Chalice Gold Mines Ltd ready to farm into West Pilbara Gold Project
Date
9/21/2016 5:40:54 AM
(MENAFN- ProactiveInvestors - Australia)
Chalice Gold Mines Ltd (ASX:CHN, TSE:CXN) has entered into an agreement to farm-in to all minerals other than iron ore within Red Hill Iron Ltd";s (ASX:RHI) West Pilbara Gold Project.
Chalice may spend $1 million within two years to earn a 51% interest, at which point Red Hill has a one-off opportunity to contribute to its 49% pro rata interest.
If Red Hill elects not to contribute, Chalice may then spend another $2 million to earn a further 19% within no set time period, or withdraw and retain no interest.
The West Pilbara Gold Project, located 160 kilometres southwest of Karratha in Western Australia, covers 1,390 square kilometres.
The +3 million ounces gold Paulsen Gold Mine, which is owned and operated by Northern Star Resources Ltd (ASX:NST), is located 8 kilometres south-west of the southern extent of the project.
Exploration for gold and base metals across the West Pilbara Gold Project has been carried out since the 1980";s with the most recent work undertaken by Red Hill between 2006 and 2009.
At the Urandy Prospect, drilling has returned a best intercept of 9 metres at 4.52 g/t gold from 46 metres.
Chalice plans to commence an immediate review of all data and undertake a field review of the identified targets.
Mapping and drill programs will follow the review and the Urandy prospects will be prioritised for follow-up drilling. <
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