Introduction

The South West Project contains the Thor and Odin Prospects within its tenement package (256 km²) and is located ~240 km south of Perth, hosted within the Balingup Gneiss Complex. A joint venture between Teck Cominco and BHP Billiton, first identified this area as being prospective for base and precious metals hosted within the complex. The joint venture completed surface sampling and airborne EM surveys which culminated in the discovery of a base and precious metals deposit (Kingsley Prospect) which Teck identified as a meta-Volcanic Massive Sulfide (“VMS”) system in high grade metamorphic rocks. Venture’s nearby Thor prospect hosts a strong and coherent arsenic in laterite anomaly, with locally elevated levels of copper, zinc, tin, bismuth, tungsten and antimony, elements that are typically elevated in VMS systems.

Comparison of Chalice’s Julimar and Venture’s Thor magnetic signatures and EM anomalies

Thor Prospect

Following the discovery of the main Thor target, the Company successfully pushed the total combined strike to over 10 km of EM and geochemical targets. Venture then acquired the northern extension, so that Thor encompassed some 24-strike km of prospective geology which already hosts multiple VMS Style targets.

The Company then, through the initial drilling program, confirmed the presence of VMS style mineralisation and now has a 20 km VMS target zone at Thor (Refer Figure 7). Following on a new high- resolution airborne EM survey delivered priority VMS drill targets for testing within the original Thor area (Refer Figure 8). The second phase of drilling at the Thor Prospect intersected further massive sulfides with Copper and Zinc mineralisation.

Thor has seen only two single drill holes targeting two of the thirteen priority VMS drill targets delineated around the initial discovery area.

Odin Prospect

Initially was a newly discovered lithium target situated ~30 km south of Greenbushes, the world’s largest hard rock lithium mine (produces ≈40% of the world’s lithium and is owned 51% by Tianqi Lithium and 49% Albemarle). Odin was discovered following a detailed geological mapping and surface geochemical program, which identified a potentially lithium bearing pegmatite system.

Following two phases of surface exploration a lithium target was identified which extended over 1.9 km of strike and was up to 150m wide. The geochemistry in the laterite is analogous to Greenbushes with significantly elevated levels of tin, tantalum and niobium.

The first hole (ODD01) targeting potential lithium bearing pegmatites intersected disseminated Nickel- Copper sulfides within a mafic-ultramafic host unit, therefore realising the Company a new Nickel-Copper Target (Refer Figure 9). The nickel-copper target was identified by ODD01 intersecting a continuous 21 metre zone of minor disseminated Nickel-Copper sulfides hosted within a mafic-ultramafic gneiss. Venture’s surface sampling showed significant nickel and copper geochemical anomalies within the mafic-ultramafic target units to the south-west and south-east of the first hole.

Chalice’s Julimar and Venture’s South West JV Project locations over regional geology

Chalice Earn-in (Thor and Odin Prospects)

In July 2020, Chalice executed an option and earn-in agreement on the South West Project, as the project included a ‘Julimar lookalike’ Ni-Cu-PGE target: a ~20km long interpreted mafic-ultramafic complex with a strong magnetic signature and massive sulfide occurrence (the Thor Target). As the operator, Chalice may earn up to 70% by spending $3.7 million on exploration over 4 years.

Chalice completed a ground EM program, Auger Soil Geochemistry program and Maiden Drilling Program on the prospective Thor trend and met the expenditure requirement of $1.2 million within two years of signing the agreement to earn 51%. Chalice can earn a further 19% interest (for a total of 70%) through an additional $2.5 million of expenditure by July 2024. Once the second stage of the earn-in is completed Venture can then elect to either contribute 30% or dilute to a minimum of 10% JV interest, in which case the interest automatically reverts to a 1.25% NSR royalty.

After identifying two new Ni-Cu-PGE targets in 2022, Chalice committed to the second stage of the JV.

South West project Highlights

  • Thor has a 20km long ‘Julimar lookalike’ magnetic anomaly associated with chromium-rich rocks indicative of mafic-ultramafic intrusions;
  • An airborne EM survey in 2018, identified 13 targets in the southern 5 km of the Thor magnetic anomaly, the northern half of the survey was heavily disrupted by electrical infrastructure;
  • Maiden Drill Program at Thor intersected 2.4m of Massive Sulfide in TOR05 averaging 0.5% Cu, 0.05% Ni, 0.04% Co and anomalous Au & Pd;
  • Maiden Drill Hole at Odin intersecting Ni and Cu sulfides within a highly prospective mafic- ultramafic unit that extends over 10 strike kilometres. 

South West Project – Chalice’s Auger Surface Geochemistry Phase One and Two results on aeromagnetics over the Thor Target

South West Project – Chalice’s Auger Surface Geochemistry Phase One and Two results on airborne EM over the Thor Target

Odin Prospect – ‘books’ of muscovite indicating pegmatite occurrence

South West Project – Chalice’s Auger Surface Geochemistry Phase Two results on aeromagnetics over the Odin Ni-Cu-PGE Prospect

Exploration

Chalice received results in March 2023 from the completed Phase 2 Auger Soil Geochemistry program and has identified two more new Ni-Cu-PGE targets. It has also extended and better defined the previously identified new Ni-Cu-PGE targets at the South West Project.

One of the new targets is in the previously untested northern part of the Thor Target, while the other is in the eastern part of the South West Project, close to the Odin Ni-Cu-PGE prospect. The two new targets have been infilled and sampled with further Auger Soil Geochemistry.

The previously identified Ni-Cu-PGE targets from the Phase 1 soil program, are interpreted to be hosted in ultramafic rocks and contain coincident and untested AEM and magnetic anomalies. These targets had no conductors resolved from the recently completed Fixed Loop EM ground survey but have been extended and better defined by the Phase 2 soil program.

The South West Project is within the highly prospective West Yilgarn Ni-Cu-PGE Province discovered by Chalice that hosts their Julimar discovery. It is one of the largest greenfield Ni-Cu-PGE sulfide discoveries in recent history. The two main prospects within the Project are Thor and Odin which remain prospective for potential Ni-Cu-PGE mineralisation.