Group Annual Report GR500 EL 31608 and EL 31610 for the period 22 May 2018 to 21 May 2019 Warrego North

Abstract

Exploration Licences 31608 and 31610 partly comprise CGM (WA) Pty Ltd's Warrego North Project and covers a combined area of 107.08 sqkm. The project, which also encompasses EL 23764 in joint venture with Meteoric Resources NL, is located approximately 55 km NE of Tennant Creek in the Northern Territory (figure 1) and is targeting Tennant Creek-style iron oxide copper-gold (IOCG) mineralisation. EL 31608 and EL 31610 were granted on 22 May 2018. During the first reporting period, CGM (WA) Pty Ltd carried out RC drilling at the Emu prospect consisting of 4 reverse circulation (RC) holes totalling 1206m targeting coincidental aeromagnetic and ground gravity targets (figures 2 and 3) potentially indicative of concealed ironstones which are the known hosts for IOCG mineralisation in the district. The RC drilling was successful in testing the targets. Anomalous copper results including 8m at 0.15% Cu incl. 1m at 0.35% Cu in WNERC18003 and 1m at 0.43% Cu in WNERC001 were best results. Interpretation of results concluded the magnetic bodies were not typical ironstones but rather unusually iron rich dolerites. While the unusually high iron content (c. 7-15%) in the Dolerites remains enigmatic, metamorphic and/or metasomatic processes with the adjacent Warrego granite are possible causes. Chalice considers the dolerites to be analogous with the numerous unnamed Paleoproterozoic dolerite units mapped further north within the Brumbreu Formation of the Ooradidgee Group and the Hayward Formation of the Tomkinson Creek Group as defined on the 1:100K Short Range geological Map Sheet and interpreted regional geology of the Warramunga Province based on Donnellan etal (1999).