced geological drilling to define underlying geological and structural setting is a key initial step in Chalice’s systematic under cover exploration approach.
Chalice said that all six initial diamond drill holes at the Karri Prospect intersected tightly folded, upright stratigraphy and primary gold mineralisation. CHN reported that several strike extensive anticlinal structures were identified, which is the typical geological setting for high-grade gold deposits in the region. These have been identified as the targets for the next phase of drilling.
The company said that anomalous gold was intersected in all holes, confirming the presence of a large-scale primary gold system at depth below the >4km long gold trend.
CHN announced that several high-grade gold zones were intersected ~1-2km apart including 4m @ 3.3g/t Au including 1m @ 12.1g/t Au (PHD007); 1m @ 6.2g/t Au (PHD005); 1m @ 5.4g/t Au (PHD007); 1m @ 3.1g/t Au (PHD003); and 11.45m @ 1.0g/t Au including 2.55m @ 2.3g/t Au (PHD001 – reported previously).
The company said that the results indicate that the Karri Prospect has the potential for a tier-1 scale gold system.
CHN reported that the geological drill program has achieved its objectives and the next round of targeted diamond drilling is planned to commence in late Q3 2020.
Chalice said that it aims to be a key player in the Victorian Goldfields region with a 100%-owned, >5,000km2 land position and remains fully-funded with >$50 million in cash and investments.
Pyramid Hill gold project
Chalice’s 100%-owned Pyramid Hill Gold Project is a district scale holding comprising an extensive 5,190km² area located in northern Victoria, Australia.
The Project encapsulates approximately 60% of the northern Bendigo Zone, which is covered by variable Murray Basin cover, and is one of the most exciting, underexplored high-grade gold provinces worldwide.
The Project comprises three key districts centred around the northern Bendigo Zone: the Muckleford, Mt William, and Percydale areas.
Drilling at Pyramid Hill
The company had commenced a maiden 10-hole diamond drill program at Pyramid Hill project. CHN said that the program was designed as a first-pass geological assessment of three key under cover targets generated from the Company’s initial phases of shallow air-core (AC) drilling – Karri, Ironbark North, and Ironbark South. All three greenfield targets were generated by Chalice and are located under ~40-80m of Murray Basin cover.
Chalice reported that the geological logging and assay results have now been finalised for all 10 holes, confirming the presence of prospective structural settings for orogenic gold deposits. The company said that further exploration is planned. CHN said that in case of the Karri Prospect, the combination of tightly folded Castlemaine Group sediments, quartz veining, and a large-scale gold footprint with primary high-grade gold make it a compelling opportunity.
High-grade DD results from Karri Prospect
The company had commenced a wide-spaced, reconnaissance diamond holes (6 holes for ~2,000m) at Karri Prospect. The program was designed to assess the prospective structural setting at the Karri Prospect where AC drilling has defined a strong and extensive gold trend at the weathered top of the Castlemaine Group basement over >4km of strike length.
CHN said that all six drill holes intersected strongly anomalous primary gold mineralisation including several significant high-grade gold zones.
Significant high-grade gold zones include 4m @ 3.3g/t Au including 1m @ 12.1g/t Au (PHD007); 1m @ 6.2g/t Au (PHD005); 1m @ 5.4g/t Au (PHD007); 1m @ 3.1g/t Au (PHD003); and 11.45m @ 1.0g/t Au including 2.55m @ 2.3g/t Au (PHD001 – reported previously).
CHN said that the results indicate that the Karri Prospect has the potential for a tier-1 scale gold system.
The company said that the detailed geological and structural analysis of the diamond core has identified four discrete and tightly folded anticlines developed over a 1km width which have a gentle northerly plunge. The anticlinal folds have been confirmed along a ~2km strike length however, based on the >4km long gold trend in AC drilling, these fold hinges are expected to continue beyond the limits of drilling.
CHN noted that tightly folded / upright Castlemaine Group sediments with gently plunging anticlinal fold hinges are a characteristic feature of all large high-grade gold deposits in the Bendigo Zone.
The ‘Gold Undercover’ initiative by the Victorian Government in 2006-2009 had estimated a potential ~32Moz of undiscovered gold beneath Murray Basin cover in the Bendigo Zone
DD results from Ironbark North prospect
The company had commenced a maiden diamond drill program at the Ironbark North Prospect (2 holes for ~660m) and Ironbark South Prospect (2 holes for ~790m).
Ironbark North Prospect
CHN said that the program was designed to provide a first-pass geological assessment of the ~750m x ~600m northern diorite intrusion and in particular its margins with Castlemaine Group Sediments.
The company reported that new anomalous gold zones were intersected in close proximity to both the western and eastern contacts, with all significant gold intersections open along strike to the north and south.
Ironbark South Prospect
The company said that the maiden diamond drill program at the Ironbark South prospect was designed to provide a first-pass geological assessment of the ~600m x ~500m southern diorite intrusion, which was also confirmed as gold-bearing from previous shallow AC drilling.
CHN said that the drilling confirmed the presence of primary gold within quartz veining both in the diorite and the adjacent Castlemaine Group Sediments.
Chalice said that diamond drill hole PHD010 also intersected 0.6m @ 6.28g/t Au from 81.3m in transported cover, indicating a potential proximal primary gold source that requires further drilling.
The company reported that the ongoing and planned activities at Pyramid Hill include the following
Geological modelling – an initial structural and stratigraphic model for the Karri Prospect is currently being finalised utilising the results of diamond drill core logging and the Company’s recent 2D seismic survey.
Diamond drilling – Phase 2 diamond drill program at the Karri Prospect to commence in late Q3 2020.
Follow-up AC drilling – Phase 3 reconnaissance drill program is planned at the Ironbark Prospects to extend coverage between the diorite intrusions and to the south-west of the Ironbark South diorite, where anomalous primary gold remains open along strike. AC drilling is planned to commence in late Q3 2020.
Regional AC drilling – a regional reconnaissance AC drill program is planned at new targets within the Muckleford and Mt William Areas, on 3-5km spaced drill lines. This program will commence once AC drilling at Ironbark is completed.
The company reported that further reconnaissance diamond drilling is planned to further test the 4km AC gold trend and elevated primary gold mineralisation intersected to date at the Karri Prospect. CHN said that the coincident anticlinal fold axes and anomalous AC gold trends as defined on the Karri plan figures highlight targets for further drill testing. The company said that further reconnaissance AC drilling at several other target areas is also planned.
Chalice Gold Mines said that “Given there is highly variable, shallow cover over a large portion of the Project, the Company believes that there is excellent potential for the discovery of new commercially viable gold deposits.”