Ann: Analyst Research Report, page-4

JRPC,

I'm afraid I'm an old fogey and consequently somewhat of a Luddite. So the downloading you asked for is a bit beyond me.

I can, however, touch type so here are the first couple of pages of the Report. The remaining pages are location maps, drilling reports and observations re the different projects Chalice have on hand - pretty much as covered in Chalice's Quarterly Activities Report of 30th. October, and in their 2015 AGM presentation plus the Cameron Gold Project Update of 7th. December.

"KEY POINTS:
* Chalice Gold recently announced an updated Mineral Resource of 1.57Moz Resource at the Cameron Gold Project in Ontario, Canada.
* This followed re-logging of 771 diamond drill-holes (~102,000m of drilling), assaying of an additional ~30,000 new samples and the construction of a new comprehensive geological model for the Cameron deposit.
*Chalice is well funded for exploration, with a cash balance of over ~A$38m. This will be more than sufficient for upcoming programs planned on the Canadian projects.
*CHN entered into a JV agreement with Canadian gold explorer Northern Superior Resources Inc. in April 2015k giving the right to earn a 65% interest in the Croteau Est gold property in Quebec. A maiden mineral resource estimate is nearing completion expected to be released in Cy 15.
*Chalice continues to target additional high-potential opportunities in the region and elsewhere.
*CHN is below cash-backing and a leveraged option on gold. Numerous exploration targets have been identified at the Cameron Project and Chalice will look to sufficiently drill each one. The aim is to add further shallow ounces and progress to a Preliminary Economic Assessment in due course. Based on this we initiate with a SPECULATIVE BUY rating.

INVESTMENT SUMMARY
CHN has a cash balance in excess of A$38m and this allows the company to properly drill test the gold targets (with the primary focus at the Cameron Gold Project in Ontario, Canada). Chalice is also in a position to deal on a number of resource projects that come to market, which may present some real opportunities in the near term (particularly with the majors still offloading non-core assets).
Chalice has a history of progressing mining projects to a point where it can be developed or potentially sold. CHN received a combined total of US$114 (A$82m net after tax) in 2012 from the sale of the Zara Gold Project in Eritrea. The deal was completed with ENAMCO and China SFECO. This included a US$2m payment on upon the first gold pour from the Koka Gold Mine (Zara Project), which is now confirmed to be paid to Chalice in December, 2015.
It is from this position that Chalice has since done a capital return of $A25m back to the shareholders, on-market buy-backs and further investment into a number of resource projects. This eventually led to the merger deal on the Cameron Gold Project (with Coventry Resources: CYY) in early 2014 - the first major investment by Chalice since the sale of Zara.
The Cameron Gold Project has a large resource base (~1.6Moz) and significant work has been completed by Chalice to ensure the numbers are robust.
The next steps will be to explore for shallow mineralisation that can be mined via an open pit scenario, which will complement the Cameron Deposit (with a view to have an operation with a central processing facility). Currently, the initial years of a proposed operation look difficult based on the geometry of the ore body. Any additional feed that can come into the production profile at an early stage; this will not only lessen the impact of the initial Capex requirement, but ultimately unlock long-life mine (mixture of open pit and underground).
Our price target of 20c is based on current cash position and an underlying value of $10/resource oz at the Cameron Gold Project
*Ordinary Shares: 282.7m
*Cash $38m + US$2m ~ A$40.8m
*Global Resource: 1.569Moz (multiply by A$10/oz) = A$15.69m
This equates of ~20c/share and the value of the ounces in ground will obviously improve as the project progresses and/or if further discoveries are made to enhance the economics of the deposit.
Chalice has also stated they are continually in the process of reviewing any potential projects and this may be an opportunity over the coming months with the majors (ie; Glencore, Newmont etc) looking to potentially reduce their exposure to development costs and focus on core assets. With such a sizeable cash position, CHN is able to look at larger, more advanced projects and will pursue economically viable projects. WE INITIATE ON CHALICE WITH A SPECULATIVE BUY RECOMMENDATION AND AT THIS STAGE SEE LITTLE SHARE PRICE DOWNSIDE BASED ON THE COMPANY'S STRONG CASH POSITION"



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