Annual Report on EL 23764 for the period 26 November 2017 to 25 November 2018 Warrego North, Tennant Creek, Northern Territory

Abstract

Exploration Licence 23764, Warrego North, comprises 23 sub-blocks covering an area of 74.5sq km near Tennant Creek in the Northern Territory, targeting Tennant Creek-style Cu and Au ore deposits. EL 23764 was granted on 26 November 2003. In 2009 the tenement was subject to a farm-in and joint venture agreement with Sipa Exploration NL which terminated in 2013. Meteoric has carried out exploration including geochemical sampling, ground magnetic and gravity surveys and RC drilling of targets to depths of up to 200m below surface. This and previous exploration has demonstrated the presence of mineralised ironstones in several locations on the tenements. In addition, previous JV partner Sipa Resources carried out a high-resolution aeromagnetic survey. Interpretation of the aeromagnetic and gravity data identified a number of combined magnetic and gravity anomalies that warrant further exploration, including a large, pronounced anomaly at Parakeet west of the Warrego Granite and anomalies at Cuddihy and Pipeline east of the Warrego Granite. These anomalies are similar to those known to be associated with Cu-Au mineralisation in the Tennant Creek Mineral Field. Modelling of the magnetic and gravity data at Parakeet indicates that the source of the anomalies is below the existing drilling and that this drilling may have intersected anomalous copper-bismuth+/- gold mineralisation above a copper-gold system at depth. In 2016 Meteoric entered into a farm-in and joint venture agreement with CGM (WA) Pty Ltd. CGM reviewed historical data to generate a series of targets which were followed up during the 2017 field program. One RC and five diamond drill holes with RC pre-collars were drilled for a total of 2331m to test beneath existing holes which encountered mineralised ironstone. Drill holes were positioned to intercept coincident gravity and magnetic anomalies and/or chargeability anomalies based on newly acquired data from the 2017 induced polarisation survey. Results from the drill program were interesting but uneconomic with only low-order mineralised ironstone encountered in three out of the six holes. 450m of sporadically outcropping ironstone was delineated during a mapping program and found to align conformably with a region of elevated chargeability. Surface geochemical analysis of this ironstone showed elevated gold of up to 0.14 ppm. This ironstone trend is recommended to be followed up with a small RC drill program due to being inadequately tested by historical drilling. During 2018, Chalice shifted focus to drilling at the Emu prospect on neighbouring EL 31610 where four RC holes were drilled into three interpreted ironstone bodies. Whilst elevated copper results were returned (refer to EL 31610 annual report), results indicated the highly magnetic bodies were basaltic in composition with unusually elevated iron (magnetite) levels (7-20%), a potential contact metamorphic effect from the intruding Warrego granite and/or late remobilisation and deposition of iron via hydrothermal and/or other epigenetic processes. Chalice considers the anomalies to be analogous with the numerous unnamed Paleoproterozoic dolerite units mapped within the Tomkinson Creek Group further to the north as defined on the 1:100K Short Range geological Map Sheet. Rehabilitation works were completed at the Parakeet prospect (EL 23764) along with some minor desktop geological evaluation of the Parakeet prospect. Some regional gravity and aeromagnetic re-processing was also carried out over the greater Tennant Creek region.