Ann: Exploration Update, page-54

I'm not cross promoting as I don't own any shares in Chalice.
But I did find the following one-pager from Euroz pretty interesting and it helped me understand what is happening 30km away from our prospect.
(unfortunately HotCopper won't allow me to post the maps which help explain the size, strike and depth of their deposit)

I like this part in the summary:
Whilst there remains much work to do, including initial metallurgical testing, this is shaping up as one of the best discoveries in the past decade.

So remember that Julimar started as a foot print and has slowly turned into something big and it could just keep getting bigger.
And while MAN wait for their Exploration Licence and then hopefully drill in November, the system already looks 'live' so the probability of success is better then average.

Anyway, I think the EM survey has finished.
Results will be out in a week or two or three.
Targets will be identified and then we wait to drill.

An exciting punt.

	Column 1	Column 2	Column 3	Column 4	Column 5
1	"
2	Column 1Chalice Gold Mines Ltd (CHN $1.25) Speculative Buy Column 1Analyst

[/table]| Date| Price Target | 17/8/20| $1.50/sh[/table]
Extension of high grade zones at Julimar

Key Points

· Excellent drill results have extended the three high grade PGE-Ni-Cu- Co zones at Julimar.

G1 Zone

· G1 (discovery zone) now drill confirmed over ~400m strike extent and down dip extent increased from ~250m to 340m.

· 40m visual intercept (matrix, minor massive and diss sulphides) from 224m and 80m down dip of JD003 suggest zone is widening down dip to the west (JD013).

· New intercepts in G1 zone include 31m @ 3.3 g/t Pd, 0.7 g/t Pt and 0.4% Ni incl 13m @ 5.8 g/t Pd, 1.5 g/t Pt and 0.7% Ni and 30m @ 2.8 g/t Pd, 0.3g/t Pt, 0.4% Ni incl 6.4m @ 6.3 g/t Pf, 0.5 g/t Pt.

"
G4 Zone

· The high grade PGE Cu – Au zone interested in two new holes over 300m. Results include 25.7m @ 3.9 g/t Pd, 2.3 g/t Pt and 0.7 g/t Au from 426m incl 6.7m @ 10.6 g/t, 7.7 g/t Pt 1.3 g/t Au and 1% Cu.

· 25m interval of logged sulphides from 240m depth (JD010) and a new 27m interval of disseminated sulphide from 81m in JRC048 is interpreted to be a similar style of mineralisation and may extend G4 over ~ 400m east.

· G4 zone appears to be localised along the footwall contact of the Gonneville Intrusion.

· CHN believe the presence of mineralisation associated with the footwall contact is highly significant, especially in relation to the large new SQUID EM conductors situated to the NW of the intrusion and will be a target for future drilling.

G 3 Zone
· The G3 zone is a shallow, thinner zone of mineralisation and drilling has confirmed this zone 80m to the north and also 40m to the west of this zone of 13.7m @ 4.4 g/t Pd, 0.9 g/t Pf 0.7% Cu from 29m.

Disseminated Zone
· 19 new step out RC holes were drilled on a 200m x 80m step out grid and continued to intersect wide zones of disseminated sulphides with widths ranging from 5m to 117m and grades ranging from 0.5-2.3 g/t Pd and 0.1-5 g/t Pt. Thickest intersection returned 177m @ 0.52 g/t Pd and 0.11 g/t Pt.

Our Interpretation
· Previously we had speculated the G1 zone could contain 2-3mt of high grade ore, we now believe a target of 4-5mt is reasonable given the latest results. The tenor of the results are similar to the original holes with in-situ ore values of > US$500/t of ore.

· We are particularly encouraged with the new results from the G4 zone and the potential for this to host significant high grade mineralisation. If it does have a strike extent of 400m and an average width of ~ 20-25m then a body of mineralisation of >5mt is feasible. Its highest grade intercept (6.7m @ 10.6 g/t Pd, 7.7 g/t Pt and 1.3 g/t Au and 1% Cu) has an in-situ value of >US$1,000/t . This is a an outstanding intercept.

· The new results demonstrate the possibility of a more modest scale open pit/high grade underground operation rather than the previously envisaged bulk tonnage, low-moderate grade open pit operation that is supplemented in the early years with the higher grade G1 zone ore – ie, less reliance on the bulk disseminated ~ 0.8-1 g/t Pd/Pt ore.

Investment Case
Julimar continues to excite with high grade extensions at all three zones.
The potential thickening of the G1 zone and tonnage at depth and grade/tonnage potential of G4 highlight the potential of a stand alone operation.

Whilst there remains much work to do, including initial metallurgical testing, this is shaping up as one of the best discoveries in the past decade.

How Julimar ultimate shapes up is still unkown but there now appears to be greater flexibility in terms of scale/cost of a development. We retain our $1.50/sh PT but are cognisant that if the metallurgical testwork is fine and drilling continues to extend the high grade zones the stock will be going significantly higher.