Gnaweeda
The Gnaweeda Gold ProjectChalice Gold's Gnaweeda Project comprises over 190 square kilometres of tenements covering an extensive part of the Gnaweeda greenstone belt in the Murchison region, 30 kilometres east of Meekatharra, Western Australia (Figure 1) and approximately 640 kilometres from Perth.
Kent Exploration, through its wholly owned subsidiaries, Archean Star Resources Inc and Archean Star Resources Australia Pty, Ltd, (together "Archean") has entered into an Option Agreement with Teck Australia Pty, Ltd, (Teck) whereby Kent can earn 100% of Teck's now approximately 76% interest in Chalice Gold's Gnaeeda Gold Project. To earn its 100% interest in Teck's interest in Gnaweeda, Kent is committing to spending AUD$3 million over 4 years with AUD$650,000 having been expended on geophysical programs and a first phase diamond drill program to May 31, 2010.
Ms. Nancy Reardon, M.Sc. P.Geol. is the senior consulting geologist for the Company on the project, and will work with Teck geological personnel on further defining the exploration targets.
The Company has completed a 1,600 meter, first phase drill program consisting of 8 diamond drill holes, of which 1,100 meters were conducted on the Turnberry prospect and 500 meters on the Bunarra prospect, where Significant Assays of up to 99.1 g/t Au over 1 meter have been assayed in an 18 meter intersection grading 11.09 g/t Au, which also includes 4 m at 37.7 g/t Au.
Historical exploration has defined an extensive gold and arsenic anomalous zone, over 15 kilometres long and up to 750 metres wide, within a package of mafic and felsic rocks (the Fairway Magnetic Package, or FMP). Gnaweeda is considered highly prospective for gold mineralisation, principally developed within the FMP.
Recent Exploration: The Company's wholely owned subsidiary, Archean Star Resources, has completed eight diamond drill holes at the Gnaweeda Gold Project.
Prior to this diamond drill program by Archean, Teck Resources Australia Pty, Ltd completed nine RC holes on the Turnberry Prospect. The first four holes (GNRC001 to GNRC004) targeted the strike and dip extensions of known gold mineralisation beneath the predominantly shallow (approximately 100 m) historical drilling. The holes largely intersected coarse-grained mafic or dolerite rocks with pervasive carbonate alteration, localised quartz-carbonate veining and disseminated pyrite. Three of these holes returned narrow high grade gold intercepts, within broader zones of anomalous gold mineralisation. Best results included 1m @ 37.60 g/t gold from 50 m in GNRC003 and 1 m @ 11.06g/t Au from 16 m in GNRC002.
Follow up holes (GNRC005 to GNRC009) were planned to follow up results from the previous RC holes and to test open zones in the north of the prospect. The holes encountered a mixed package of foliated mafic volcanics, dolerite, shale, ultramafic schist and minor feldspar porphyry (in GNRC005). Nearly all holes encountered zones of strong carbonate, quartz, pyrite veining and wallrock alteration.
The strongest gold mineralisation was encountered in foliated fine-grained mafic volcanics that have been strongly carbonated and contain disseminated pyrite and quartz veining (GNRC005), and a shale/fine mafic volcanic unit with abundant quartz veining, chlorite and sericite alteration, and minor pyrite (GNRC009).
Best gold results included:
1 m @ 59.27 g/t from 168 m and 1 m @ 8.60 g/t
from 169 m in GNRC009; and
1 m @ 23.02 g/t from 277 m and 1 m @ 8.07 g/t from 278 m in GNRC005.
Shallow 5 m composite samples returned 11.64 g/t gold from 15 to 20 m in GNRC007 from lateritised clays directly beneath the transported cover and 13.49g/t gold from 80 to 85m in GNRC008 from red-brown weathered saprolite.
Further RC and diamond drilling is planned at the Turnberry and St Anne Prospects to test the extent of known mineralisation indicated in the RC drilling to date; and to provide important structural information about the system to aid understanding of controls on mineralisation for future targeting of thicker high-grade zones.
