Two new gold discoveries expand the district-scale potential of the East Cadillac Gold Project, Canada

PERTH, Australia, May 31, 2018

Highlights:

• Two new significant zones of mineralisation have been intersected during Phase 2 of the recently completed 27,300m regional diamond drill program.
• Hole ECG-18-72 at the North Contact target has intersected a wide mineralised zone of 23.5m at 1.12g/t Au from 180.5m including two high grade zones of 2.0m at 6.86g/t Au and 1.0m at 5.71g/t Au.
• The new intersection at North Contact is in addition to a previously reported intersection of 6.5m at 1.77g/t Au from 157m (ECG-18-24) which now defines an extensive new mineralised strike of >1km.
• The North Contact zone has only been intersected in four holes to date and remains open both along strike and up and down dip.
• Hole ECG-18-49 at the Lac Rapides target has intersected a wide mineralised zone of 20.8m at 0.74g/t Au from 316.7m, including a high grade zone of 3.1m at 4.27g/t Au.
• The mineralisation at Lac Rapides has only been intersected in two holes to date and remains open both along strike and down dip.
• These new results follow-on from the highly encouraging results at Simon West, where a mineralised strike of >3.5km remains open to the west.
• Summer work program being finalised and expected to commence in July 2018.

PERTH, Australia, May 31, 2018 /CNW/ - Chalice Gold Mines Limited (TSX:CXN; ASX:CHN)  is pleased to report two significant new mineralised trends which have further enhanced the potential of its East Cadillac Gold Project, located in the Abitibi gold province in Quebec, Canada.

The new drill intercepts have been confirmed following the receipt of a number of new assay results from the recently completed 27,300m regional diamond drilling program. The intercepts at the North Contact and Lac Rapides targets significantly expand the potential of the project to the north and south-east beyond the known Cadillac fault-hosted mineralisation. The lateral extent and thickness of the gold intercepts is considered encouraging and suggests potential for large scale mineralising systems in the area.

The new mineralised zones add to the previously announced discoveries at Simon West, which has now expanded the historical Cadillac fault-hosted mineralisation at Simon West to approximately 3.5km along strike.

The 27,300m regional diamond drill program was designed to follow-up on potential extensions to the gold mineralisation previously intersected at Nordeau West and Simon West, and to complete an initial assessment of prioritised regional targets (Simon Far West, North Contact, Lac Rapides and Marilynne) identified from both surface geochemistry and 3D Induced Polarisation surveys undertaken in 2017 (Figure 1).

The latest assay results have confirmed the presence of significant gold mineralisation at the North Contact and Lac Rapides zones, along with further encouraging intersections at Simon West.