Discovery of new >2km gold trend in air-core drilling at Karri Target indicates potential for a significant gold system

Drilling has now significantly upgraded a second target at the district-scale Pyramid Hill Gold Project in Victoria

Highlights

• Encouraging assays received for ~4,700m of Phase 2 air-core (AC) drilling at the Karri Target.
• Anomalous gold intersected in basement on ~1km spaced drill lines over a >2km strike length – mineralisation remains open along strike.
• Strongly anomalous gold grades for this early stage of drilling up to 0.7g/t Au (in 4m composites) intersected in zones of abundant quartz veining with accompanying sulphides.
• Several parallel gold trends over an area of ~1.5 x 2km are emerging, indicating the potential for an extensive primary gold system.
• Similar anomalous gold intersections on wide-spaced drill lines were early indicators of significant gold discoveries undercover by other explorers in the region.
• Given the high-grade nature of historic gold deposits along strike from Karri to the south of the Project, such as Ballarat (~14Moz @ ~12g/t Au) and Maldon (~2Moz @ 33g/t Au), the Company is optimistic about the potential to discover high-grade gold mineralisation at Karri. 
• In-fill AC drilling is currently underway to a line spacing of 500m and an initial phase of diamond drilling is planned in January 2020 .
• Encouraging visual indications of similar quartz veining and sulphides in several recent holes at 500m line spacing indicate a continuous mineralised trend is likely – all assays are pending for these holes.
• Chalice's ongoing 25,000m Phase 2 AC program continues to upgrade several key targets on the Project, with both Karri and Ironbark now showing encouraging early signs of potential for large-scale mineralised systems.
• Chalice is positioned well in this exciting region with a 100%-owned, ~5,190km² land position and remains fully-funded to continue its systematic exploration on the Project, with a working capital and investments balance of ~$30M ( $0.11 per share) as of 30 September 2019 .

PERTH , Western Australia, Dec. 12, 2019 /CNW/ - Chalice Gold Mines Limited ("Chalice" or "the Company") (ASX: CHN | TSX: CXN | OTCQB: CGMLF) is pleased to announce encouraging air-core (AC) drilling results from the Karri Target at its 100%-owned Pyramid Hill Gold Project, located in the Bendigo Region of Victoria .

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