21
Mines & Money 29 November 2010 29 November 2010 www.chalicegold.com For personal use only
Mines & Money29 November 201029 November 2010
www.chalicegold.com
For
per
sona
l use
onl
y
Disclaimer and Competent Persons StatementDisclaimer and Competent Persons Statement
This presentation may contain value references and "forward looking statements“ which are subject to various risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implied by such statements. Investors are cautioned that such statements are not guarantees of future performance and results.
This presentation does not include all available Information on Chalice Gold Mines Limited and should not be used in isolation as a guide to investing in the Company. Any potential investor should also refer to Chalice Gold Mines Limited Annual Reports and to ASX releases and take independent professional advice before considering investing in the Company.
For further information about Chalice Gold Mines Limited, visit the website at www.chalicegold.com
The information in this report that relates to Exploration Results is based on information compiled by Dr Doug Jones, a full time employee and Director of Chalice Gold Mines Limited who is a Member of the Australasian Institute of Miningfull‐time employee and Director of Chalice Gold Mines Limited, who is a Member of the Australasian Institute of Mining and Metallurgy and is a Chartered Professional Geologist. Dr Jones has sufficient experience in the field of activity being reported to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves, and consents to the release of information in the form and context in which it appears here.
The Mineral Resource estimate was prepared by Mr. John Tyrrell who is a Member of the Australasian Institute of Mining and Metallurgy. Mr. Tyrrell is a full time employee of AMC and has sufficient experience in gold resource estimation to act as Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code)'. Mr. Tyrrell consents to the inclusion of this i f i i h f d i hi h iinformation in the form and context in which it appears.
The information in this statement of Ore Reserves is based on information compiled by Mr David Lee who is a Member of the Australasian Institute of Mining and Metallurgy and a full time employee of AMC. Mr Lee has sufficient relevant experience to be a Competent Person as defined in the JORC Code. Mr Lee consents to the inclusion of this informationexperience to be a Competent Person as defined in the JORC Code. Mr Lee consents to the inclusion of this information in the form and context in which it appears.
1
For
per
sona
l use
onl
y
Corporate Snapshot and CapabilityCorporate Snapshot and Capability
Capital Structure ASX: CHN; TSX: CXN
Share price A$0.62
Shares on issue 211 million
Market capitalisation ~A$130 millionMarket capitalisation A$130 million
Options on issue 13.1 million
Debt ‐
Cash A$14m
Board Substantial Shareholders
Cash A$14m
Tim Goyder Executive Chairman
Dr Doug Jones Managing Director
Franklin Resources 14.8%
Tim Goyder 11.9%
Mike Griffiths Executive Director
Anthony Kiernan Non‐Executive
Lujeta Pty Ltd 6.8%
Stephen Quin Non‐Executive
2
For
per
sona
l use
onl
y
Eritrea Project SnapshotEritrea Project Snapshot
Chalice is a gold development company in the highly prospective and underexplored Arabian‐Nubian Shieldp
Chalice is developing the high‐grade, low cost Zara Project in Eritrea
Feasibility completed permitting underwayFeasibility completed, permitting underway
Open pit ‐ 760,000oz Ore Reserve @ 5.1g/t Au
Average annual production of 104,000oz over 7 year mine life
US$338/oz cash operating costs
Significant exploration upside
600 km2 of granted tenements
>19,000 km2 of regional tenement applications
Major exploration program underway
3
Major exploration program underway
For
per
sona
l use
onl
y
The OpportunityThe Opportunity
Chalice will be a high grade, low cost producer
717 718750
700
800
5
6
532
573 6004
Cash Coade (g/t)
426453 462
495
400
500
2
3
osts (US$/ozRe
serve Gra
338
3001
z)R
200‐
Chalice SEMAFO Perseus Banro Adamus MDL Centamin Avocet Crew Cluff Noble
Cash Costs Grade (g/t)
4
Noble cost of production information not available.
For
per
sona
l use
onl
y
Comparative Market ValuationsComparative Market Valuations
However, Chalice trades significantly below its African peers
2,543
600
700
500
A$/oz)
300
400
/ Re
serves (
100
200EV /
‐
Banro Chalice Crew Noble Adamus Centamin Avocet Perseus MDL Cluff SEMAFO
Enterprise values adjusted for in‐the‐money options.
5
For
per
sona
l use
onl
y
Where is Eritrea?Where is Eritrea?
6
For
per
sona
l use
onl
y
The Arabian‐Nubian ShieldThe Arabian‐Nubian Shield
CitadelJabal Sayid
CentaminSukari
10 year 61 kt pa Cu
15 year500 koz pa Au
ChaliceZara
La ManchaHassai
7 year104 koz pa Au
NevsunBisha6 year
156 koz pa + VMS
The Zara Project is located within southern Arabian‐Nubian Shield
>10 yearAu, Ag, Cu, Zn
Current resources +20Moz gold Over 1,000 recorded ancient copper and gold minesMinimal modern explorationMinimal modern exploration
World‐class projects now being developed7
For
per
sona
l use
onl
y
Arabian‐Nubian Shield CompaniesArabian‐Nubian Shield Companies
Chalice set for significant growth
Market Capitalisation Growth
Company DFS Completion First Production
Centamin A$646 mA$2,926 m at last trade
353% Growth
Nevsun A$386 mA$1,093 m at last trade
183% Growth
Citadel A$539 mSubject to A$1.25 billion
Equinox takeover132% Growth
Chalice A$150 m
8
For
per
sona
l use
onl
y
Zara Project LocationZara Project Location
Bisha
ZARABisha
9
For
per
sona
l use
onl
y
The Mine SiteThe Mine Site
10
For
per
sona
l use
onl
y
Koka Gold DepositKoka Gold Deposit
Indicated Resource of contained gold 840,000 Oz
~600m strike length,
Probable Reserve of contained gold 760,000 Oz
11
*Both based on 1.2 g/t cut‐off
For
per
sona
l use
onl
y
Koka Outstanding ReturnsKoka Outstanding Returns
600700800
900
100000
120000
140000
160000Production
Cash costs
(koz)
US$/oz)
100
200300400500600
20000
40000
60000
80000
100000
Prod
uctio
n
Cash Costs (U
00
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
150
50
100Distributions
Equity contributions
Flow
(US$m)
Cash flow to equity
‐100
‐50
0
Cash
US$1300 gold price
100% project case funded by 100% equity
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
100% project case, funded by 100% equity
Capex US$122M, after tax cash flow generation US$477M12
For
per
sona
l use
onl
y
Koka Development ScheduleKoka Development Schedule
Calendar Year 2010 2011 2012 2013
Quarter Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Maiden Reserve
Quarter Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Feasibility Study
Release 43‐101COMPLETED
TSX listing
Zara Permitting
Funding Period
Construction
Pre‐Strip
First Production
13
For
per
sona
l use
onl
y
ENAMCO InterestENAMCO Interest
ENAMCO has elected to acquire a 30% paid participating interest in Koka (+10% carried interest)
Participating interest to be acquired at “fair value”
Process undertaken by ENAMCO and NevsunR f th Bi h P j t t d t t thResources for the Bisha Project expected to set the precedent
ENAMCO to contribute their share of capital costsp
15
For
per
sona
l use
onl
y
Exploration PotentialExploration Potential
Zara NorthBLEG & ‐80# gold anomaliesRock‐chips to 11 g/t Au
Koka840,000 oz Resource
Konate
3D IP Survey
KonateIntersections to 7m @ 22.3g/t
FahSoil sampling
2 km
15
For
per
sona
l use
onl
y
Koka 3D IP – Near Mine TargetsKoka 3D IP – Near Mine Targets
W EW E
14
For
per
sona
l use
onl
y
Zara North Gold AnomalyZara North Gold Anomaly
16
For
per
sona
l use
onl
y
Exploration TimelineExploration Timeline
Exploration program to generate strong news flow
Calendar Year 2010 2011
Quarter Q2 Q3 Q4 Q1 Q2 Q3 Q4
InducedPolarisation (IP)
SurveyAero‐MagneticsAero Magnetics & RadiometricsGeochemical Sampling & Geological Mapping
Drilling
18
For
per
sona
l use
onl
y
Analysts Covering the Chalice StoryAnalysts Covering the Chalice Story
A liAustralia
Southern Cross EquitiesPeter Chapman
E: [email protected] T: +612 9231 0880p p q
Paterson Securities LimitedSimon Tonkin
E: [email protected] T: +618 9225 2816
Argonaut LimitedArgonaut LimitedTroy Irvin
E: [email protected] T: +618 9224 6871
North AmericaNorth America
Haywood Securities LimitedE: [email protected] T: +1 (604) 697 7124
Stifel NicolausE: [email protected] T: +1 416 815 3080E: [email protected] T: +1 416 815 3108E: [email protected] T: +1 416 815 1548
19
For
per
sona
l use
onl
y
For
per
sona
l use
onl
y
