Chalice Gold Mines has announced that it has secured an extensive strategic position for a ‘highly prospective’ potential gold mine project in north-western Victoria.
The new Pyramid Hill Gold Project has been ‘leveraged’ by the state government’s ‘Gold Uncover’ initiative which estimated a possible 32Moz of an undiscovered gold endowment in the new zones north of Bendigo.
Two exploration licences have been secured for the areas north of Bendigo which encompass 1,300 square kilometres in one of Australia’s most popular gold districts.
The new zone is north of the 18Moz Bendigo Goldfield which was historically the second highest gold producing area in Australia after Kalgoorlie.
The company lodged two exploration licence applications to the Victorian State Department in December 2017.
The ELAs have been newly advertised and are advancing through the final assessment process towards a final decision which will be granted later in the year.
Chalice is aiming to commence fieldwork once the tenements are granted and is presently reviewing its previous exploration results and planning field activities from past projects.
The company has initiated an initial compilation of regional gravity, aeromagnetic and geological data sets which indicated the two tenement areas overlie the Muckleford fault and other intercepted sub-parallel faults under the Murray Basin cover.
The Pyramid Hill Gold Project is consistent with the company’s history of exploring other gold districts.
Chalice will draw on its extensive previous experience of exploring under cover and apply it to the planned exploration program in northern Victoria.
The prospective area is underneath the Murray Basin cover and is largely incompatible with traditional gold mining techniques used for exploration such as prospecting and geochemical sampling.
Areas such as the prospective tenements for the Pyramid Hill Gold Project can be explored effectively using techniques such as ground gravity, which is used to indicate an approximate exact position of faults or alteration zones underground.
The company has extensive history in under cover exploration in its current Canadian projects which will have direct application to the new Pyramid Hill Gold Project.
The region is currently experiencing a resurgence in gold exploration based on the success of Kirkland Lake Gold’s Fosterville operations and other results from Catalyst Metals’ projects close to the Whitelaw fault.