Chalice farms into prime Abitibi gold province acreage

Chalice Gold Mines Limited (ASX: CHN) has taken a further step towards consolidating a significant ground position in the Abitibi gold province in Quebec with a new farm-in agreement with Khalkos Exploration Inc.

The company has entered into a binding option and farm-in agreement to acquire up to a 70% interest in the Forsan Gold Project in the Abitibi region, one of Canada’s premier gold district hosting multi-million ounce gold deposits.

Chalice’s Managing Director Tim Goyder said the acquisition of the Forsan Gold Project interest adds to the already significant contiguous land position held by Chalice along the Larder Lake-Cadillac fault at its East Cadillac Gold Project.

The Forsan property comprises 27 claims for a total area of 12.4 km² and covers approximately 4.3km of a major parallel east-west trending fault 3.3 km north of the Larder Lake – Cadillac fault. Many of the gold deposits in the Val d’Or district including the Sigma Lamaque deposit, +9M oz Au, occur on similar second order faults.

Historical exploration between 1937 and 2009 has focused almost entirely on the Forsan Main and East zones resulting in the majority, approximately 3 km, of the east-west fault within the Project area being underexplored.

Mr Goyder said the company will commence a review of historical exploration results and merge the data with the Company’s East Cadillac Gold Project to allow an integrated approach to exploration targeting over the Company’s consolidated land position.

“The Abitibi is one of the world’s most prolific and well known gold provinces and is host to numerous world-class deposits,” Mr Goyder said.

“Chalice is committed to the district and will continue to add to our strategic position covering the major regional fault system that controls a majority of the known gold mineralization in this region.

“We look forward to commencing an immediate review of the project in anticipation of defining targets for drill testing as soon as possible.”