- Chalice Mining (CHN) proposes to demerge its Pyramid Hill Gold Project in Victoria and other assets to deliver a standalone, ASX-listed gold company
- The new venture will target tier-one discoveries in Victoria and Western Australia (WA) as Chalice focusses on its Julimar Project and West Yilgarn Ni-Cu-PGE Province in WA
- The announcement follows “high-grade” results from diamond and air core drilling at Pyramid that demonstrate the project’s “belt-scale potential”
- Chalice will pursue the demerger and initial public offering in the fourth quarter of 2021, subject to approvals
- Shares are up 0.27 per cent at $7.36 at 11:24 am AEST
Chalice Mining (CHN) looks set to demerge its Pyramid Hill Gold Project in Victoria, alongside other assets, to deliver a standalone ASX-listed gold company.
The proposed separate venture will target tier-one discoveries in Victoria and Western Australia in an effort to maximise value for shareholders.
Specifically, the move enables the company to focus on its flagship Julimar Nickel-Copper-PGE Project and continue exploration at the new West Yilgarn Ni-Cu-PGE Province, which are both located in Western Australia (WA).
Diamond drilling at Karri
The announcement this morning follows the latest results returned from phase two diamond drilling at Pyramid, where 11 holes have been completed at the Karri prospect.
Drilling reportedly intersected several primary zones of high-grade gold with best results including 5.1 metres 14 grams of gold per tonne (g/t) from 100.9 metres, which also contained 2.2 metres at 32.2g/t gold.
Importantly, Chalice said the recent results had upgraded the prospect and further infill diamond drilling was planned.
Air core drilling at Ironbark, Banksia and Wandoo
Additionally, the company has completed second-phase reconnaissance air core (AC) drilling at the project’s undercover Muckleford and Mt Williams areas, where 329 holes have been drilled.
Several significant, shallow gold intersections were returned from the Ironbark prospect, including six metres at 3.8g/t gold from 56 metres.
The company said these results warranted follow-up diamond and AC drilling.
Further, CHN has identified two new multi-kilometre prospects — Banksia and Wandoo — with what it calls several “highly encouraging” intersections.
Subsequent infill AC drilling is planned to refine these prospects prior to deeper RC and diamond drilling.
Off the back of the results, Chalice Mining Managing Director Alex Dorsch commented on the proposed demerger: “(It) provides an exciting opportunity for our shareholders to benefit from the creation of a standalone, well-funded Australian gold exploration company with a high-quality asset base in Victoria and WA,” he said.
“The board has made this decision after conducting a detailed review of our portfolio in light of the enormous success we have enjoyed over the past 18 months at our flagship Julimar Nickel-Copper- PGE Project in WA.
“This review concluded that the creation of a new gold-focussed explorer would be the optimal structure to ensure that the full potential of the gold portfolio can be realised, while allowing Chalice to continue to focus on completing the resource drill-out and rapidly advancing studies at Julimar.”
Looking ahead, Chalice will pursue the demerger and an initial public offering for Pyramid Hill and other gold assets in the fourth quarter of 2021, subject to regulatory and shareholder approvals.
The company is due to facilitate further discussion around the proposal and provide an update on exploration activities during a webinar on July 12.
Shares are up 0.27 per cent at $7.36 at 11:24 am AEST.