Dual-listed (ASX and TSX) Chalice Gold Mines announced yesterday that it will pull out of a joint venture agreement with Pilbara explorer Red Hill Iron, having deemed the company’s results inadequate.
The farm-in and joint venture would have seen Chalice earn up to a 51 per cent interest in non-iron rights (primarily gold) from Red Hill Iron’s operations, or 70 per cent if Red Hill chose not to commence contributions to Chalice once it had received 51 per cent.
Further information relating to the details of the split is expected to be released in Red Hill Iron’s upcoming Q4 report, but company chairman Neil Tomkinson did repeat a summary of Chalice’s views via Red Hill’s ASX statement, which reports a total drilling of 276 holes (though the actual figure is 335 holes).
“In total, 276 holes [sic] for 9259 metres were drilled including 276 AC holes for 5685 metres and 59 RC holes for 3574 metres,” he explained. “While anomalous results were returned from several of the prospects, they are not considered sufficiently encouraging to warrant follow-up exploration.”
Chalice’s quarterly report, released today, makes brief mention of the Red Hill situation but concentrates primarily on its Canadian operations, including the progress of a 30,000 metre drilling program at its flagship East Cadillac and the recent commencement of the Kinebik gold project in Quebec; the company reported a quarterly cash flow of $42.5 million overall.