Chalice Gold Mines (ASX: CHN) is having quite a year, now announcing it may have a tier-one scale gold system in Victoria.
Following on the heels of its huge Julimar nickel-copper-platinum group elements (PGE) discovery near Perth, the company has now confirmed it has a large gold system found under cover in historical Victorian gold country.
Primary gold and favourable structural geology have been intersected at the Karri, Ironbark North and Ironbark South prospects.
These prospects lie within Chalice’s Pyramid Hill gold project north-west of the historic Bendigo goldfield.
A maiden 10-hole diamond drill program at the three prospects allowed for a wide-spaced drilling program to define the underlying geological and structural setting as the initial step in its under cover exploration.
All six holes at the Karri prospect intersected tightly folded, upright stratigraphy and primary gold mineralisation.
Chalice said several high-grade gold zones were intersected between 1m and 2m apart which the company considers promising given that it was a geological drill program.
The intercepts included 4m at 3.3 grams per tonne gold, 1m at 6.2g/t, 1m at 5.4g/t and 11.45m at 1.0g/t (including 2.55m at 2.3g/t).
“Results indicate that the Karri prospect has the potential for a tier-one scale gold system,” the company said.
Chalice sees hope for new viable gold deposits under cover
The next round of diamond drilling is expected to begin in the latter part of the present September quarter.
Chalice said it is continuing its “systematic approach” to exploring under cover for gold in Victoria –targeting Fosterville/Bendigo style gold discoveries.
Exploration will go on at Pyramid Hill in parallel with work at its Julimar nickel-copper-PGE project and looking for other possibilities in Western Australia for future minerals production.
Chalice staked the Pyramid Hill project in late 2017 and it now covers an area of 5,000 square kilometres of Victoria in the Bendigo region.
The acquisition was made in light of a 2006-2009 program out of the Victorian Government called “Gold Undercover”.
This reported an estimate of a potential 32 million ounces of gold lying undiscovered beneath the Murray Basin cover in the Bendigo zone.
Chalice noted that most of that covered area still remains sparsely explored.
“Given there is highly variable, shallow cover over a large portion of its project, the company believes that there is excellent potential for the discovery of new commercially viable gold deposits,” Chalice said today.