ANNUAL REPORT
2015
Corporate Directory
Chalice Gold Mines Limited
Corporate Directory
Directors
Anthony Kiernan
Timothy (Tim) Goyder Managing Director
Stephen Quin
Chairman
Non-executive Director
Company Secretary
Leanne Stevens
Principal Place of Business & Registered Office
Level 2, 1292 Hay Street
WEST PERTH WA 6005
Tel:
Fax:
Web: www.chalicegold.com
info@chalicegold.com
Email:
(+61) (8) 9322 3960
(+61) (8) 9322 5800
Auditors
HLB Mann Judd
Level 4, 130 Stirling Street
PERTH WESTERN AUSTRALIA 6000
Home Exchange
Australian Securities Exchange Limited
Level 40, Central Park
152-158 St Georges Terrace
PERTH WESTERN AUSTRALIA 6000
Toronto Stock Exchange
The Exchange Tower
P.O Box 421
130 King Street West
Toronto, Ontario M5X 1J2
Share Registry
Australia
Computershare Investor Services Pty Limited
Level 11, 172 St Georges Terrace
PERTH WESTERN AUSTRALIA 6000
Tel: 1300 787 272
Canada
Computershare Investor Services
100 University Avenue, 8th Floor
Toronto, Ontario M5J 2Y1
ASX
Share Code:
TSX
Share Code:
CHN
CXN
1
Chalice Gold Mines Limited
Contents
Chalice Gold Mines Limited
Contents
Contents
Chairman’s letter
Chairman’s letter
Operating and Financial Review
Operating and Financial Review
Mineral Resources Statement
Mineral Resources Statement
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4
10
Tenement Schedules
Tenement Schedules
Error! Bookmark not defined.
Directors’ Report
Directors’ Report
Error! Bookmark not defined.
Corporate Governance Statement
Corporate Governance Statement
Error! Bookmark not defined.
Auditor’s Independence Declaration
Auditor’s Independence Declaration
Error! Bookmark not defined.
Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income
Error! Bookmark not defined.
Consolidated Statement of Financial Position
Consolidated Statement of Financial Position
Error! Bookmark not defined.
Consolidated Statement of Changes in Equity
Consolidated Statement of Changes in Equity
Error! Bookmark not defined.
Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows
Error! Bookmark not defined.
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Error! Bookmark not defined.
Directors’ Declaration
Directors’ Declaration
Error! Bookmark not defined.
Independent Auditor’s Report
Independent Auditor’s Report
Error! Bookmark not defined.
ASX Additional Information
ASX Additional Information
Error! Bookmark not defined.
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Chairman’s Letter
Chalice Gold Mines Limited
Chairman’s letter
Dear Shareholders
As noted in this year’s Annual Report, the vision for
Chalice is to grow into a multi-asset resource company.
To achieve this the Board has endorsed the following
business strategies:
earn up to a 65% interest in the advanced Croteau Est
Gold Project in Canada by the expenditure of C$4m over
3 years. Resource and exploration drilling on the Croteau
Est Gold Project commenced during the year.
The third strategy of targeting more advanced projects
saw Chalice continue its evaluation of a range of
opportunities across a range of jurisdictions and
commodities. Applying a disciplined and forensic
approach has not, as at the date of the Annual Report,
led to a new investment that meets the Company’s
investment criteria. The search for new opportunities will
continue but not to be an investment at any cost.
The Company’s strong cash balance remains a valuable
asset and provides Chalice with great opportunities in
this current market.
I’d like to acknowledge the efforts of Managing Director,
Tim Goyder, who coupled with the technical skills and
drive of our Chief Operating Officer, Gary Snow, has been
relentless in the pursuit of value adding for shareholders.
To our shareholders generally, thank you for your
support.
Kind Regards
Anthony (Tony) Kiernan
Chairman
Grow and advance Chalice’s Cameron Gold
Project in Ontario, Canada by seeking to add
additional high grade ounces in close
proximity to the Cameron deposit whilst
concurrently evaluating future development
options.
Targeting more advanced mineral resource
projects, or where Chalice’s strong cash
position may provide a funding solution to the
development of the asset.
Targeting quality base and precious metal
exploration ground, preferably in lower risk
mining jurisdictions.
From an operational point of view the strategic focus
this year has centred around continuing to advance the
Cameron Gold Project by:
The re-logging of approximately 103,000
meters of historical drill core (from a total of
771 diamond drill holes); and
Revising capital and operating costs as
compared to Coventry Resources’ previously
completed Preliminary Economic Assessment
(PEA).
The re-logging, then sampling and assaying of
previously unassayed core has been designed to de-
risk the project and provide the potential to re-model
and update the mineral resource.
In relation to the PEA, the initial revision of engineering
and operating costs has led to the belief that material
reductions may be achievable in estimated capital and
operating costs.
As to the strategy of targeting quality exploration
ground, Chalice entered into a joint venture with a
Canadian company under which it had the right to
1
CHALICE GOLD MINES | ANNUAL REPORT 2015
3
Chalice Gold Mines Limited
Operating and Financial Review
Operating and Financial Review
CAMERON GOLD PROJECT REGIONAL
EXPLORATION POTENTIAL
The Cameron Gold Project (“Cameron”) has excellent
exploration potential, straddling several major regional
structures, including the Cameron–Pipestone and Monte
Christo Shear Zones. Although cumulative drilling on the
properties exceeds 120,000 metres, until Chalice acquired
the property, less than 5,000 metres of that drilling had
been conducted outside of the main deposits.
Geochemical sampling of the glacial tills, a primary
exploration tool in this glaciated terrane where outcrop is
less than 10% has previously focused along access roads
leaving major prospective structural corridors largely
unexplored.
BUSINESS STRATEGY AND OUTLOOK
Chalice’s vision is to grow a multi-asset resources
company by acquiring and developing high quality
mineral resource assets. To deliver this vision the
Company is pursuing the following business strategy:
Grow and advance Chalice’s Cameron Gold
Project in Ontario, Canada by seeking to add
additional high grade ounces in close proximity
to the Cameron deposit whilst concurrently
evaluating future development options.
Targeting more advanced mineral resource
project opportunities, or where Chalice’s strong
cash position may provide a funding solution to
the development of the asset.
Targeting quality base and precious metal
exploration ground, preferably in lower risk
mining jurisdictions.
in highly prospective belts
Looking forward, Chalice will continue to seek to grow
and enhance the value of the Cameron Gold project and
in parallel look for opportunities to secure good land
positions
in targeted
jurisdictions. Maintaining the Company’s strong cash
position and pursuing opportunities for one or more
advanced stage projects to add to the Cameron Project
will continue to be a key focus of the Company.
However, movements in commodity prices, foreign
exchange rates and interest rates may adversely impact
the achievement of these objectives.
EXPLORATION
CAMERON GOLD PROJECT, ONTARIO, CANADA
(100% CHALICE)
The Cameron Gold Project comprises the Cameron Gold
property, the West Cedartree property and the
Dubenski property and is located approximately 80 km
to the southeast of Kenora in western Ontario, Canada.
The Project has a measured and indicated resource of
675,000 ounces of gold at 2.09 g/t and an additional
inferred resource of 591,000 ounces of gold at 2.61 g/t
(including Dogpaw and Dubenski) (refer to page 7 for
detailed resource table).
CHALICE GOLD MINES | ANNUAL REPORT 2015 2
4
Operating and Financial Review
EXPLORATION AT CAMERON GOLD PROJECT
During the financial year ended 30 June 2015, the
Company conducted a disciplined target generation and
ranking exercise which has
identified numerous
exploration targets. Of these, approximately 10 high
priority targets have been selected as having the
potential to increase open pittable ounces within a
25km trucking distance of the Cameron mine which may
materially improve the economics of the project.
The targets have been defined from co-incidental
geochemical (MMI, rock chips, till), aeromagnetic and
previous drill anomalism.
The 2015 field exploration program, which commenced in
June 2015, will focus on the 10 high priority targets by
undertaking additional rock chip sampling, trenching and
drilling and is expected to be completed by December
2015.
Regional soil sampling and prospecting over existing and
newly acquired tenure has also commenced, the results of
which are expected to form the basis of trenching and/or
drilling during the 2016 field season.
Chalice Gold Tenements
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CHALICE GOLD MINES | ANNUAL REPORT 2015
5
Operating and Financial Review
PRELIMINARY ECONOMIC ASSESSMENT (‘PEA’)
PRELIMINARY ECONOMIC ASSESSMENT (‘PEA’)
With a weakening Canadian dollar versus the US dollar
With a weakening Canadian dollar versus the US dollar
resulting in an increasing Canadian dollar gold price,
resulting in an increasing Canadian dollar gold price,
the Company decided to undertake a PEA for the
the Company decided to undertake a PEA for the
Cameron Gold Project as a prelude to possible
Cameron Gold Project as a prelude to possible
feasibility studies. A PEA has been prepared by the
feasibility studies. A PEA has been prepared by the
previous owners, Coventry Resources Inc (“Coventry”)
previous owners, Coventry Resources Inc (“Coventry”)
in January 2013 which indicated favourable economics
in January 2013 which indicated favourable economics
at that time. During the year, the Company progressed
at that time. During the year, the Company progressed
the engineering and costing aspects of the PEA. The
the engineering and costing aspects of the PEA. The
initial results demonstrated material reductions in both
initial results demonstrated material reductions in both
the capital estimate and operating costs compared to
the capital estimate and operating costs compared to
the original January 2013 PEA prepared by Coventry.
the original January 2013 PEA prepared by Coventry.
As part of the PEA process, the Company is looking to
As part of the PEA process, the Company is looking to
de-risk the existing mineral resource by sampling and
de-risk the existing mineral resource by sampling and
assaying core from historical drilling which had not
assaying core from historical drilling which had not
previously been assayed and which has the potential to
previously been assayed and which has the potential to
be included in a re-modelled and updated mineral
be included in a re-modelled and updated mineral
resource.
resource.
At the date of this report, approximately 103,000m of
At the date of this report, approximately 103,000m of
core has been re-logged with approximately 30,000m
core has been re-logged with approximately 30,000m
re-sampled, largely from within the mineral resource
re-sampled, largely from within the mineral resource
envelopes. The re-logging and re-sampling exercise was
envelopes. The re-logging and re-sampling exercise was
completed in September 2015, and the data collected
completed in September 2015, and the data collected
will be used to model a new mineral resource.
will be used to model a new mineral resource.
Re-logging Historical Core at Cameron Gold Project
The PEA, which will incorporate the updated mineral
resource estimate, is expected to be completed by the
end of the calendar year.
The PEA, which will incorporate the updated mineral
resource estimate, is expected to be completed by the
end of the calendar year.
As the results of this program are currently being
compiled and a new mineral resource estimate is in
progress; until this estimate is complete, the impact on
the previously disclosed mineral resources (refer page 7)
cannot be determined.
As the results of this program are currently being
compiled and a new mineral resource estimate is in
progress; until this estimate is complete, the impact on
the previously disclosed mineral resources (refer page 7)
cannot be determined.
ROYALTY BUY-BACK
ROYALTY BUY-BACK
The Company has exercised its right to buy-back two-
The Company has exercised its right to buy-back two-
thirds or 2% of the existing Net Smelter Return (‘NSR’)
thirds or 2% of the existing Net Smelter Return (‘NSR’)
relating to the Cameron gold deposit for C$2 million
relating to the Cameron gold deposit for C$2 million
(~A$2.05 million). Following the acquisition of this NSR
(~A$2.05 million). Following the acquisition of this NSR
royalty, the Cameron deposit will now carry only a 1%
royalty, the Cameron deposit will now carry only a 1%
NSR and a separate smaller royalty of $0.30 per short
NSR and a separate smaller royalty of $0.30 per short
tonne of ore mined and milled.
tonne of ore mined and milled.
RAINY RIVER PROJECT, ONTARIO, CANADA (100%
CHALICE)
RAINY RIVER PROJECT, ONTARIO, CANADA (100%
CHALICE)
Chalice acquired an extensive group of claims in the
Chalice acquired an extensive group of claims in the
Rainy River area as part of the Coventry acquisition in
Rainy River area as part of the Coventry acquisition in
2014 in which till and MMI sampling identified low order
2014 in which till and MMI sampling identified low order
anomalies including a single coherent gold anomaly at
anomalies including a single coherent gold anomaly at
Conqueror. During the year, six diamond drill holes for
Conqueror. During the year, six diamond drill holes for
1,188 metres were drilled to test the anomaly at
1,188 metres were drilled to test the anomaly at
Conqueror and a pre-existing gold-in-till anomaly. There
Conqueror and a pre-existing gold-in-till anomaly. There
were no significant intersections as a result of the
were no significant intersections as a result of the
drilling, and the Company is considering its options in
drilling, and the Company is considering its options in
relation to this ground.
relation to this ground.
CROTEAU EST PROJECT, QUEBEC, CANADA (RIGHT
TO EARN A 65% INTEREST)
CROTEAU EST PROJECT, QUEBEC, CANADA (RIGHT
TO EARN A 65% INTEREST)
In April 2015, the Company entered into a joint venture
In April 2015, the Company entered into a joint venture
agreement with Canadian gold explorer Northern
agreement with Canadian gold explorer Northern
Superior Resources Inc. (‘Northern Superior’) giving the
Superior Resources Inc. (‘Northern Superior’) giving the
Company the right to earn a 65% interest in the Croteau
Company the right to earn a 65% interest in the Croteau
Est gold property located near Chibougamau in Quebec.
Est gold property located near Chibougamau in Quebec.
Under the Croteau Est agreement, Chalice can earn a
Under the Croteau Est agreement, Chalice can earn a
65% interest in the property by spending a total of
65% interest in the property by spending a total of
C$4 million on exploration over three years, with a
C$4 million on exploration over three years, with a
minimum exploration commitment of $500,000 in the
minimum exploration commitment of $500,000 in the
first 12 months. Upon earning a 65% interest, the joint
first 12 months. Upon earning a 65% interest, the joint
venture would become a contributing joint venture
venture would become a contributing joint venture
containing a standard dilution calculation.
containing a standard dilution calculation.
The property is located close to a number of historical
The property is located close to a number of historical
copper-gold mines in the Chapais-Chibougamou region.
copper-gold mines in the Chapais-Chibougamou region.
The project is well serviced by road, rail and air services,
The project is well serviced by road, rail and air services,
offering year-round access, and is located close to grid
offering year-round access, and is located close to grid
power.
power.
Re-logging Historical Core at Cameron Gold Project
CHALICE GOLD MINES | ANNUAL REPORT 2015 4
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6
Operating and Financial Review
The tenement package includes a 25km strike length
of prospective stratigraphy, including 17 targets
requiring follow-up and a significant body of quartz-
carbonate-sericite alteration and pyrite mineralisation
which has been defined as the Croteau Bouchard
Shear Zone (“CBSZ”). An 11 hole (2,511 metre)
diamond drill program and a 46 hole (485 metre) RC
drill program was carried out over the 2015 summer.
The results from this program are currently being
compiled and interpreted.
GEOCRYSTAL LIMITED – WEBB DIAMOND
PROJECT, AUSTRALIA (23% EQUITY INTEREST,
34% IF ALL OPTIONS WERE EXERCISED)
Chalice has a 23% interest (with share options to
increase its interest to 34%) in unlisted diamond
explorer, GeoCrystal Ltd (“GeoCrystal”). GeoCrystal
has now a 75% interest in the Webb Diamond Project
via a joint venture with ASX-listed explorer Meteoric
Resources Ltd (“Meteoric”). During the financial year,
GeoCrystal carried out loam sampling and an RC drill
program which confirmed the presence of numerous
kimberlite bodies, however, no diamonds have been
recovered to date from the kimberlite bodies.
BALAGUNDI PROJECT, AUSTRALIA
During the year ended 30 June 2015, Chalice entered
into an exploration Joint Venture with Alphabrass
Resources Pty Ltd (‘Alphabrass’) targeting Archean
volcanogenic massive sulphide (VMS) mineralisation.
RC drilling was undertaken in December 2014. Results
were not compelling and in January 2015, Chalice
withdrew from the project.
MOGORAIB NORTH PROJECT, ERITREA (60%
CHALICE, 40% ENAMCO)
As part of an orderly exit from exploration activities in
Eritrea, the remaining plant and equipment owned by
the Mogoraib North Joint Venture (Chalice 60%,
ENAMCO 40%) was sold during the financial year, and
proceeds of $449,000 were received (Chalice’s share).
GNAWEEDA PROJECT, AUSTRALIA (12%
CHALICE, 88% DORAY MINERALS LIMITED)
Chalice has a 12% contributing joint venture interest in
the Gnaweeda Project in the northern Murchison
region of Western Australia with Doray Minerals
Limited (ASX: DRM) (“Doray”). Recent results from
drilling and ongoing exploration by Doray provides
potential to delineate satellite mining operations for
Doray’s Andy Well Project.
CORPORATE
MINIMUM HOLDING SHARE BUY-BACK
In December 2014, Chalice completed a buy-back of
ordinary shares from holders of unmarketable parcels.
1,780,917 ordinary shares were acquired and
cancelled at a price of 11.5 cents per share. The
unmarketable parcel buy-back resulted in the number
of shareholders being reduced from 3,740 to 1,976.
SHARE BUYBACK
On 3 March 2014, the Company announced an on-
market share buy-back of up to 25,073,088 ordinary
shares as part of a capital management plan over the
next 12 months. During the financial year, the
Company acquired 3,000,000 shares at an average
price of 10 cents per share for a total of approximately
$300,000, taking the number of shares acquired since
inception of the facility, in March 2014 to 13,036,591
shares. The share buy-back facility ceased in March
2015.
FINANCIAL PERFORMANCE
The Group reported a net profit after income tax of
$0.3 million for the year (2014: net loss of $11.6
million) a large part of which is related to foreign
exchange gains ($4.9 million) and interest received
($0.5 million). These were offset by corporate and
administrative expenses ($2.1 million) and business
development and project acquisition costs ($1.8
million).
The $4.9 million net foreign exchange gain (2014: net
loss of $0.6 million) resulted from the impact of
movements in the Australian Dollar against the US
Dollar on the Company’s US Dollar cash balances. At
30 June 2015, the Group had approximately US$27
million cash on hand in US$ denominated bank
accounts.
Corporate administrative expenses of $2.1 million
(2014: $1.9 million) increased due to termination and
redundancy payments made during the year of $0.6
million. Aside from these payments, corporate and
administration costs decreased significantly due to a
concerted effort to reduce overheads.
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CHALICE GOLD MINES | ANNUAL REPORT 2015
7
Operating and Financial Review
The effect of exchange rates on cash and cash
equivalents at 30 June 2015 was a gain of $4.9 million
(2014: loss of $0.6 million). The Company held
approximately US$27 million in US$ denominated bank
accounts at 30 June 2015.
FINANCIAL POSITION
At balance date the Group had net assets of $55.7 million
and an excess of current assets over current liabilities of
$39.2 million. Current assets decreased by 10% to
$40.1 million (2014: $44.6 million). Cash and cash
equivalents decreased by 9.8% to $39.9 million (2014:
$44.2 million). Refer to the statement of cash flows
discussion above for further details regarding the
movements in the 2015 cash balance.
Non-current assets increased by 37% to $16.5 million
(2014: $12 million) mainly due to the increase in
exploration and evaluation assets from $9.1 million in
2014 to $14 million in 2015. The increase in exploration
and evaluation assets of 54% was mainly attributable to
the acquisition of two-thirds or 2% of the NSR relating to
the Cameron Project and a full year of exploration
activities at the Cameron Project.
Current liabilities decreased by 40% to $0.9 million
(2014: $1.5 million) due to the recognition of
CAD$700,000 payable in 2014, for the acquisition of the
Dubenski deposit (at the Cameron Project in Canada).
STATEMENT OF CASH FLOWS
Cash and cash equivalents at 30 June 2015 was $39.9
million (30 June 2014: $44.2 million). The reduction in
cash of $4.3 million is predominately due to:
the acquisition of shares via the on-market
share buyback ($0.5 million);
the acquisition of the Dubenski Gold Deposit
for $0.7 million;
the acquisition of two thirds or 2% of a NSR
related to the Cameron Project for
$2.1 million;
exploration costs of $2.9 million; and
$1.8 million being spent on business
development activities related to assessing
and reviewing projects for acquisition or
investment.
These items are offset by the positive foreign exchange
gain of $4.9 million on the Company’s US$
denominated bank accounts.
In comparison to the 2014 financial year, net cash flows
used in operating activities decreased by 5% from $1.7
million in 2014 to $1.6 million.
Net cash flows from investing activities decreased by
15% from a net outflow of $8.4 million in 2014 to a net
outflow of $7.1 million in 2015. This was mainly due to
an overall reduction of costs associated with business
development and exploration activities.
Net cash used in financing activities decreased by
$1 million (66.02%) due to a reduction in the number of
shares acquired under the share buy-back facility in
2015.
CHALICE GOLD MINES | ANNUAL REPORT 2015 6
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Mineral Resources Statement
Chalice Gold Mines Limited
Mineral Resources Statement
The Company reviews and reports it mineral resources at least annually. The date of reporting is 30 June each year, to coincide
with the Company’s end of financial year balance date. If there are any material changes to its mineral resources over the course
of the year, the Company is required to report these changes.
On 29 July 2014, the Company issued a Technical Report and mineral resources statement on the Company’s Cameron Gold
Project in Canada. The report was prepared in accordance with Canadian National Instrument 43-101 and JORC Code (2012
Edition).
In completing the annual review for the year ended 30 June 2015, the historical resource factors were reviewed and found to be
relevant and current, therefore, there were no changes to the mineral resources as stated on 29 July 2014. The Cameron Gold
Project is not an active mining operation and hence no resource depletion has occurred during the review period. Furthermore,
exploration work carried out during the year of review has not resulted in a change to the reported mineral resources.
The Cameron Gold Project mineral resource is set out in the table below.
Deposit
Description
Cut-off Gold g/t Class
Tonnes
Gold g/t
Gold oz
Cameron
Open Cut
RL>=750m
0.50g/t
Underground
1.75g/t
RL<750m
Dubenski
Open Cut
RL>=180m
1.00g/t
Dogpaw
Open Cut
RL>=210m
0.50g/t
Total
Measured
Indicated
2,872,000
5,417,000
Meas+Indicated
8,289,000
Inferred
Measured
Indicated
881,000
157,000
559,000
Meas+Indicated
716,000
Inferred
Measured
Indicated
5,709,000
806,000
Meas+Indicated
806,000
Inferred
Measured
Indicated
392,000
247,000
Meas+Indicated
247,000
Inferred
Measured
Indicated
64,000
3,029,000
7,029,000
Meas+Indicated
10,058,00
Inferred
7,046,000
2.30
1.76
1.95
2.07
2.77
3.23
3.13
2.78
2.28
2.28
1.44
3.02
3.02
2.26
2.33
1.98
2.09
2.61
213,000
307,000
520,000
59,000
14,000
58,000
72,000
510,000
59,000
59,000
18,000
24,000
24,000
4,000
227,000
448,000
675,000
591,000
*Mineral resources are not ore reserves and do not have demonstrated economic viability. All figures are rounded to nearest thousand to reflect the
relative accuracy of the estimate.
Table 1- Cameron Gold Project Mineral Resource (ASX release 29 July 2014)
At the date of this report, approximately 103,000m of diamond drill core has been re-logged with approximately 30,000m re-
sampled, largely from within the mineral resource envelopes. The re-logging and re-sampling exercise was completed in
September 2015, and the data collected will be used to model a new mineral resource. As the results of this program are currently
being compiled and a new mineral resource estimate is in progress; until this estimate is complete, the impact on the mineral
resources (refer table 1) cannot be determined.
Governance Arrangements and Internal Controls
The Company has ensured that the mineral resources quoted are subject to good governance arrangements and internal controls.
The mineral resources reported have been generated by Mr Peter Ball of Datageo Geological Consultants, an independent external
consultant who is experienced in this style of gold deposit and who undertakes best practices in modelling and estimation
methods. The consultant has also undertaken reviews of the quality and suitability of the underlying information used to generate
the resource estimation. In addition, Chalice’s management carries out regular reviews and audits of internal processes and
external consultants that have been engaged by the Company.
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CHALICE GOLD MINES | ANNUAL REPORT 2015
9
COMPETENT PERSON AND QUALIFYING PERSON STATEMENTS
The information in this report that relates to Exploration Results in relation to the Cameron Gold Project and the Croteau Est Project is based
on information compiled by Mr Gary Snow, who is a Fellow of the Australasian Institute of Mining and Metallurgy and is a Fellow of the
Australian Institute of Geoscientists. Mr Snow is a full-time employee of the company and has sufficient experience in the field of activity being
reported to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Minerals
Resources and Ore Reserves, and is a Qualified Person under National Instrument 43-101 – ‘Standards of Disclosure for Mineral Projects’. The
Qualified Person has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained
in this release. Mr Snow consents to the release of information in the form and context in which it appears here.
The information relating to the Cameron Gold Project mineral resource is extracted from the ASX Announcement entitled “Chalice Files Updated
43-101 Technical Report” released on 29 July 2014 and is available to view at www.chalicegold.com. Other than as outlined in this report the
company confirms that it is not aware of any new information or data that materially affects the information included in the original market
announcement and, in the case of estimates of mineral resources, that all material assumptions and technical parameters underpinning the
estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and
context in which the Competent Person’s findings are presented have not materially modified from the original market announcement.
The information relating to the Croteau Est Project is extracted from the ASX Announcement entitled “Chalice expands North American
presence with farm-in deal on advanced and highly prospective Canadian gold project” released on 22 April 2015 and is available to view at
www.chalicegold.com. The company confirms that it is not aware of any new information or data that materially affects the information
included in the original market announcement and, in the case of estimates of Mineral Resources that all material assumptions and technical
parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The
Company confirms that the form and context in which the Competent Person’s findings are presented have not materially modified from the
original market announcement.
FORWARD LOOKING STATEMENTS
This document may contain forward-looking information within the meaning of Canadian securities legislation and forward-looking statements
within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, forward-looking statements). These
forward-looking statements are made as of the date of this document and Chalice Gold Mines Limited (the Company) does not intend, and does
not assume any obligation, to update these forward-looking statements.
Forward-looking statements relate to future events or future performance and reflect Company management’s expectations or beliefs regarding
future events and include, but are not limited to, statements regarding the impact of additional logging and sampling at the Cameron Project on
mineral resources, the results of drilling at Croteau Est on any mineral resource estimate, the impact of potential material reductions in costs on
the economics of a future PEA at the Cameron Project, the results of business development activities which may result in a corporate transaction
or investment, the estimation of mineral reserve and mineral resources, the realisation of mineral reserve estimates, the likelihood of exploration
success, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, ,
environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage.
In certain cases, forward-looking statements can be identified by the use of words such as plans, expects or does not expect, is expected, will,
may would, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate, or believes, or variations of such words and
phrases or statements that certain actions, events or results may, could, would, might or will be taken, occur or be achieved or the negative of
these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking statements. Such factors may include, among others, risks related
to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral
resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays
in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed
from time to time in the Company’s interim and annual financial statements and management’s discussion and analysis of those statements, all
of which are filed and available for review on SEDAR at sedar.com. Although the Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that
cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking statements.
CHALICE GOLD MINES | ANNUAL REPORT 2015 8
10
Tenement Schedules
Chalice Gold Mines Limited
Tenement Schedules
Location
Project
Australia
Gnaweeda
Project
Tenement
No.
E51/0926
E51/0927
Canada
Refer annexure A.
Registered Holder
Nature of interest
Chalice Gold Mines Limited and
Teck Australia Pty Ltd
Chalice Gold Mines Limited and
Teck Australia Pty Ltd
12.03%
12.03%
9
CHALICE GOLD MINES | ANNUAL REPORT 2015
12
Annexure A
Tenements Held (Canada)
Tenement Type
Patent, Pin Number
Claim Number
Registered Holder
Percentage Ownership
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
4283921
4283922
4283923
4283924
4283925
4283926
4283927
4283928
4283929
4283930
4283931
4283932
4283933
4283934
4283935
4283936
4283937
4283938
4283939
4283940
4283941
4283942
4283943
4283944
4283945
4283946
4283947
4283948
4283949
4283950
1105444
1105445
1161574
1161575
1210120
1210121
1210122
1210123
1210124
1210125
1210126
1210128
1210129
1210130
1210131
1210132
1210133
1210134
1210135
1210136
4248906
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Project
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
CHALICE GOLD MINES | ANNUAL REPORT 2015
10
Annexure A
Tenements Held (Canada)
Project
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Tenement Type
Patent, Pin Number
Claim Number
Registered Holder
Percentage Ownership
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Patented mining
claim
Patented mining
claim
Patented mining
claim
4254297
4255667
4255668
4255669
4257392
4258281
4258282
4258283
4258284
4258285
4258286
4258287
4258288
4258289
4258290
4258291
4258292
4258421
4258422
4258423
4258424
4258425
4258426
4258427
4258428
4258429
4258430
4258431
4258432
4258433
4258434
4258435
4258436
4258437
4258438
4258439
4258440
4258441
4258442
4258443
4258444
4258445
4258446
4258447
4258448
4258449
4258450
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
PA8441, 42185-0720 (LT)
K2766
Cameron Gold Operations Ltd
PA8442, 42185-0722 (LT)
K2767
Cameron Gold Operations Ltd
PA8443, 42185-0724 (LT)
K2768
Cameron Gold Operations Ltd
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
11
CHALICE GOLD MINES | ANNUAL REPORT 2015
Annexure A
Tenements Held (Canada)
Patent, Pin Number
Claim Number
Registered Holder
Percentage Ownership
Project
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Cameron
Tenement Type
Patented mining
claim
MLO
MLO
MLO
MLO
MLO
MLO
PA9901, 42185-0726 (LT)
10384
10405
10406
10407
3366
3367
Cameron
Mining Lease
108466
Cameron
Mining Lease
108400
Cameron
Mining Lease
108400
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
West Cedar
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Patented mining
claim
Patented mining
claim
Patented mining
claim
Patented mining
claim
Patented mining
claim
Patented mining
claim
Patented mining
claim
Patented mining
claim
Patented mining
claim
Patented mining
claim
Patented mining
claim
Patented mining
claim
Patented mining
claim
Patented mining
claim
Patented mining
claim
Patented mining
claim
Patented mining
claim
Patented mining
claim
Patented mining
claim
Patented mining
claim
42185-0208 (LT)
42185-0586 (LT)
42185-0585 (LT)
42185-0577 (LT)
42185-0587 (LT)
42185-0578 (LT)
42185-0579 (LT)
42185-0583 (LT)
42185-0796 (LT)
42185-0799 (LT)
42185-0801 (LT)
42185-0803 (LT)
42185-0593 (LT)
42185-0594 (LT)
42185-0595 (LT)
42185-0588 (LT)
42185-0584 (LT)
42185-0580 (LT)
42185-0807 (LT)
42185-0581 (LT)
West Cedar
MLO
11143
K4712
K4709
K4711
K4710
K4712
K2767
K2768
CLM289. Claims K527548-
K527567, Nucanolan Property
CLM305. Claim K465069-
K465075, K465351-K465358,
K519950-K519965, K561022-
K561025, K666295
CLM306, Claim K386816-
K386818, K386888-K386900,
K533901-K533908, K666294
3000802
3000803
3000804
1149862
1196649
3001240
3001298
3010497
3012199
K9990
K9991
K9992
K9993
K9994
K9995
K9997
K10010
K10024
K10025
K10026
K10027
K10028
K10029
K10030
K9996
K10011
K10058
K10000
K9999
K9990, K9992, K9993, K9996,
K9999, K10000, K10011,
K10058
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Inc.
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
CHALICE GOLD MINES | ANNUAL REPORT 2015
12
Annexure A
Tenements Held (Canada)
Project
Tenement Type
Patent, Pin Number
Claim Number
Registered Holder
Percentage Ownership
West Cedar
Mining Lease
107495
West Cedar
Mining Lease
107494
K314926, K351875-K351876,
K314928-K314931, K273821
K314927, K314932, K351873,
K351874, K351877, K351878
Cameron Gold Operations Ltd
Cameron Gold Operations Ltd
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
4276513
4276514
4276515
4276516
4276517
4276518
4276519
4276522
4276523
4267651
4267652
4283119
4283120
4283731
4283732
4283734
4267653
4267654
4267655
4267656
4267657
4283735
4283736
4283737
4283738
4276506
4276512
4283111
4283112
4283113
4283114
4283115
4283116
4283117
4283118
4274088
4274089
4274090
4274091
4274092
4274093
4274094
4274095
4274096
4274074
4276500
1022635
1022636
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Pele Gold Corporation
Pele Gold Corporation
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Cameron Gold
Ardeen
Ardeen
13
100%
100%
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
Earning in, Option agreement
51%
51%
CHALICE GOLD MINES | ANNUAL REPORT 2015
Project
Tenement Type
Patent, Pin Number
Claim Number
Registered Holder
Percentage Ownership
Annexure A
Tenements Held (Canada)
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
1022637
1135465
1135466
1157496
1157497
1157666
1157667
1157668
1157670
1157671
1164874
1164875
1164876
1164877
1172315
1172316
1172317
1172340
1172345
1172346
1172347
1172348
1172349
1172350
1172355
1172356
1172365
1172366
1172367
1172368
1172369
1172375
1172385
1172386
1172387
1172388
1172395
1172396
1195937
1195940
1196147
1196239
1196240
1196870
1196921
1196923
1196924
1202036
1202264
1202265
1202302
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
CHALICE GOLD MINES | ANNUAL REPORT 2015
14
Annexure A
Tenements Held (Canada)
Project
Tenement Type
Patent, Pin Number
Claim Number
Registered Holder
Percentage Ownership
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
15
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
1205201
1205202
1205203
1205204
1205287
1209440
1209441
1209470
1209697
1209698
1209770
1210243
1210245
1210776
1210792
1215147
1215148
1215149
1215450
1215451
1215452
1215453
1215454
1215751
1215752
1215758
1215760
1215831
1215859
1217105
1224629
3001505
3001506
3001507
677468
677469
677470
677471
677472
677473
677474
677475
677476
677477
677478
677479
786521
786522
786523
786524
786525
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
CHALICE GOLD MINES | ANNUAL REPORT 2015
Project
Tenement Type
Patent, Pin Number
Claim Number
Registered Holder
Percentage Ownership
Annexure A
Tenements Held (Canada)
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
Ardeen
South Cedar
South Cedar
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
786526
786527
786528
786529
786541
786542
786543
786544
786545
813157
813158
813159
813160
813161
813162
813163
813164
813165
813166
835178
835179
835184
835185
835186
835187
835188
835189
835190
835195
835196
835197
835304
835305
835306
835307
835308
835309
835310
835311
835312
835313
863760
873515
873516
873517
873518
873519
873520
873522
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
Pele Gold Corporation
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
4257501
4257508
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Earning in, option agreement
Earning in, option agreement
CHALICE GOLD MINES | ANNUAL REPORT 2015
16
Annexure A
Tenements Held (Canada)
Project
Tenement Type
Patent, Pin Number
Claim Number
Registered Holder
South Cedar
South Cedar
South Cedar
South Cedar
South Cedar
South Cedar
West Cedar
South Cedar
South Cedar
South Cedar
South Cedar
South Cedar
South Cedar
South Cedar
South Cedar
Rainy River
Rainy River
Rainy River
Rainy River
Rainy River
Rainy River
Rainy River
Rainy River
Rainy River
Rainy River
Rainy River
Rainy River
Rainy River
Rainy River
Rainy River
Rainy River
Rainy River
South Cedar
Rainy River
Rainy River
Rainy River
Rainy River
Rainy River
Rainy River
Rainy River
Rainy River
Rainy River
Rainy River
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
4257510
4257511
4257515
4257516
4257517
4260366
4260514
4266944
4260515
4260516
4263609
4272273
4266941
4266942
4266943
4254475
4254476
4254477
4254478
4254479
4260559
4260560
4260561
4260562
4260563
4260564
4260565
4214439
4214438
4214440
4214441
4214442
4254638
4205814
4205815
4205816
4205817
4205818
4250319
4205809
4267981
4267983
4267982
2188150
2188151
2188152
2188153
2188154
2188155
2188156
2311841
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Coventry Resources Ontario Inc.
Coventry Resources Ontario Inc.
Coventry Resources Ontario Inc.
Coventry Resources Ontario Inc.
Coventry Resources Ontario Inc.
Coventry Rainy River Inc.
Coventry Rainy River Inc.
Coventry Rainy River Inc.
Coventry Rainy River Inc.
Coventry Rainy River Inc.
Coventry Rainy River Inc.
Coventry Rainy River Inc.
Coventry Rainy River Inc.
Coventry Rainy River Inc.
Coventry Rainy River Inc.
Coventry Rainy River Inc.
Coventry Rainy River Inc.
Rubicon Minerals Corp.
Coventry Rainy River Inc.
Coventry Rainy River Inc.
Coventry Rainy River Inc.
Coventry Rainy River Inc.
Coventry Rainy River Inc.
Coventry Rainy River Inc.
Coventry Rainy River Inc.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Rubicon Minerals Corp.
Percentage Ownership
Earning in, option agreement
Earning in, option agreement
Earning in, option agreement
Earning in, option agreement
Earning in, option agreement
Earning in , option agreement
Earning in , option agreement
Earning in , option agreement
Earning in , option agreement
Earning in , option agreement
Earning in , option agreement
Earning in , option agreement
Earning in , option agreement
Earning in , option agreement
Earning in , option agreement
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Earning in, option agreement
100%
100%
100%
100%
100%
100%
100%
Earning in, option agreement
Earning in, option agreement
Earning in, option agreement
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
17
CHALICE GOLD MINES | ANNUAL REPORT 2015
Project
Tenement Type
Patent, Pin Number
Claim Number
Registered Holder
Percentage Ownership
Annexure A
Tenements Held (Canada)
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
2311842
2311843
2311844
2311845
2311846
2311847
2311848
2311849
2311850
2311851
2311852
2315945
2315946
2315947
2315948
2315949
2315950
2315951
2315952
2315953
2315954
2315955
2315956
2315957
2315958
2315959
2319367
2319368
2324226
2324227
2324228
2324229
2324230
2324231
2324232
2324233
2324234
2324235
2324236
2324237
2324238
2324239
2324240
2255946
2255947
2255948
2255949
2255950
2255951
2255952
2255953
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
CHALICE GOLD MINES | ANNUAL REPORT 2015
18
Annexure A
Tenements Held (Canada)
Project
Tenement Type
Patent, Pin Number
Claim Number
Registered Holder
Percentage Ownership
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
2255954
2255955
2255956
2255959
2255960
2255961
2255962
2255963
2255964
2255965
2255966
2255967
2255968
2255974
2255975
2255976
2255977
2255978
2255979
2255980
2256044
2256045
2256072
2256073
2256074
2256075
2256076
2256077
2256078
2256079
2256080
2256081
2256082
2256083
2256084
2256087
2256088
2256089
2256090
2256091
2256092
2256095
2256096
2256097
2256098
2256099
2256100
2256103
2256104
2256105
2256106
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
19
CHALICE GOLD MINES | ANNUAL REPORT 2015
Project
Tenement Type
Patent, Pin Number
Claim Number
Registered Holder
Percentage Ownership
Annexure A
Tenements Held (Canada)
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
2256107
2256108
2258329
2258330
2258331
2258332
2258333
2258334
2258335
2258336
2258337
2258338
2258339
2258340
2258341
2258342
2258343
2258344
2258345
2258349
2258350
2258351
2258352
2258353
2258354
2258355
2258356
2258357
2258358
2258359
2258360
2258361
2258362
2258363
2258364
2258365
2258366
2258367
2258368
2258369
2258370
2258371
2258372
2258373
2258374
2258375
2258376
2258377
2258378
2258385
2258386
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
CHALICE GOLD MINES | ANNUAL REPORT 2015
20
Annexure A
Tenements Held (Canada)
Project
Tenement Type
Patent, Pin Number
Claim Number
Registered Holder
Percentage Ownership
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
2258387
2258388
2258389
2379575
2379576
2379577
2379578
2379579
2379580
2299232
2299233
2299234
2302674
2302675
2302676
2305054
2307534
2307535
2307536
2307537
2307538
2307539
2308046
2308047
2308048
2308049
5281268
5281269
5281270
5281271
5281272
5281273
5281274
5281275
5281276
5281277
5281278
5281279
5281280
5281281
5281282
5281283
5281284
5281285
5281286
5281287
5281288
5281289
5281290
5281291
5281292
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
21
CHALICE GOLD MINES | ANNUAL REPORT 2015
Project
Tenement Type
Patent, Pin Number
Claim Number
Registered Holder
Percentage Ownership
Annexure A
Tenements Held (Canada)
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
5281293
5281294
5281295
5281296
5281297
5281298
5281299
5281300
5281301
5281302
5281304
5281305
5281306
5281308
5281309
5281310
5281311
5281312
5281314
5281315
5281316
5281317
5281318
5281319
5281320
5281321
5281322
5281323
5281324
5281325
5281326
5281327
5281328
5281329
5281330
5281331
5281332
5281333
5281334
5281335
5281336
5281337
5281338
5281339
5281340
5281341
5281342
5281343
5281344
5281346
5281347
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
CHALICE GOLD MINES | ANNUAL REPORT 2015
22
Annexure A
Tenements Held (Canada)
Project
Tenement Type
Patent, Pin Number
Claim Number
Registered Holder
Percentage Ownership
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
5281348
5281349
5281350
5274521
5274522
5274523
5274524
5274525
5274526
5274527
5274528
5279956
5279957
5279958
5279959
5279960
5279961
5279962
5279963
5279964
5279965
5279966
5279967
5279968
5279969
5279970
5279971
5279972
5279973
5279974
5279975
5279976
5279977
5279978
5279979
5279980
5279981
5279982
5279983
5279984
5279985
5279986
5279987
5279988
5279989
5279990
5279991
5279992
5279993
5279994
5279995
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
23
CHALICE GOLD MINES | ANNUAL REPORT 2015
Annexure A
Tenements Held (Canada)
Project
Tenement Type
Patent, Pin Number
Claim Number
Registered Holder
Percentage Ownership
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
Croteau Est
Mining Claim
5281345
5281351
5281368
5281369
5281370
5281352
5281353
5281357
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
Northern Superior Resources Inc. (81897) 100%
JV earning up to 65%
CHALICE GOLD MINES | ANNUAL REPORT 2015
24
Directors’ Report
Chalice Gold Mines Limited
Directors’ Report
The Directors present their report together with the financial report of Chalice Gold Mines Limited (‘Chalice’ or ‘the
Company’) and its subsidiaries (together ‘the Group’) for the financial year ended 30 June 2015 and the independent
auditor’s report thereon. The names and details of the Company’s directors in office during the financial year and until the
date of this report are as follows. Directors were in office for the entire period unless otherwise stated.
1. Directors
Anthony (Tony) W Kiernan
LLB
Non-executive Chairman
Timothy (Tim) R B Goyder
Managing Director
Stephen P Quin
PGeo, FGAC, FSEG, MIOM3
Independent Non-executive
Director
William B Bent
MBA, AusIMM, IChemE
Managing Director
Douglas A Jones
PhD, AusIMM, CPGeo
Executive Director
Tony, previously a practising lawyer, is a corporate advisor with extensive experience in
the administration and operation of listed public companies. He is the Chairman of BC
Iron Limited, Venturex Resources Limited and is a director of Danakali Limited (previously
South Boulder Mines Limited), all listed on ASX. During the past three years, Tony was a
director of ASX listed Uranium Equities Limited and Liontown Resources Limited. Tony
was appointed Chairman on 10 October 2014, and previously held the position of Non-
executive Director.
Tony is Chairman of the Audit Committee and Remuneration Committee and has been a
director since 2007 (8 years).
Tim has considerable experience in the resource industry as an executive and
investor. He has been involved in the formation and management of a number of
publicly-listed and private companies and is currently Chairman of Uranium Equities
Limited and Liontown Resources Limited, both listed on ASX. During the past three years
Tim also served as a director of Strike Energy Limited.
Tim has been a director since 2005 (10 years) and was appointed Managing Director on
10 October 2014. Tim previously held the position of Executive Chairman.
Stephen is a geologist with over 35 years’ experience in the mining and exploration
industry. Stephen is based in Vancouver, Canada, and has been the President & CEO of
Midas Gold Corp. and its predecessor since January 2011. Stephen was previously
President and COO of TSX listed copper producer Capstone Mining Corp. and, up until its
merger with Capstone, President and CEO of TSX listed copper producer Sherwood
Copper Corp. Prior to joining Sherwood, Stephen spent 18 years as Vice President and
subsequently Executive Vice President of TSX listed Miramar Mining Corporation, a
Canadian focused gold producer and developer. Stephen has extensive experience in the
resources sector, and in the financing, development and operation of production
companies.
Stephen is a member of the Audit Committee and Remuneration Committee and has
been an independent non-executive director since 2010 (5 years).
Bill was appointed Managing Director in February 2013 and resigned from the position
and as a director on 10 October 2014.
Doug was a director from 2008 until resigning on 10 October 2014.
25
CHALICE GOLD MINES | ANNUAL REPORT 2015
37
Chalice Gold Mines Limited
Directors’ Report
2.
Chief Financial Officer and Company Secretary
Directors’ Report
Richard K Hacker
B.Com, ACA, ACIS
Chief Financial Officer
Richard is a Chartered Accountant and Chartered Secretary with over 20 years of
professional and corporate experience in the energy and resources sector in Australia
and the United Kingdom. Richard has previously worked in senior finance roles with
global energy companies including Woodside Petroleum Limited and Centrica Plc. Prior
to this, Richard was in private practice with major accounting practices. Richard is a
director of ASX listed Uranium Equities Limited and resigned from the position of
Company Secretary on 15 October 2014.
Leanne Stevens
B.Com, CA, ACIS
Company Secretary
Leanne is a Chartered Accountant who has 13 years of accounting and governance
experience within the mining and energy industries. Leanne is also Company Secretary
of ASX Listed Liontown Resources Limited. Leanne has been Company Secretary of
Chalice since 2012.
3.
Directors’ meetings
The number of meetings of directors (including meetings of committees of directors) held during the year and the
number of meetings attended by each director were as follows:
Directors’ Meetings
Audit
Remuneration
Nomination
Number of meetings held:
Number of meetings
attended:
A W Kiernan
T R B Goyder
S P Quin
W B Bent1
D A Jones1
6
5
6
6
2
2
2
2
-
2
-
-
2
2
-
2
-
-
-
-
-
-
-
-
1Two directors’ meetings were held while Mr Bent and Mr Jones were in office.
The Company has an audit committee and a separate remuneration committee. The nomination committee comprises the
full membership of the board of directors. Members acting on the committees during the year were:
Audit
A W Kiernan (Chairman)
Remuneration
A W Kiernan (Chairman)
Nomination
Full Board
S P Quin
S P Quin
4.
Principal activities
The principal activities of the Company during the year were mineral exploration and evaluation. There has been no
significant changes in the nature of these activities during the year.
5.
Operating and financial review
The directors of Chalice Gold Mines Limited present the Operating and Financial Review of the Group, prepared in
accordance with section 299A of the Corporations Act 2001 for the year ended 30 June 2015. The information provided in
this review forms part of the Directors’ Report and provides information to assist users in assessing the operations, financial
position and business strategies of the Group. Please refer to page 2 for further details.
CHALICE GOLD MINES | ANNUAL REPORT 2015
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Directors’ Report
Chalice Gold Mines Limited
Directors’ Report
6.
Significant changes in state of affairs
Other than the progress documented above, the state of affairs of the Company was not affected by any other significant
changes during the year.
7.
Remuneration report – audited
This report for the year ended 30 June 2015 outlines remuneration arrangements in place for directors and executives of
Chalice Gold Mines Limited in accordance with the requirements of the Corporations Act 2001 (the “Act”) and its
regulations. This information has been audited as required by section 308 (3C) of the Act.
7.1 Message from the Board
The Company’s remuneration policy is structured to ensure it is aligned to the business strategy, shareholder interests and
to ensure effective executive remuneration and retention. These objectives are designed to be achieved through the
Company’s short term and long term incentive plans which link the achievement of these objectives to the variable
compensation of the Managing Director and staff. Further details are provided in this report.
7.2
Introduction
The remuneration report details the remuneration arrangements for Key Management Personnel (‘KMP’) who are defined
as those individuals who have the authority and responsibility for planning, directing and controlling the activities of the
Company and the Group directly or indirectly. The following were the KMP for the Group at any time during the year:
Anthony Kiernan
Tim Goyder
William Bent
Douglas Jones
Stephen Quin
Gary Snow
Richard Hacker
Chairman (Non-executive Director to 10 October 2014)
Managing Director (Executive Chairman to 10 October 2014)
Managing Director (resigned 10 October 2014)
Executive Director (resigned 10 October 2014)
Non-executive Director
Chief Operating Officer (commenced 13 October 2014)
Chief Financial Officer
There were no changes in KMP after the reporting date and before the financial report was authorised for issue.
7.3
Principles of compensation
7.3.1 Remuneration governance
Remuneration committee
The Board is responsible for ensuring Chalice’s remuneration strategy is aligned with Company performance and
shareholder interests and is equitable for participants. To assist with this, the Board has established a Remuneration
Committee consisting of the following directors:
Anthony Kiernan (Chairman)
Stephen Quin
The Remuneration Committee has delegated decision-making authority for some matters related to the remuneration
arrangements for KMP, and is required to make recommendations to the Board on other matters.
Specifically, the Board approves the remuneration arrangements of the Managing Director and other executives including
awards made under the Short Term Incentive Plan (“STIP”) and Employee Long Term Incentive Plan (“ELTIP”), following
recommendations from the Remuneration Committee. The Board also sets the aggregate fee pool for NEDs (which is
subject to shareholder approval) and NED fee levels.
The Remuneration Committee meets through the year when appropriate. The Managing Director may attend certain
Remuneration Committee meetings by invitation, where management input is required. The Managing Director is not
present during any discussions related to his own remuneration arrangements.
Further information on the Remuneration Committee’s role, responsibilities and membership can be seen at
www.chalicegold.com.
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CHALICE GOLD MINES | ANNUAL REPORT 2015
Chalice Gold Mines Limited
Directors’ Report
Use of remuneration consultants
Directors’ Report
To ensure the Remuneration Committee is fully informed when making remuneration decisions, the Remuneration
Committee may seek external advice, as it requires, on remuneration policies and practices. Remuneration consultants are
able to be engaged by, and report directly to, the Committee. In selecting remuneration consultants, the Committee would
consider potential conflicts of interest and independence from the Group’s key management personnel and other
executives. During the financial year, the Remuneration Committee did not seek specific advice and recommendations
from external consultants.
Remuneration report approval at 2014 Annual General Meeting
The Remuneration Report for the financial year ended 30 June 2014 received positive shareholder support at the 2014
Annual General Meeting (‘AGM’) with a vote of 98.9% in favour.
7.3.2 Remuneration principles and components of remuneration
The Company has adopted the following principles in its remuneration framework:
1.
2.
Seeking aggregate remuneration at a level which provides the Company with the ability to attract and retain
directors and executives of high calibre at a cost which is acceptable to shareholders; and
Key management personnel interest being aligned with shareholder value and Company performance by:
providing fair, consistent and competitive compensation and rewards to attract and retain appropriate
employees;
ensuring that total remuneration is competitive with its peers by market standards;
incorporating in the remuneration framework both short and long term incentives linked to the strategic goals
and performance of the individuals and the Company and shareholder returns;
demonstrating a clear relationship between individual performance and remuneration; and
motivating employees to pursue and achieve the long term growth and success of the Company.
The following table is an overview of the components of remuneration:
Fixed remuneration
Variable remuneration
Element
Base salary
Base fee
Committee fees
Superannuation
Consultancy fees
Other benefits
Short term incentives (STI)
Share options
Performance rights
Non-executive
directors
×
#
##
×
###
×
Executives
×
×
×
Only applies to Australian non-executives.
Some directors are paid consultancy fees on an arm’s length basis (refer below).
#
##
### Non-executive directors are eligible to participate in the share option plan at the discretion of the Board subject to
shareholder approval where required (refer below for further details).
7.3.3 Non-executive director remuneration
The Company’s Constitution and the ASX Listing Rules specify that the maximum aggregate fees to be paid to non-executive
directors for their roles as directors are to be approved by shareholders at a general meeting. The latest determination was
at the 2011 AGM, whereby Shareholders approved a maximum aggregate amount of $450,000 per year (including
superannuation). The Board does not propose to seek any increase for the non-executive director pool at the upcoming
2015 Annual General Meeting.
The fee structure for non-executive directors is reviewed annually and the Remuneration Committee and the Board may
consider advice from external consultants, and undertake comparative analyses of the fees paid to non-executive directors
CHALICE GOLD MINES | ANNUAL REPORT 2015
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Directors’ Report
Chalice Gold Mines Limited
Directors’ Report
of comparable companies in the resources sector with similar market capitalisations. Generally, the Company will position
itself within the 50th and 75th percentile band of the comparative market data.
For the 2015 financial year, a non-executive director (excluding the Chairman) receives a fee of $60,000 (inclusive of
superannuation, where applicable) and the Chairman receives a fee of $80,000 (inclusive of superannuation). Members of
the Audit Committee and Remuneration Committee also receive an additional $5,000 for their roles on each of those
Committees. The additional payments recognise the additional time commitment by non-executive directors who serve on
committees.
The non-executive directors are not entitled to receive retirement benefits. Non-executive directors, at the discretion of
the Board, may participate in the Employee Share Option Plan (“ESOP”), subject to approvals required by shareholders.
The Board is conscious of the issue of share options to non-executive directors and will continue to balance the cost benefit
of issuing share options to attract and retain quality directors against paying higher fixed directors’ fees.
Non-executive directors are not eligible to participate in the Company’s Long Term Incentive Plan (“LTIP”).
Apart from their duties as directors, non-executive directors may undertake additional work for the Company on a
consultancy basis on market terms. The use of consultancy by non-executive directors in addition to their duties as directors
enables the Company to better utilise the skills offered by the Board particularly in light of the Company’s current small
management team. Under the terms of these consultancy agreements, non-executive directors typically receive a daily rate
or monthly retainer for the work performed at a rate comparable to market rates that they would otherwise receive for
their consultancy services.
The remuneration of non-executive directors for the years ended 30 June 2015 and 30 June 2014 is detailed further in this
Remuneration Report. The amounts listed under ‘Salary & Fees’ includes both director fees and consultancy fees received
by non-executive directors.
7.3.4 Executive remuneration
Executive remuneration consists of fixed remuneration and may also comprise variable remuneration in the form of
performance based cash bonuses (Short Term Incentive Plan (“STIP”)), share options and performance rights (issued under
the terms of the ESOP and Long Term Incentive Plan (“LTIP”) respectively). The LTIP was approved by the Company’s
shareholders at the 2014 AGM. The structure of the plan is detailed below.
(a) Fixed remuneration
The level of fixed remuneration is set to provide a base level of remuneration which is both appropriate for the position
and competitive in the market. The Company aims to pay within the 50th and 75th percentile band of benchmark data, but
the Board has the discretion to pay above this to attract and retain key employees in achieving the Company’s strategic
goals.
Fixed remuneration is reviewed at appropriate times (and no less than on an annual basis) by the Remuneration Committee
and approved by the Board having regard to the Company and individual performance, relevant comparable remuneration
for similarly capitalised companies in the mining industry and independently compiled market data. Executives receive their
fixed remuneration in the form of cash.
The fixed remuneration for executives is detailed further in this Report.
(b) Variable remuneration - STIP
The Board has implemented a formal STIP which includes cash bonuses to executives upon achievement of predefined
targets. The maximum bonus percentage (“MBP”) ranges between 10% and 50% of an executive’s fixed annual salary
depending on the position held and responsibilities to be undertaken. The STIP is based on achieving “Expected” and
“Stretch” targets for the year. Achieving the expected target attracts 20% of the relevant MBP and achieving the stretch
target or better attracts up to 100% of the relevant MBP.
In 2014, the Remuneration Committee recommended to the Board to suspend the STIP and move 100% of eligible KMP’s
incentive entitlements exclusively to the LTIP. The justification for this recommendation being that at this stage of the
Company’s development, all the key business objectives of KMP have longer dated time frames than the STIP’s 12 month
time frame.
Therefore, during the 2015 and 2014 financial year, no cash bonuses were paid to executives.
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Directors’ Report
Directors’ Report
(c) Variable remuneration – employee long term incentive plan (LTIP)
Under the LTIP, the Board has the discretion to make annual awards of performance rights (which is a right to convert into
ordinary shares after achievement of applicable criteria and targets) to executives and employees. The level of the award
of performance rights is dependent on an employee’s position within the Company. Subject to the performance criteria set
out in the terms of the LTIP, performance rights held by an employee may convert into ordinary fully paid shares in the
Company. In the event performance criteria are not achieved by the measurement date, the employee’s performance rights
lapse with no shares being issued.
A summary of the LTIP is set out below:
Key Design Feature
Eligibility
Award quantum
Performance conditions
Design
All full-time employees and permanent part-time employees (including executive
directors and the managing director) of the Company are eligible participants.
Shareholder approval is required before any director or related party of the Company can
participate in the LTIP.
The award quantum will be determined in consideration of total remuneration of the
individual, market relativities and business affordability. The LTIP does not set out a
maximum number of shares that may be issuable to any one person, other than the 5%
limit of the total number of issued shares.
The performance conditions that must be satisfied in order for the performance rights to
vest are determined by the Board. The performance conditions may include one or more
of the following:
employment of a minimum period of time;
achievement of specific objectives by the participant and/or the Company.
This may include the achievement of share price targets and other major
long term milestone targets; or
such other performance objectives as the Board may determine.
Vesting
Term and lapse
Vesting will occur at the end of a defined period, usually three years, and upon the
achievement of the performance conditions.
The term of the performance rights is determined by the Board in its discretion, but will
ordinarily have a three year term up to a maximum of five years. Performance Rights are
subject to lapsing if performance conditions are not met by the relevant measurement
date or expiry dates (if no other measurement date is specified) or if employment is
terminated for cause or in circumstances as described below.
Price Payable by Participant
No consideration.
Cessation of Employment
If an employee leaves the Company prior to the expiration of the relevant vesting period
for a particular award of performance rights, such performance rights would, as a general
rule lapse, except in certain limited defined situations such as disability, redundancy or
death.
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Directors’ Report
Chalice Gold Mines Limited
Directors’ Report
Annual grant of performance rights - 2014/2015
The table below outlines the performance rights that were granted for the 2014/2015 financial year and have not yet
vested.
Annual Award
KMP
Number of Rights
Measurement Date
Vesting Date
2014/2015
G Snow
R Hacker
1,399,775
1,326,693
30 June 2016
30 June 2017
30 June 2016
30 June 2017
The performance rights shown above will not vest (and the underlying shares will not be issued) unless the performance
conditions set by the Board have been satisfied. It is the longer term intention of the Company to use the “standard”
measure of Total Shareholder Return (“TSR”) as the performance measure for the LTIP, where the Company’s TSR would
be compared against that of a comparator group of companies over the selected performance period for each cycle of the
LTIP. However, given the Company’s current strategy and position (i.e. its most significant asset is cash) a comparator group
of companies cannot yet be determined. The Board therefore selected absolute share price as the most appropriate
measure for the above issued performance rights. The number of performance rights that will vest will be solely dependent
on the Company’s share price as at the measurement (or test) dates as per above as compared to share price hurdles
outlined in the following table. The Company’s share price will be calculated on its 60 day VWAP.
For the 2014/2015 annual grant of performance rights, the Remuneration Committee recommended to the Board that
100% of KMPs incentive entitlements are offered via the LTIP and that 50% of the LTIP is to be based on share price and
remaining 50% to be based on achieving key business objectives. The following table outlines key business objectives and
the weightings of the performance condition:
Overall Performance
Condition
Strategic objectives
Specific Performance Conditions
Undertake a significant acquisition: acquire one or more assets
in addition to the Cameron Gold Project with potential to
generate returns above the Company’s internal hurdle rates
based on consensus commodity prices and cost assumptions.
AND/OR
Make a significant new discovery: at the Cameron Gold Project
or any other Projects/Joint Venture acquired by the Company
which shows potential to be economic based on consensus
commodity prices and cost assumptions.
Share price objectives
Below 23 cents
If the 60 Day VWAP as at
the measurement date is:
23 cents
Percentage of granted
performance rights that
will vest if performance
conditions are met
50%
0%
16.5%
Between 23 cents and 38 cents
Above 38 cents
Pro rata between 16.5%
and 50%
50%
In addition to the measurement period of 1 July 2014 to 30 June 2016, a 12 month service period must also be completed
by each KMP, meaning that performance rights will not vest or convert into shares until 30 June 2017 at the earliest.
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CHALICE GOLD MINES | ANNUAL REPORT 2015
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Chalice Gold Mines Limited
Directors’ Report
Directors’ Report
Annual grant of performance rights - 2015/2016
The following performance rights for 2015/2016 have been granted to KMP (*those to Mr Goyder being subject to
shareholder approval at the Company’s 2015 AGM) as follows:
Annual Award
KMP
Number of Rights
Measurement Date
Vesting Date
2015/2016
Tim Goyder*
1,664,707
30 June 2017
30 June 2018
Gary Snow
1,378,826
30 June 2017
30 June 2018
Richard Hacker
1,306,837
30 June 2017
30 June 2018
The performance rights shown above will not vest (and the underlying shares will not be issued) unless the performance
conditions set by the Board have been satisfied. For the 2015/2016 annual grant of performance rights, the Remuneration
Committee recommended to the Board that 100% of KMPs incentive entitlements are offered via the LTIP and that 50% of
the LTIP is to be based on share price and remaining 50% to be based on achieving key business objectives. The following
table outlines key business objectives and the weightings of the performance condition:
Overall Performance
Condition
Strategic objectives
Specific Performance Conditions
Undertake a significant acquisition: acquire one or more assets in
addition to the Cameron Gold Project with potential to generate an
IRR of at least 20% using consensus commodity prices and board
approved cost assumptions.
AND/OR
Value generation at existing assets through:
Making a significant new discovery which shows the potential
to be economic based on consensus commodity prices and
board approved cost assumptions; or
Substantially increasing the Company’s resource base; or
Conducting economic/feasibility studies which show the
potential to generate an IRR of at least 20% using consensus
commodity prices and board approved cost assumptions; or
The sale of an asset(s) at a significant profit.
NB: The determination as to whether the above objectives have been
met will be done by the Board of the Company in a timely manner,
acting reasonably and in good faith.
Share price objectives
Below 15 cents
If the 30 Day VWAP as
at the measurement
date is:
15 cents
Between 15 cents and 30 cents
Above 30 cents
Percentage of granted
performance rights that
will vest if performance
conditions are met
50%
0%
16.5%
Pro rata between 16.5%
and 50%
50%
In addition to the measurement period of 1 July 2015 to 30 June 2017, a 12 month service period must also be completed
by each KMP, meaning that performance rights will not vest or convert into shares until 30 June 2018 at the earliest.
CHALICE GOLD MINES | ANNUAL REPORT 2015
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Directors’ Report
Chalice Gold Mines Limited
Directors’ Report
Chalice Gold Mines Limited
Directors’ Report
(d) Variable remuneration – share option plan
Equity grants to executives have previously been delivered in the form of employee share options under the Company’s
Employee Share Option Plan which was approved by shareholders in 2013. Options are issued at an exercise price
(d) Variable remuneration – share option plan
determined by the Board at the time of issue.
Equity grants to executives have previously been delivered in the form of employee share options under the Company’s
Employee Share Option Plan which was approved by shareholders in 2013. Options are issued at an exercise price
Generally, no performance hurdles were set on options issued to executives. The Company considered that as options were
determined by the Board at the time of issue.
issued at a price in excess of the Company’s current share price (at the date of issue of those options), there was an inherent
performance hurdle as the share price of the Company’s shares had to increase before any reward could accrue to the
Generally, no performance hurdles were set on options issued to executives. The Company considered that as options were
executive.
issued at a price in excess of the Company’s current share price (at the date of issue of those options), there was an inherent
performance hurdle as the share price of the Company’s shares had to increase before any reward could accrue to the
The vesting period for share options is at the discretion of the Board and the expiry date of share options is usually between
executive.
3 and 5 years.
The vesting period for share options is at the discretion of the Board and the expiry date of share options is usually between
Upon cessation of employment, participants have 3 months from the date of cessation to exercise the share options. This
3 and 5 years.
requirement may be waived at the Board’s discretion.
Upon cessation of employment, participants have 3 months from the date of cessation to exercise the share options. This
It is currently the Board’s preference to issue performance rights under the LTIP to KMP rather than share options.
requirement may be waived at the Board’s discretion.
7.3.5 Link between performance and executive remuneration
It is currently the Board’s preference to issue performance rights under the LTIP to KMP rather than share options.
The focus of executive remuneration over the financial year was fixed remuneration and performance rights under the LTIP
7.3.5 Link between performance and executive remuneration
(i.e. growing the value of the Company as reflected through share price) which seeks to ensure that executive remuneration
is appropriately aligned with the business strategy and shareholder interests.
The focus of executive remuneration over the financial year was fixed remuneration and performance rights under the LTIP
(i.e. growing the value of the Company as reflected through share price) which seeks to ensure that executive remuneration
The share price performance over the last 5 years, adjusted to reflect the capital return of 10 cents per share in 2012, is as
is appropriately aligned with the business strategy and shareholder interests.
follows:
The share price performance over the last 5 years, adjusted to reflect the capital return of 10 cents per share in 2012, is as
follows:
Share price
30 June 2013
$0.16
30 June 2015
$0.11
30 June 2011
$0.23
30 June 2014
$0.15
30 June 2012
$0.10
Share price
30 June 2011
$0.23
30 June 2012
$0.10
30 June 2013
$0.16
30 June 2014
$0.15
30 June 2015
$0.11
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CHALICE GOLD MINES | ANNUAL REPORT 2015
45
45
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CHALICE GOLD MINES | ANNUAL REPORT 2015
34
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Directors’ Report
Chalice Gold Mines Limited
Directors’ Report
7.5
Equity instruments (audited)
7.5.1 Employee share options
During the reporting period no options over ordinary shares in the Group were granted or vested as compensation to key
management personnel. Furthermore, no options over ordinary shares granted to KMP were exercised or lapsed during the
reporting period.
7.5.2 Employee long term incentive plan - performance rights
During the reporting period the following performance rights were granted as compensation to KMP and details of
performance rights that vested during the reporting period are as follows:
Number of
rights granted
during 2015
Grant date
Fair value of
rights at grant
date
$
Expiry date
Number of rights
vested during 2015
Executives
G Snow
R Hacker
1,257,425
142,350
1,378,826
1,326,693
1,306,837
1 October 2014
17 November 2014
25 June 2015
1 October 2014
25 June 2015
104,729
10,752
104,500
110,499
114,352
30 June 2018
30 June 2018
30 June 2019
30 June 2018
30 June 2019
-
-
-
-
-
During the reporting period, no shares were issued on the exercise of performance rights granted as compensation. Refer
below.
Details of the vesting profile of performance rights granted as remuneration to each KMP of the Group are outlined below.
Executive
W B Bent
D Jones
G Snow
R Hacker
Number of
rights
Grant date
% vested in year % forfeited in year
Vesting date
1,453,444 5 June 2013
655,000 5 June 2013
1,257,425 1 October 2014
142,350 17 November 2014
1,378,826 25 June 2015
402,139 6 June 2013
1,326,693 1 October 2014
1,306,837 25 June 2015
-
-
-
-
-
-
-
-
100%
100%
-
-
-
100%
-
-
-
-
30 June 2016
30 June 2016
30 June 2017
-
30 June 2016
30 June 2017
The movement during the reporting period, by value of performance rights over ordinary shares in the Group held by
each KMP is detailed below:
Directors
D Jones
Executives
W B Bent
G Snow
R Hacker
Value of performance rights
granted in year(A)
$
Value of performance rights
exercised in year(B)
$
Value of performance rights
lapsed in year(C)
$
-
-
221,086
224,851
-
-
-
-
75,325
167,146
-
42,225
(A) The value of performance rights granted in the year is the fair value of performance rights calculated at grant date
using a binomial option-pricing model. The total value of the performance rights granted is included in the table
above. This amount is allocated to remuneration over the vesting period.
35
CHALICE GOLD MINES | ANNUAL REPORT 2015
47
Chalice Gold Mines Limited
Directors’ Report
Directors’ Report
(B) The value of performance rights exercised during the year is calculated as the market price of shares of the Company
on ASX as at close of trading on the date the performance rights were exercised after deducting the price paid to
exercise the performance right.
(C) The value of performance rights that lapsed during the year represents the benefit foregone and is calculated at the
date the performance right lapsed using the binomial option-pricing model or market value of shares with no
adjustments for whether performance criteria have or have not been achieved.
7.5.3 Equity holdings of key management personnel
Option holdings and performance rights of key management personnel
The movement during the reporting period in the number of options and performance rights over ordinary shares in the Group
held, directly, indirectly or beneficially, by each KMP, including their related parties, is as follows:
Held at
1 July 2014
Granted as
compensation
Exercised/
Forfeited
Held at
30 June 2015
Vested during
the year
Vested and
exercisable at
30 June 2015
1,453,444
750,000
655,000
300,000
-
402,139
-
-
-
-
(1,453,444)
-
(655,000)
-
-
750,000
-
300,000
2,778,601
2,633,530
-
(402,139)
2,778,601
2,633,530
-
-
-
-
-
-
-
750,000
-
300,000
-
-
Director
W B Bent
A W Kiernan
D A Jones
S P Quin
Executive
G Snow
R K Hacker
Shareholdings of key management personnel
The movement during the reporting period in the number of ordinary shares in the Group held, directly, indirectly or
beneficially, by each KMP, including their related parties, is as follows:
Held at
1 July 2014
Additions
Received on
exercise of
Options/
Performance
rights
Director
T R B Goyder
A W Kiernan
W B Bent
D A Jones
S P Quin
Executive
G Snow
R K Hacker
41,733,533
1,662,041
876,214
379,137
26,321
-
335,890
-
-
-
-
-
-
-
Held at
30 June 2015
41,733,533
1,662,041
-
379,137
26,321
Sales
-
-
(876,214)
-
-
Held at 30
June 2015
41,733,533
1,662,041
-
379,137
26,321
-
335,890
-
(203,890)
-
132,000
-
-
-
-
-
-
-
7.5.4 Other transactions with key management personnel and their related parties
A number of KMP, or their related parties, hold positions in other entities that result in them having control or significant
influence over the financial or operating policies of those entities.
A number of these entities transacted with the Group in the reporting period. The terms and conditions of the transactions
with management persons or their related parties were no more favourable than those available, or which might reasonably
be expected to be available, on similar transactions to non-director related entities on an arm’s length basis.
The aggregate expense/(income) recognised during the year relating to key management personnel or their related parties
was as follows:
CHALICE GOLD MINES | ANNUAL REPORT 2015
48
36
Directors’ Report
Chalice Gold Mines Limited
Directors’ Report
Key management personnel
Transaction
A W Kiernan
Other related parties
Liontown Resources Limited
Uranium Equities Limited
PhosEnergy Limited
Consulting services
Corporate services
Corporate services
Corporate services
Note
(i)
(ii)
(ii)
(ii)
2015
$
72,500
(66,000)
(49,500)
(10,000)
2014
$
82,500
(108,000)
-
-
(i)
(ii)
The Group used the consulting services of Mr Kiernan during the course of the financial year. Amounts were billed
based on normal market rates for such services and were due and payable under normal payment terms.
The Group supplied corporate services including accounting and company secretarial services under a Corporate
Services Agreement to Liontown Resources Limited (“LTR”), Uranium Equities Limited (“UEL”) and PhosEnergy
Limited (“PEL”). Mr Goyder is a director of LTR, UEL and PEL and Mr Kiernan is Chairman of PEL. Amounts were billed
on a proportionate share of the cost to the Group of providing the services and are due and payable under normal
payment terms.
Amounts outstanding (to)/from the above related parties at reporting date arising from these transactions were as follows:
Assets and liabilities arising from the above transactions
Current payables
Trade debtors
7.6
Executive contracts
2015
$
(6,000)
19,154
13,154
2014
$
-
66,296
66,296
Remuneration arrangements for KMP are formalised in employment agreements. Details of these contracts are provided
below.
Managing Director
The Managing Director (“MD”) is employed under an ongoing contract which can be terminated with notice by either the
Group or the MD.
Under the terms of the present contract, as disclosed to the ASX on 13 October 2014:
The MD receives fixed remuneration of $390,000 per annum (inclusive of superannuation).
The MD may participate in incentive plans that may be in place from time to time subject to the Boards discretion
and any shareholder approvals required.
The MD’s termination provisions are as follows:
Notice Period
Payment in lieu of notice
Resignation
Termination for cause
Termination in cases of death, disablement, redundancy or
notice without cause
Diminution of responsibility
3 months
None
3 months
12 months
3 months
None
3 months
N/A
37
CHALICE GOLD MINES | ANNUAL REPORT 2015
49
Chalice Gold Mines Limited
Directors’ Report
Other KMP
Resignation
Termination for cause
Termination in cases of death, disablement, redundancy or
notice without cause
Diminution of responsibility
8.
Dividends
Directors’ Report
Notice Period
Payment in lieu of notice
3 months
None
3 months
6 months
3 months
None
3 months
N/A
No dividends were declared or paid during the year and the directors recommend that no dividend be paid.
9.
Likely developments
There are no likely developments that will impact on the Company other than as disclosed elsewhere in this report.
10.
Significant events after balance date
There were no significant events after balance date that require disclosure in this report.
11.
Directors’ interests
The relevant interest of each director in the shares, rights or options over such instruments issued by Chalice and other
related bodies corporate, as notified by the directors to the ASX in accordance with S205G(1) of the Corporations Act 2001, at
the date of this report is as follows:
T R B Goyder
S P Quin
A W Kiernan
12.
Share options and performance rights
Unissued shares under option
Ordinary shares
41,733,533
26,321
1,662,041
Options over
ordinary
shares
-
300,000
750,000
Performance
rights
-
-
-
At the date of this report 1,550,000 unissued ordinary shares (1,550,000 at reporting date) of the Company are under option
on the following terms and conditions:
Expiry date
30 June 2016
31 October 2017
Exercise price ($)
0.30
0.25
Number of shares
1,050,000
500,000
Unless exercised, these options do not entitle the holder to participate in any share issue of Chalice or any other body
corporate.
Performance rights
At the date of this report 6,931,130 performance rights (7,314,380 at reporting date) have been issued on the following terms
and conditions:
Exercise price ($)
Nil
Nil
Number of rights
3,147,457
3,783,673
Expiry date
30 June 2018
30 June 2019
CHALICE GOLD MINES | ANNUAL REPORT 2015
50
38
Directors’ Report
Chalice Gold Mines Limited
Directors’ Report
Shares issued on exercise of options or performance rights
No shares were issued during or since the end of the year as a result of the exercise of options or performance rights.
13.
Environmental legislation
The Group is subject to environmental legislation and obligations within the jurisdictions in which it operates, which during the
period has been primarily Canada.
14.
Proceedings on behalf of the Company
No person has applied for leave of court to bring proceedings on behalf of the Company or intervene in any proceedings to
which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those
proceedings.
15.
Indemnification and insurance of directors and officers
Chalice has agreed to indemnify all the directors and officers who have held office during the year, against all liabilities
to another person (other than Chalice or a related body corporate) that may arise from their position as directors and officers
of Chalice, except where the liability arises out of conduct involving a lack of good faith. The agreement stipulates that Chalice
will meet the full amount of any such liabilities, including costs and expenses.
During the year the Group paid insurance premiums of $8,763 in respect of directors and officers indemnity insurance
contracts, for current and former directors and officers. The insurance premiums relate to:
costs and expenses incurred by the relevant officers in defending proceedings, whether civil or criminal and whatever
their outcome; and
other liabilities that may arise from their position, with the exception of conduct involving a wilful breach of duty or
improper use of information or position to gain a personal advantage.
The amount of insurance paid is included in KMP remuneration in section 7.4 of the Remuneration Report.
16.
Non-audit services
During the year HLB Mann Judd, the Company’s auditors, provided no services in addition to their statutory duties.
17.
Auditor’s independence declaration
The auditor’s independence declaration is set out on page 41 and forms part of the Directors’ Report for the year ended 30
June 2015.
This Report is made in accordance with a resolution of the Directors:
Tim Goyder
Managing Director
Dated at Perth the 28th day of September 2015
39
CHALICE GOLD MINES | ANNUAL REPORT 2015
51
Chalice Gold Mines Limited
Corporate Governance Statement
Corporate Governance Statement
Chalice Gold Mines Limited ACN 116 648 956 (Company) has established a corporate governance framework, the key
features of which are set out in its Corporate Governance statement which can be found on the Company’s website at
www.chalicegold.com, under the section marked “Corporate Governance”.
In establishing its corporate governance framework, the Company has referred to the recommendations set out in the ASX
Corporate Governance Council's Corporate Governance Principles and Recommendations 3rd edition (Principles &
Recommendations). The Company has followed each recommendation where the Board has considered the
recommendation to be an appropriate benchmark for its corporate governance practices. Where the Company's corporate
governance practices follow a recommendation, the Board has made appropriate statements reporting on the adoption of
the recommendation. In compliance with the "if not, why not" reporting regime, where, after due consideration, the
Company's corporate governance practices do not follow a recommendation, the Board has explained it reasons for not
following the recommendation and disclosed what, if any, alternative practices the Company has adopted instead of those
in the recommendation.
CHALICE GOLD MINES | ANNUAL REPORT 2015
52
40
Auditor’s Independence Declaration
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of Chalice Gold Mines Limited for the
year ended 30 June 2015, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
28 September 2015
L Di Giallonardo
Partner
HLB Mann Judd (WA Partnership) ABN 22 193 232 714
Level 4, 130 Stirling Street Perth WA 6000. PO Box 8124 Perth BC 6849 Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533.
Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au
Liability limited by a scheme approved under Professional Standards Legislation
HLB Mann Judd (WA Partnership) is a member of
International, a worldwide organisation of accounting firms and business advisers.
25
41
CHALICE GOLD MINES | ANNUAL REPORT 2015
Chalice Gold Mines Limited
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2015
Consolidated Statement of Comprehensive Income
For the Year Ended 30 June 2015
Continuing operations
Other income
Foreign exchange gains/(losses)
Net gain on sale of fixed assets
Net loss on sale of investments
Share of associate’s loss
Exploration and evaluation assets written off
Corporate administrative expenses
Business development and project acquisition costs
Depreciation and amortisation expense
Profit/(loss) before tax from continuing operations
Income tax (expenses)/benefit
Profit/(loss) for the year from continuing operations
Discontinued operations
Net profit/(loss) after tax for the year from discontinued
operations
Overprovision for income tax expenses
Profit/(loss) for the year from discontinued operations
Total profit/(loss) for the year
Total profit/(loss) for the year attributable to owners of
the parent
Other comprehensive income/(loss)
Items that may be reclassified to profit or loss
Net change in fair value of available for sale investments
Exchanges differences on translation of foreign operations
Other comprehensive income/(loss) for the year
Note
3(a)
8
11
3(b)
3(d)
6
4
2015
$
608,263
4,925,210
270,439
-
(45,510)
(1,207,782)
(2,057,106)
(1,796,800)
(92,694)
604,020
(259,529)
344,491
-
10,958
10,958
355,449
2014
$
212,204
(631,276)
-
(40,088)
(15,105)
(6,758,654)
(1,889,160)
(2,275,236)
(93,456)
(11,490,771)
259,529
(11,231,242)
(328,422)
-
(328,422)
(11,559,664)
355,449
(11,559,664)
(96,154)
788,764
692,610
245,756
(348,833)
(103,077)
Total comprehensive income/(loss) for the year
1,048,059
(11,662,741)
comprehensive
Total
attributable to owners of the parent
income/(loss)
for
the year
1,048,059
(11,662,741)
Basic and diluted profit/(loss) per share from continuing
operations (cents)
Basic and diluted loss per share from discontinued
operations
Basic and diluted earnings/(loss) per share
continuing and discontinued operations (cents)
from
7
7
7
0.1
0.0
0.1
(4.3)
(0.1)
(4.3)
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
CHALICE GOLD MINES | ANNUAL REPORT 2015
42
54
Consolidated Statement of Financial Position
As at 30 June 2015
Chalice Gold Mines Limited
Consolidated Statement of Financial Position
As at 30 June 2015
Note
2015
$
Current assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-current assets
Financial assets
Investment in associate
Exploration and evaluation assets
Property, plant and equipment
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Income tax payable
Employee benefits
Total current liabilities
Non-current liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Retained earnings
Reserves
Total equity
21
9
10
8
11
12
13
6
14
15
16
17(a)
17(b)
39,864,989
231,020
40,096,009
182,216
1,826,987
13,982,545
554,154
16,545,902
2014
$
44,204,036
416,205
44,620,241
229,671
1,968,651
9,056,705
771,588
12,026,615
56,641,911
56,646,856
625,138
259,951
44,522
929,611
43,132
43,132
972,743
55,669,168
43,622,887
14,890,400
(2,844,119)
55,669,168
1,312,052
130,471
87,313
1,529,836
42,000
42,000
1,571,836
55,075,020
44,140,306
14,421,779
(3,487,065)
55,075,020
The above statement of financial position should be read in conjunction with the accompanying notes.
43
CHALICE GOLD MINES | ANNUAL REPORT 2015
55
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2015
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i
CHALICE GOLD MINES | ANNUAL REPORT 2015
44
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2015
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45
CHALICE GOLD MINES | ANNUAL REPORT 2015
Chalice Gold Mines Limited
Consolidated Statement of Cash Flows
For the year ended 30 June 2015
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2015
Note
2015
$
Cash flows from operating activities
Cash receipts from operations
Cash paid to suppliers and employees
Income tax paid
Research and development tax credit
Interest received
Net cash used in operating activities
Cash flows from investing activities
Payments for mining exploration and evaluation
Payments for business development activities
Costs associated with the acquisition of Cameron Gold Project
Acquisition of the Dubenski Gold Project
Buy-back of Cameron Royalty
Share of joint venture cash calls
Acquisition of property, plant and equipment
Acquisition of associate
Proceeds from sale of fixed assets
Proceeds from sale of shares
Net cash used in investing activities
Cash flows from financing activities
Share buy-back
Minimum shareholding buy-back
Options exercised
Share issue costs
Net cash used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Effect of exchange rate fluctuations on cash held
Cash and cash equivalents at 30 June
21
11
21
125,258
(2,114,343)
(379,043)
259,952
479,068
(1,629,108)
(2,822,084)
(1,823,283)
-
(725,321)
(2,075,327)
-
(120,765)
-
449,050
-
(7,117,730)
(311,124)
(206,295)
-
-
(517,419)
(9,264,257)
44,204,036
4,925,210
39,864,989
The above statement of cash flows should be read in conjunction with the accompanying notes.
2014
$
129,000
(1,941,576)
-
-
94,601
(1,717,975)
(3,512,947)
(2,244,030)
(929,947)
-
-
203,203
(117,378)
(1,770,000)
-
3,912
(8,367,187)
(1,549,244)
-
50,000
(23,508)
(1,522,752)
(11,607,914)
56,443,226
(631,276)
44,204,036
CHALICE GOLD MINES | ANNUAL REPORT 2015
55
46
Notes to the Consolidated Financial Statements
Chalice Gold Mines Limited
For the Year Ended 30 June 2015
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
1. Significant accounting policies
Chalice Gold Mines Limited is a dual listed Australian Securities Exchange (‘ASX’) and Toronto Stock Exchange (‘TSX’)
listed public company domiciled in Australia at Level 2, 1292 Hay Street, West Perth, Western Australia. The
consolidated financial report comprises the financial statements of Chalice Gold Mines Limited (‘Company’) and its
subsidiaries (‘the Group’) for the year ended 30 June 2015.
(a) Basis of preparation
The financial report is a general purpose financial report which has been prepared in accordance with the requirements
of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the
Australian Accounting Standards Board. The financial report has also been prepared on a historical cost basis, except
for available-for-sale investments, which have been measured at fair value. Cost is based on the fair values of the
consideration given in exchange for assets. Chalice is domiciled in Australia and all amounts are presented in Australian
dollars, unless otherwise noted.
The consolidated financial statements provide comparative information in respect of the previous period. In addition,
the Group presents an additional statement of financial position at the beginning of the earliest period presented when
there is a retrospective application of an accounting policy, a retrospective restatement, or a reclassification of items
in financial statements.
The financial report was authorised for issue by the directors on 28 September 2015.
(b) Compliance with IFRS
The financial report also complies with International Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board.
(c) Adoption of new and revised standards
(i)
Standards and interpretations application to 30 June 2015
For the year ended 30 June 2015, the Directors have reviewed all of the new and revised Standards and
Interpretations issued by the AASB that are relevant to the Group’s operations and that are effective for
annual reporting periods beginning on or after 1 July 2014. It has been determined that there is no impact,
material or otherwise, of the new and revised Standards and Interpretations on the Group. The Group has
adopted the following new and amended Standards and AASB Interpretations as of 1 July 2014:
AASB 9 Financial Instruments
AASB 1031 Materiality
AASB 2012-3 Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial
Liabilities
AASB 2013-3 Amendments to Australian Accounting Standards – Recoverable Amount Disclosures for
Non Financial Assets
AASB 2013-5 Amendments to Australian Accounting Standards – Investment Entities
AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and
Financial Instruments
INT 21 Levies
AASB 2014-1 Part A – Annual Improvements 2010-2012 Cycle
AASB 2014-1 Part A – Annual Improvements 2011-2013 Cycle
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Chalice Gold Mines Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2015
(ii)
Accounting Standards and Interpretations issued but not yet effective
The following new accounting standards and interpretations which are not yet effective and have not been
applied by the Company, have been assessed to have no material impact on the Company:
AASB 9 Financial Instruments
AASB 2014-3 Amendments to AASB 1 and AASB 11 – Accounting for Acquisitions of Interests in Joint
Operation
AASB 2014-4 Amendments to AASB 116 and AASB 138 – Clarification of acceptable methods of
depreciation and amortisation.
AASB 15 Revenue from Contracts with Customers.
AASB 2014-9 Amendments to Australian Accounting Standards – Equity Method in Separate Financial
Statements.
AASB 2010-10 – Amendments to Australian Accounting Standards – Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture.
AASB 2015-1 - Amendments to Australian Accounting Standards - Annual Improvements to Australian
Accounting Standards 2012-2014 Cycle
AASB 2015-2 – Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to
AASB 101.
AASB 2015-3 – Amendments to Australian Accounting Standards arising from the withdrawal of AASB
1031 Materiality
AASB 2015-5 - Amendments to Australian Accounting Standards – Investment entities: Applying the
Consolidation Exception.
(d) Basis of consolidation
The consolidated financial statements comprise the financial statements of Chalice Gold Mines Limited (‘Company’ or
‘Parent’) and its subsidiaries as at 30 June each year (the ‘Group’). Interests in associates are equity accounted and
are not part of the consolidated Group.
Subsidiaries are all those entities controlled by the Group. The Group controls an entity when it is exposed to, or has
rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its
power over the entity.
Special purpose entities are those entities over which the Group has no ownership interest but in effect the substance
of the relationship is such that the Group controls the entity so as to obtain the majority of benefits from its operation.
The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using
consistent accounting policies. In preparing the consolidated financial statements, all intercompany balances and
transactions, income and expenses and profit and losses resulting from intra-group transactions have been eliminated
in full.
Subsidiaries and special purpose entities are fully consolidated from the date on which control is transferred to the
Company and cease to be consolidated from the date on which control is transferred out of the Group.
Investments in subsidiaries held by Chalice Gold Mines Limited are accounted for at cost in the financial statements of
the parent entity less any impairment charges.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. The acquisition method
of accounting involves recognising at acquisition date, separately from goodwill, the identifiable assets acquired, the
liabilities assumed and any non-controlling interest in the acquired. The identifiable assets acquired and the liabilities
assumed are measured at their acquisition date fair values.
The difference between the above items and the fair value of consideration (including the fair value of any pre-existing
investment in the acquiree) is goodwill or a discount on acquisition.
CHALICE GOLD MINES | ANNUAL REPORT 2015
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48
Notes to the Consolidated Financial Statements
Chalice Gold Mines Limited
For the Year Ended 30 June 2015
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of
impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the
Group’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets
or liabilities of the acquire are assigned to those units.
Where goodwill forms part of a cash-generating unit and part of the operation within that unit disposal of, the goodwill
associated with the operation disposed of is included in the carrying amount of the operation when determining the
gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is measured based on the relative
values of the operation disposed of and the portion of the cash-generating unit retained.
Non-controlling interest are allocated their share of net result after tax in the consolidated statement of
comprehensive income and are presented in equity in the consolidated statement of financial position, separately
from the equity of the owners of the Parent.
Total comprehensive income within a subsidiary is attributed to the non-controlling interest even if that results in a
deficit balance.
A change in ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If
the Group loses control over a subsidiary it:
Derecognises the assets (including goodwill) and liabilities of the subsidiary
Derecognises the carrying amount of any non-controlling interest
Derecognises the cumulative translation differences recorded in equity
Recognises the fair value of the consideration received
Recognises the fair value of any investment retained
Recognises any surplus or deficit in profit or loss
Reclassifies the Parent’s share of components previously recognised in other comprehensive income to
profit or loss or retained earnings, as appropriate.
(e) Significant accounting judgements, estimates and assumptions
The preparation of a financial report in conformity with Australian Accounting Standards requires management to
make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets,
liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the circumstance-s, the results of which form the basis
of making the judgements about carrying values of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates. These accounting policies have been consistently applied by
the Group.
The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying
amounts of certain assets and liabilities within the next annual reporting period are:
(i)
(ii)
Recoverability of exploration expenditure
The recoverability of the carrying amount of exploration and evaluation expenditure carried forward is
dependent on the future successful outcome from exploration activity or alternatively the sale of the
respective areas of interest. Where exploration results are unsuccessful, or no further work is to be
undertaken, the directors will then assess whether an impairment write-down is required, which will be
recognised in the statement of comprehensive income.
Share-based payment transactions
The Group measures the cost of equity-settled share-based payments at fair value at the grant date using a
Black-Scholes Option model taking into account the terms and conditions upon which the instruments were
granted. The details and assumptions used in determining the value of these transactions are detailed in note
14.
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Chalice Gold Mines Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2015
(f) Foreign currency translation
The functional currency of the Company is Australian dollars and the functional currency of subsidiaries based in
Canada is Canadian Dollars (CAN$). The presentation currency of the Group is Australian dollars. Transactions in
foreign currencies are initially recorded in the functional currency by applying the exchange rates ruling at the date of
the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of the
exchange ruling at the reporting date.
All exchange differences in the consolidated financial report are taken to profit or loss as incurred. Non-monetary
items that are measured in terms of historical cost in a foreign currency are translated at exchange rates as at the date
of the initial transaction.
As at the balance date the assets and liabilities of these subsidiaries are translated into the presentation currency of
Chalice Gold Mines Limited at the rate of exchange ruling at the balance date and their statements of comprehensive
income are translated at the average exchange rate for the year.
The exchange differences arising on the translation are taken directly to a separate component of recognised foreign
currency translation reserve in equity.
On disposal of a foreign entity, the deferred cumulative amount recognised in equity relating to that particular foreign
operation is recognised in profit or loss.
(g) Segment reporting
An operating segment is a component of an entity that engages in business activities from which it may earn revenues
and incur expenses (including revenues and expenses relating to transactions with other components of the same
entity, whose operating results are regularly reviewed by the entity’s chief operating decision maker to make decisions
about resources to be allocated to the segment and assess its performance and for which discrete financial information
is available. This includes start up operations which are yet to earn revenues. Management will also consider other
factors in determining operating segments such as the existence of a line manager and the level of segment
information presented to the board of directors.
Operating segments have been identified based on the information provided to the chief operating decision makers –
being the board of directors.
(h) Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the
revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable,
net of returns, trade allowances, rebates and amounts collected on behalf of third parties.
(i)
(ii)
Sale of goods
Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the
buyer and the costs incurred or to be incurred in respect of the transaction can be reliably measured. Risks
and rewards of ownership are considered passed to the buyer at the time of delivery of the goods to the
buyer.
Services rendered
Revenue from services rendered is recognised in the statement of comprehensive income in proportion to
the stage of completion of the transaction at balance date. The stage of completion is assessed by reference
to surveys of work performed. No revenue is recognised if there are significant uncertainties regarding
recovery of the consideration due and the costs incurred or to be incurred cannot be measured reliably.
(iii)
Interest received
Interest income is recognised in the statement of comprehensive income as it accrues, using the effective
interest method. The interest expense component of finance lease payments is recognised in the statement
of comprehensive income using the effective interest method.
CHALICE GOLD MINES | ANNUAL REPORT 2015
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50
Notes to the Consolidated Financial Statements
Chalice Gold Mines Limited
For the Year Ended 30 June 2015
Chalice Gold Mines Limited
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
For the year ended 30 June 2015
(i)
(i)
(i)
(i)
(ii)
(ii)
Expenses
Expenses
Operating lease payments
Operating lease payments
Payments made under operating leases are recognised in the statement of comprehensive income on a
Payments made under operating leases are recognised in the statement of comprehensive income on a
straight-line basis over the term of the lease. Lease incentives received are recognised in the statement of
straight-line basis over the term of the lease. Lease incentives received are recognised in the statement of
comprehensive income as an integral part of the total lease expense and spread over the lease term.
comprehensive income as an integral part of the total lease expense and spread over the lease term.
Depreciation
Depreciation
Depreciation is calculated on a diminishing value basis over the estimated useful lives of each part of an item
Depreciation is calculated on a diminishing value basis over the estimated useful lives of each part of an item
of property, plant and equipment. Land is not depreciated. The depreciation rates used in the current and
of property, plant and equipment. Land is not depreciated. The depreciation rates used in the current and
comparative periods are as follows:
comparative periods are as follows:
plant and equipment
plant and equipment
fixtures and fittings
fixtures and fittings
motor vehicles
motor vehicles
7%-40%
7%-40%
11%-22%
11%-22%
18.75%-25%
18.75%-25%
the residual value, if not insignificant, is reassessed annually.
the residual value, if not insignificant, is reassessed annually.
Income taxes and other taxes
Income taxes and other taxes
(j)
(j)
The income tax expense for the period is the tax payable on the current period’s taxable income based on the applicable
The income tax expense for the period is the tax payable on the current period’s taxable income based on the applicable
income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary
income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary
differences and to unused tax losses.
differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantially enacted at the end of
The current income tax charge is calculated on the basis of the tax laws enacted or substantially enacted at the end of
the reporting period in the country where the company’s subsidiaries operate and generate taxable income. Provisions
the reporting period in the country where the company’s subsidiaries operate and generate taxable income. Provisions
are established where appropriate on the basis of amounts expected to be paid to the tax authorities.
are established where appropriate on the basis of amounts expected to be paid to the tax authorities.
Current tax liabilities for the current period and prior periods are measured at the amount expected to be recovered
Current tax liabilities for the current period and prior periods are measured at the amount expected to be recovered
from or paid to taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted
from or paid to taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted
or substantially enacted by the balance date.
or substantially enacted by the balance date.
Income tax in the statement of comprehensive income comprises current and deferred tax. Income tax is recognised
Income tax in the statement of comprehensive income comprises current and deferred tax. Income tax is recognised
in the statement of comprehensive income except to the extent that it relates to items recognised directly in equity,
in the statement of comprehensive income except to the extent that it relates to items recognised directly in equity,
in which case it is recognised in equity.
in which case it is recognised in equity.
Deferred income tax is provided on all temporary differences at reporting date between the tax bases of assets and
Deferred income tax is provided on all temporary differences at reporting date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes. The amount of deferred tax provided is based on
liabilities and their carrying amounts for financial reporting purposes. The amount of deferred tax provided is based on
the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted
the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted
or substantively enacted at reporting date.
or substantively enacted at reporting date.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
Deferred income tax liabilities are recognised for all taxable temporary differences except:
when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in
when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in
a transaction that is not a business combination and that, at the time of the transaction, affects neither the
a transaction that is not a business combination and that, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; or
accounting profit nor taxable profit or loss; or
when the taxable temporary difference is associated with investments in subsidiaries, associates or interests in
when the taxable temporary difference is associated with investments in subsidiaries, associates or interests in
joint ventures, and the timing of the reversal of the temporary difference can be controlled and it is probable
joint ventures, and the timing of the reversal of the temporary difference can be controlled and it is probable
that the temporary difference will not reverse in the foreseeable future.
that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and
Deferred tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and
unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible
unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilised, except:
temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilised, except:
when the deferred income tax asset relating to the deductible temporary difference arises from the initial
when the deferred income tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of the
recognition of an asset or liability in a transaction that is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor taxable profit or loss; or
transaction, affects neither the accounting profit nor taxable profit or loss; or
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60
Chalice Gold Mines Limited
Chalice Gold Mines Limited
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
For the year ended 30 June 2015
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2015
when the deductible temporary difference is associated with investments in subsidiaries, associates or
interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that it is probable
when the deductible temporary difference is associated with investments in subsidiaries, associates or
that the temporary difference will reverse in the foreseeable future and taxable profit will be available against
interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that it is probable
which the temporary difference can be utilised.
that the temporary difference will reverse in the foreseeable future and taxable profit will be available against
which the temporary difference can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset
The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the extent that it
to be utilised.
is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset
to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance date and are recognised to the extent that it
has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Unrecognised deferred income tax assets are reassessed at each balance date and are recognised to the extent that it
has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantially
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when
enacted at the balance date.
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantially
enacted at the balance date.
Income taxes relating to items recognised directly in equity are recognised in equity and not profit or loss.
Income taxes relating to items recognised directly in equity are recognised in equity and not profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax
same taxation authority.
assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the
same taxation authority.
(k) Other taxes
Revenue, expenses and assets are recognised net of the amount of goods and services tax (’GST’) or other taxes, except
(k) Other taxes
where the amount of GST or other taxes incurred are not recoverable from the taxation authority. In these
Revenue, expenses and assets are recognised net of the amount of goods and services tax (’GST’) or other taxes, except
circumstances, the GST or other taxes incurred, are recognised as part of the cost of acquisition of the asset or as part
where the amount of GST or other taxes incurred are not recoverable from the taxation authority. In these
of the expense.
circumstances, the GST or other taxes incurred, are recognised as part of the cost of acquisition of the asset or as part
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or
of the expense.
payable to, the Australian Taxation Office (’ATO’) is included as a current asset or liability in the statement of financial
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or
position.
payable to, the Australian Taxation Office (’ATO’) is included as a current asset or liability in the statement of financial
position.
Other taxes payable in foreign jurisdictions are included as a current payable in the statement of financial position.
Other taxes payable in foreign jurisdictions are included as a current payable in the statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from
investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash
Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from
flows. Taxes paid in foreign jurisdictions are classified as investing cash flows in the statement of cash flows.
investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash
flows. Taxes paid in foreign jurisdictions are classified as investing cash flows in the statement of cash flows.
(l)
At each reporting date, the Group assesses whether there is any indication that an asset may be impaired. Where an
(l)
indicator of impairment exists, the Group makes a formal estimate of recoverable amount. Where the carrying amount
At each reporting date, the Group assesses whether there is any indication that an asset may be impaired. Where an
of an asset exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable
indicator of impairment exists, the Group makes a formal estimate of recoverable amount. Where the carrying amount
amount.
of an asset exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable
amount.
Recoverable amount is the greater of fair value less costs to sell and value in use. Value in use is the present value of
the future cash flows expected to be derived from the asset or cash generating unit. In estimating value in use, a pre-
Recoverable amount is the greater of fair value less costs to sell and value in use. Value in use is the present value of
tax discount rate is used which reflects current market assessments of the time value of money and the risks specific
the future cash flows expected to be derived from the asset or cash generating unit. In estimating value in use, a pre-
to the asset. For an asset that does not generate largely independent cashflows, the recoverable amount is determined
tax discount rate is used which reflects current market assessments of the time value of money and the risks specific
for the cash generating unit to which the asset belongs.
to the asset. For an asset that does not generate largely independent cashflows, the recoverable amount is determined
for the cash generating unit to which the asset belongs.
Impairment losses are recognised in the statement of comprehensive income unless the asset has previously been
revalued, in which case the impairment loss is recognised as a reversal to the extent of that previous revaluation with
Impairment losses are recognised in the statement of comprehensive income unless the asset has previously been
any excess recognised through the statement of comprehensive income. Receivables with a short duration are not
revalued, in which case the impairment loss is recognised as a reversal to the extent of that previous revaluation with
discounted.
any excess recognised through the statement of comprehensive income. Receivables with a short duration are not
discounted.
Impairment
Impairment
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52
Notes to the Consolidated Financial Statements
Chalice Gold Mines Limited
For the Year Ended 30 June 2015
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine
the asset’s recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount
of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that
would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.
Such reversal is recognised in profit or loss unless the asset is carried at revalued amount, in which case the reversal is
treated as a revaluation increase. After such a reversal the depreciation charge is adjusted in future periods to allocate
the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.
(m) Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with an original maturity of six months or less.
Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management are included
as a component of cash and cash equivalents for the purpose of the statement of cash flows.
(n) Trade and other receivables
Trade and other receivables are stated at cost less impairment losses (see accounting policy (l)).
(o) Non-current assets held for sale and discontinued operations
Immediately before classification as held-for-sale, the measurement of the assets (and all assets and liabilities in a
disposal group) is brought up to date in accordance with applicable AIFRS. Then, on initial classification as held-for-
sale, non-current assets and disposal groups are recognised at the lower of carrying amount and fair value less costs
to sell. Non-current assets and disposal groups are classified as held for sale if their carrying amounts will be recovered
principally through a sale transaction rather than through continuing use. This condition is regarded as met only when
the sale is highly probable and the asset or disposal group is available for immediate sale in its present condition.
Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale
within one year from the date of classification.
In the statement of comprehensive income, income and expenses from the discontinued operations are reported
separately from income and expenses from continuing operations, down to the level of profit after taxes, even when
the Group retains a non-controlling interest in the subsidiary after the sale. The resulting profit or loss (after taxes) is
reported separately in the statement of comprehensive income.
Property, plant and equipment and tangible assets once classified as held for sale are not depreciated or amortised.
(p) Plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses. Such
cost includes the cost of replacing parts that are eligible for capitalisation when the cost of replacing the parts is
incurred.
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each
financial year end.
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits
are expected from its use or disposal.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds
and the carrying amount of the asset) is included in profit or loss in the year the asset is derecognised.
The carrying values of plant and equipment are reviewed for impairment at each balance date in line with the Group’s
impairment policy (see accounting policy (l)).
(q) Financial assets
Financial assets in the scope of AASB 139 Financial Instruments: Recognition and Measurement are classified as either
financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, or available-
for-sale investments, as appropriate. When financial assets are recognised initially, they are measured at fair value,
plus, in the case of investments not at fair value, through profit or loss, directly attributable transactions costs. The
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Chalice Gold Mines Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2015
Group determines the classification of its financial assets at initial recognition and, when allowed and appropriate, re-
evaluates this designation at each financial year end.
(i)
(ii)
(iii)
Financial assets at fair value through profit or loss
Financial assets classified as held-for-trading are included in the category ’financial assets at fair value
through profit or loss’. Financial assets are classified as held for trading if they are acquired for the purpose
of selling in the near term. Derivatives are also classified as held-for-trading unless they are designated as
effective hedging instruments. Gains or losses on investments held-for-trading are recognised in profit or
loss.
Held-to-maturity investments
If the Group has the positive intent and ability to hold debt securities to maturity, then they are classified as
held-to-maturity. Held-to-maturity investments are measured at amortised cost using the effective interest
method, less any impairment losses.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market. Such assets are carried at amortised cost using the effective interest method.
Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired,
as well as through the amortisation process.
(iv) Available-for-sale investments
Available-for-sale investments are those non-derivative financial assets that are designated as available-for-
sale or are not classified as any of the three preceding categories. After initial recognition available-for sale
investments are measured at fair value with gains or losses being recognised as a separate component of
equity until the investment is derecognised or until the investment is determined to be impaired, at which
time the cumulative gain or loss previously reported in equity is recognised in profit or loss.
(r) Derecognition of financial assets and financial liabilities
(i)
Financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets)
are derecognised when:
the rights to receive cash flows from the asset have expired; and/or
the Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to
pay the received cash flows in full without material delay to a third party under a ‘pass-through’
arrangement; and either (a) the Group has transferred substantially all the risk and rewards of the asset,
or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset,
but has transferred control of the asset.
When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-
through arrangement, it evaluates if and to what extent it has retained the risk and rewards of ownership.
When it has neither transferred nor retained substantially all of the risk and rewards of the asset, nor
transferred control of the asset, the asset is recognised to the extent of the Group’s continuing involved in
the asset. In that case, the Group also recognises an associated liability. The transferred asset and the
associated liability are measured on a basis that reflects the rights and obligations that the Group has
retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the
lower of the original carrying amount of the asset and the maximum amount of consideration that the Group
could be required to repay.
(ii)
Financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
CHALICE GOLD MINES | ANNUAL REPORT 2015
63
54
Notes to the Consolidated Financial Statements
Chalice Gold Mines Limited
For the Year Ended 30 June 2015
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as a derecognition of the original liability and the recognition of a new liability, and
the difference in the respective carrying amounts is recognised in profit or loss.
The fair value of investments that are actively traded in organised financial markets is determined by
reference to quoted market bid prices at the close of business on reporting date. For investments with no
active market, fair value is determined using valuation techniques. Such techniques include using recent
arm’s length market transactions; reference to the current market value of another instrument that is
substantially the same; discounted cash flow analysis and option-pricing models.
(s) Impairment of financial assets
The Group assesses, at each reporting date, whether there is any objective evidence that a financial asset or a group
of financial assets is impaired. A financial asset or a group of a financial assets is deemed to be impaired if, and only if,
there is objective evidence of impairment as a result of one or more events that has occurred after the initial
recognition of the asset (an incurred ’loss event’) and that loss event has an impact on estimated future cash flows of
the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include
indications that debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency in
interest or principal payments, the probability that they will enter bankruptcy or other financial reorganisation and
when observable data indicate that there is a measurable decrease in the estimated future cash flows, such as changes
in arrears or economic conditions that correlate with defaults.
(i)
Financial assets carried at amortised cost
For financial assets carried at amortised cost, the Group first assess whether objective evidence of
impairment exists individually for financial assets that are individually significant, or collectively for financial
assets that are not individually significant. If the Group determines that no objective evidence of impairment
exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group
of financial assets with similar credit risk characteristics and collectively assess them for impairment. Assets
that are individually assessed for impairment and for which an impairment loss is or continues to be,
recognised are not included in a collective assessment of impairment.
If there are objective evidence that an impairment loss has been incurred, the amount of the loss is measured
as the difference between the asset’s carrying amount and the present value of estimated future cash flows
(excluding future expected credit losses that have not yet been incurred). The present value of the estimated
future cash flows is discounted at the financial asset’s original effective interest rate.
(ii)
Financial assets carried at cost
If there is objective evidence that an impairment loss has been incurred on an unquoted equity instrument
that is not carried at fair value (because its fair value cannot be reliably measured), or on a derivative asset
that is linked to and must be settled by delivery of such an unquoted equity instrument, the amount of the
loss is measured as the difference between the asset’s carrying amount and the present value of estimated
future cash flows, discounted at the current market rate of return for a similar financial asset. Such
impairment loss shall not be reversed in subsequent periods.
(iii) Available-for-sale investments
If there is objective evidence that an available-for-sale investment is impaired, an amount comprising the
difference between its cost (net of any principal repayment and amortisation) and its current fair value, less
any impairment loss previously recognised in profit or loss, is transferred from equity to the statement of
comprehensive income. Reversals of impairment losses for equity instruments classified as available-for-sale
are not recognised in profit. Reversals of impairment losses for debt instruments are reversed through profit
or loss if the increase in an instrument's fair value can be objectively related to an event occurring after the
impairment loss was recognised in profit or loss.
55
CHALICE GOLD MINES | ANNUAL REPORT 2015
64
Chalice Gold Mines Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2015
(t) Exploration, evaluation, development and tenement acquisition costs
Exploration, evaluation, development and tenement acquisition costs in relation to separate areas of interest for
which rights of tenure are current, are capitalised in the period in which they are incurred and are carried at cost
less accumulated impairment losses. The cost of acquisition of an area of interest and exploration expenditure
relating to that area of interest is carried forward as an asset in the statement of financial position so long as the
following conditions are satisfied:
(1)
(2)
the rights to tenure of the area of interest are current; and
at least one of the following conditions is also met:
(i) the exploration and evaluation expenditures are expected to be recouped through successful
development and exploitation of the area of interest, or alternatively, by its sale; or
(ii) exploration and evaluation activities in the area of interest have not at the reporting date reached
a stage which permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves, and active and significant operations in, or in relation to, the area of interest
are continuing.
Exploration and evaluation expenditure is initially measured at cost and include acquisition of rights to explore,
studies, exploratory drilling, trenching and sampling and associated activities. General and administrative costs
are only included in the measurement of exploration and evaluation expenditures where they are related directly
to operational activities in a particular area of interest.
Exploration and evaluation expenditure is assessed for impairment when facts and circumstances suggest that
their carrying amount exceeds their recoverable amount and where this is the case an impairment loss is
recognised. Should a project or an area of interest be abandoned, the expenditure will be written off in the period
in which the decision is made. Where a decision is made to proceed with development, accumulated expenditure
will be tested for impairment, reclassified to development costs and then amortised over the life of the reserves
associated with the area of interest once mining operations have commenced.
(u) Trade and other payables
Trade and other payables are stated at amortised cost. Trade and other payables are presented as current liabilities
unless payment is not due within 12 months
(v) Provisions and employee benefits
A provision is recognised when the Group has a present legal or constructive obligation as a result of a past event, and
it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material,
provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and, when appropriate, the risks specific to the liability.
(w) Employee benefits
(i) Wages, salaries and annual leave
Liabilities for employee benefits for wages, salaries, annual leave and sick leave represent present obligations
resulting from employees' services provided to reporting date, calculated at undiscounted amounts based
on remuneration wage and salary rates that the Group expects to pay as at reporting date including related
on-costs, such as superannuation, workers’ compensation insurance and payroll tax.
(ii)
Long service leave and other long term employee benefits
The Group’s net obligation in respect of long-term employee benefits other than defined benefit plans is the
amount of future benefit that employees have earned in return for their service in the current and prior
periods plus related on-costs. This benefit is discounted to determine its present value, and the fair value of
any related assets is deducted. The discount rate is the yield at the reporting date on government bonds
that have maturity dates approximating the terms of the Group’s obligations. The calculation is performed
using the projected unit cost method.
CHALICE GOLD MINES | ANNUAL REPORT 2015
68
56
Notes to the Consolidated Financial Statements
Chalice Gold Mines Limited
For the Year Ended 30 June 2015
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
(iii)
(iv)
Superannuation
Obligations for contributions to defined contribution pension plans are recognised as an expense in the
statement of comprehensive income as incurred.
Share-based payment transactions
The Group currently provides benefits under an Employee Share Option Plan. The cost of these equity-settled
transactions with employees and directors is measured by reference to the fair value at the date at which
they are granted. The fair value is determined using an appropriate valuation model and further details are
provided at note 14. The cost is recognised, together with a corresponding increase in other capital reserves
in equity, over the period in which the performance and/or service conditions are fulfilled in employee
benefits expense. The cumulative expense recognised for equity-settled transactions at each reporting date
until the vesting date reflects the extent to which the vesting period has expired and the Group’s best
estimate of the number of equity instruments that will ultimately vest. The statement of profit or loss
expense or credit for a period represents the movement in cumulative expense recognised as at the beginning
and end of that period and is recognised in employee benefits expense.
No expense is recognised for awards that do not ultimately vest, except for equity-settled transactions for
which vesting is conditional upon a market or non-vesting condition. These are treated as vesting irrespective
of whether or not the market or non-vesting condition is satisfied, provided that all other performance and/or
service conditions are satisfied.
Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the
terms had not been modified. In addition, an expense is recognised for any increase in the value of the
transaction as a result of the modification, measured at the date of modification.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and
any expense not yet recognised for the award is recognised immediately. However, if a new award is
substituted for the cancelled award, and designated as a replacement award on the date that it is granted,
the cancelled and new award are treated as if they were a modification of the original award, as described in
the previous paragraph.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation
of earnings per share.
(x) Share Capital
(i)
(ii)
Ordinary share capital
Ordinary shares and partly paid shares are classified as equity.
Transaction costs
Transaction costs of an equity transaction are accounted for as a deduction from equity, net of any related
income tax benefit
(y) Investments in associates
An associate is an entity over which the Group has significant influence. Significant influence is the power to participate
in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. The
considerations made in determining significant influence or joint control are similar to those necessary to determine
control over subsidiaries.
The Group’s investment in associates is accounted for using the equity method of accounting in the consolidated
financial statements. Under the equity method, investments in associates are carried in the consolidated statement
of financial position at cost plus post acquisition changes in the Group’s share of net assets of the associates. Goodwill
relating to an associate is included in the carrying amount of the investment and is not amortised. After application of
the equity method, the Group determines whether it is necessary to recognise any impairment loss with respect to the
Group’s net investment in associates. Goodwill included in the carrying amount of the investment in the associate is
57
CHALICE GOLD MINES | ANNUAL REPORT 2015
66
Chalice Gold Mines Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2015
not tested separately; rather the entire carrying amount of the investment is tested for impairment as a single asset.
If an impairment is recognised, the amount is not allocated to the goodwill of the associate.
The Group’s share of its associates’ post acquisition profits or losses is recognised in the statement of comprehensive
income, and its share of post-acquisition movements are adjusted against the carrying amount of the investment.
Dividends receivable from the associates are recognised in the parent entity’s statement of comprehensive income as
a component of other income.
When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any unsecured
long term receivables and loans, the Group does not recognise further losses unless it has incurred obligations or made
payments on behalf of the associate.
(z) Interest in joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to
the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed
sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous
consent of the parties sharing control.
When a group entity undertakes its activities under joint operations, the Group as a joint operator recognises in relation
to its interest in a joint operation:
(i)
(ii)
(iii)
(iv)
(v)
its assets, including its share of any assets held jointly;
its liabilities, including its share of any liabilities incurred jointly;
its revenue from the sale of its share of the output arising from the joint operation;
its share of the revenue from the sale of the output by the joint operation; and
its expenses, including its share of any expenses incurred jointly.
The Group accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation in
accordance with the AASBs applicable to the particular assets, liabilities, revenues and expenses.
When a group entity transacts with a joint operation in which a group entity is a joint operator (such as a sale or
contribution of assets), the Group is considered to be conducting the transaction with the other parties to the joint
operation, and gains and losses resulting from the transactions are recognised in the Group's consolidated financial
statements only to the extent of other parties' interests in the joint operation.
When a group entity transacts with a joint operation in which a group entity is a joint operator (such as a purchase of
assets), the Group does not recognise its share of the gains and losses until it resells those assets to a third party.
(aa) Parent entity financial information
The financial information for the parent entity, Chalice Gold Mines Limited, disclosed in note 19 has been prepared on
the same basis as the consolidated financial statements.
CHALICE GOLD MINES | ANNUAL REPORT 2015
67
58
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2015
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CHALICE GOLD MINES | ANNUAL REPORT 2015
60
s
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m
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t
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C
Notes to the Consolidated Financial Statements
Chalice Gold Mines Limited
For the Year Ended 30 June 2015
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
3.
Revenue and expenses
2015
$
2014
$
(a)
(b)
(c)
Other income
Corporate and administration service fees
Net finance income
Corporate administrative expenses
Consultants
Insurance
Legal fees
Travel
Head office costs
Regulatory and compliance
Personnel expenses (note 3(c))
Other
Personnel expenses
Wages and salaries
Redundancies and terminations
Directors’ fees
Other associated personnel expenses
Superannuation contributions
(Decrease)/increase in liability for annual leave
(Decrease)/increase in liability for long service leave
Equity-settled share- based payment transactions
(d)
Business development costs
Personnel expenses
Head office costs
Consultants
Travel and conferences
Other
125,758
482,505
608,263
240
49,040
43,470
8,491
119,032
335,130
1,428,597
73,106
2,057,106
309,805
560,825
152,808
170,637
167,315
(927)
4,626
63,508
1,428,597
852,843
297,234
468,606
121,598
56,519
1,796,800
108,000
104,204
212,204
1,125
79,170
93,225
819
192,613
264,211
1,168,318
89,679
1,889,160
657,716
-
110,474
123,669
175,369
25,507
2,694
72,889
1,168,318
1,132,109
329,299
320,198
439,638
53,992
2,275,236
4.
Sale of the Zara Project in Eritrea
On 4 September 2012, Chalice completed the sale of the Zara Project in Eritrea to China SFECO Group and
the Eritrean National Mining Corporation (“ENAMCO”). The Company sold its 60 per cent interest in the Zara
Project to China SFECO Group for US$78 million ($76.9 million) plus a deferred consideration of US$2 million
which is payable upon commencement of first commercial production at the Koka Gold Mine. In addition,
the sale of Chalice’s 30 per cent interest (plus a 10 per cent free carried interest) to ENAMCO for US$34
million ($33.1 million) was settled. All associated profit taxes in Eritrea on both the China SFECO Group
transaction and the ENAMCO transaction were paid. Following completion of the sale, the profit on disposal
was realised as presented below:
61
CHALICE GOLD MINES | ANNUAL REPORT 2015
70
Chalice Gold Mines Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2015
5.
6.
Consideration received
Funds outstanding – Eritrean National Mining Corporation
Total disposal consideration
Gain on disposal before income tax
Underprovision for income tax
Income tax expense
Loss on disposal after tax
Share of net loss on subsidiary up to date of disposal (depreciation)
Net loss from discontinued operation
Auditor’s remuneration
Audit services
HLB Mann Judd:
Audit and review of financial reports
Other services
2015
$
-
-
-
-
-
-
-
-
2014
$
61,578
61,578
61,578
(10,958)
(379,042)
(328,422)
-
(328,422)
43,000
-
43,000
50,500
-
50,500
Income tax
The prima facie income tax expense on pre-tax accounting result on operations and discontinued
operations reconciles to the income tax benefit in the financial statements as follows:
Accounting profit/(loss) from continuing operations
Income tax calculated at the Australian corporate rate of 30%
Non-deductible expenses
Share based payments
Deferred tax assets and liabilities not recognised
Research and development tax claim (payable)/benefit
Income tax (expense)/benefit reported
comprehensive income
in the statement of
2015
$
604,020
181,206
277,142
19,053
(477,402)
(259,529)
2014
$
(11,490,771)
(3,447,231)
2,047,201
-
1,400,030
259,529
(259,529)
259,529
The tax rate used in the above reconciliation is the corporate rate of 30% payable by Australian corporate
entities on taxable profits under Australian tax law. There has been no change in this tax rate since the previous
reporting period.
CHALICE GOLD MINES | ANNUAL REPORT 2015
71
62
Notes to the Consolidated Financial Statements
Chalice Gold Mines Limited
For the Year Ended 30 June 2015
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
Unrecognised deferred tax balances
The following deferred tax assets and liabilities have not been brought to account:
Deferred tax assets comprise:
Revenue losses available for offset against future taxable income
Other deferred tax assets
Deferred tax liabilities comprise:
Unrealised foreign exchange gains
Other deferred tax liabilities
Net deferred tax assets recognised
2015
$
2,995,094
1,006,136
4,001,230
(338,048)
(1,997)
(340,045)
2014
$
4,504,645
737,934
5,242,579
(1,323,720)
(1,729)
(1,325,449)
Income tax benefit not recognised directly in equity during the year:
Share issue costs
(3,830)
(11,179)
Deferred tax liabilities have not been recognised in respect of these taxable temporary differences as the entity
is able to control the timing of the reversal of the temporary difference and it is probable that the temporary
difference will not reverse in the foreseeable future.
7.
Earnings per share
Basic and diluted earnings per share
The calculation of basic earnings per share for the year ended 30 June 2015 was based on the profit attributable
to ordinary equity holders of the parent of $355,449 (2014: loss of $11,559,664) and a weighted average number
of ordinary shares outstanding during the year ended 30 June 2015 of 284,997,126 (2014: 268,147,888).
Profit/(loss) attributable to ordinary shareholders
Profit/(loss) attributable to ordinary equity holders of the parent from
continuing operations
Profit/(loss) attributable to ordinary equity holders of the parent from
a discontinued operation
Net profit/(loss) attributable to ordinary equity holders of the
parent for basic earnings
Net profit/(loss) attributable to ordinary equity holders of the
parent adjusted for the effect of dilution
2015
$
2014
$
344,491
(11,231,242)
10,958
(328,422)
355,449
(11,559,664)
355,449
(11,559,664)
Diluted earnings per share have not been disclosed as the impact from options and performance rights is anti-
dilutive.
8.
Investment in associates
The Company has a 23.17% interest in unlisted Australian based GeoCrystal Limited (“GeoCrystal”). The principal
activity of the company is exploring diamonds in Australia.
63
CHALICE GOLD MINES | ANNUAL REPORT 2015
72
Chalice Gold Mines Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2015
Reconciliation of movements in investments in associates
Balance at 1 July
Payments made to acquire interest
Unlisted options
Revaluation of unlisted options
Share of loss of associate
Balance at 30 June
Summary of financial information of associate:
Financial Position
Total assets
Total liabilities
Net assets
Share of associate’s net assets
Financial Performance
Total revenue
Total loss for the year
Share of associate’s loss
2015
$
1,968,651
-
-
(96,154)
(45,510)
1,826,987
7,981,031
(95,891)
7,885,140
1,826,987
53,156
(196,418)
(45,510)
2014
$
-
1,770,000
213,756
-
(15,105)
1,968,651
8,253,967
(51,255)
8,202,712
1,968,651
13,281
(62,938)
(15,105)
The associate had no contingent liabilities or assets at 30 June 2015 (30 June 2014: nil) and exploration
commitments payable within 1 year of $408,000.
9.
10.
11.
Trade and other receivables
Other trade receivables
Prepayments
Financial assets
Non-current
Bond in relation to office premises
Bank guarantee and security deposits
Exploration and evaluation expenditure
Costs carried forward in respect of:
Exploration and evaluation phase – at cost
Balance at beginning of year
Expenditure incurred
Acquisition of the Cameron Project
Cost associated with the acquisition of the Cameron Project
Acquisition of the Dubenski Property
Acquisition of two thirds of a 3% royalty at the Cameron Project(1)
Exploration and evaluation assets written off
Effects of movements in exchange rate
Total exploration expenditure
2015
$
142,971
88,049
231,020
66,628
115,588
182,216
9,056,705
3,383,788
-
-
-
2,075,327
(1,207,782)
674,507
13,982,545
2014
$
258,686
157,519
416,205
65,456
164,215
229,671
5,202,613
3,226,797
6,149,471
877,170
694,960
-
(6,758,654)
(335,652)
9,056,705
The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phases
is dependent on the successful development and commercial exploitation or sale of the respective areas.
(1)In March 2015, the Company exercised its right to buy-back two-thirds, or 2% of the existing 3% Net Smelter
Royalty (“NSR”) relating to the Cameron Gold Deposit for C$2 million.
CHALICE GOLD MINES | ANNUAL REPORT 2015
73
64
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2015
Chalice Gold Mines Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
12.
Property, plant and equipment
Office
Furniture
and
Equipment
$
Computer
Equipment and
Software
$
Plant and
Equipment
$
Motor
Vehicles
$
Total
$
360,199
100,018
(68,987)
22,595
106,808
-
-
969
149,326
29,746
(5,648)
220
155,255
-
(125,448)
11,835
771,588
129,764
(200,083)
35,619
(85,261)
(17,176)
(63,614)
(16,683)
(182,734)
328,564
90,601
110,030
24,959
554,154
513,412
419,566
591,520
37,054
1,561,552
(184,848)
328,564
(328,965)
90,601
(481,490)
110,030
(12,095)
24,959
(1,007,398)
554,154
107,329
45,701
105,958
-
138,217
71,677
150,766
-
502,270
117,378
279,339
(6,886)
19,503
(658)
-
-
36,013
(2,483)
334,855
(10,027)
(65,284)
(17,995)
(60,568)
(29,041)
(172,888)
360,199
106,808
149,326
155,255
771,588
499,375
415,749
596,625
193,195
1,704,944
(139,176)
360,199
(308,941)
106,808
(447,299)
149,326
(37,940)
155,255
(933,356)
771,588
Year ended 30 June 2015
At 1 July 2014 net of
accumulated depreciation and
impairment
Additions
Disposals
Exchange differences
Depreciation charge for the
year
At 30 June 2015 net of
accumulated depreciation and
impairment
At 30 June 2015
Cost
Accumulated depreciation
and impairment
Net carrying amount
Year ended 30 June 2014
At 1 July 2013 net of
accumulated depreciation and
impairment
Additions
Assets acquired from
acquisition of the Cameron
Project
Exchange differences
Depreciation charge for the
year
At 30 June 2014 net of
accumulated depreciation and
impairment
At 30 June 2014
Cost
Accumulated depreciation
and impairment
Net carrying amount
65
CHALICE GOLD MINES | ANNUAL REPORT 2015
74
Chalice Gold Mines Limited
Chalice Gold Mines Limited
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
For the year ended 30 June 2015
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2015
Trade and other payables
Trade and other payables
Trade payables
Trade payables
Other payables
Amount due under contract(1)
Other payables
Amount due under contract(1)
Accrued expenses
Accrued expenses
2014
$
2014
$
14,072
14,072
77,933
77,933
694,960
694,960
525,087
525,087
1,312,052
1,312,052
(1)Represents amounts owing for the acquisition of the Dubenski property (C$700,000), which was paid on 29
(1)Represents amounts owing for the acquisition of the Dubenski property (C$700,000), which was paid on 29
October 2014.
October 2014.
2015
$
2015
$
27,521
27,521
47,702
47,702
-
-
549,915
549,915
625,138
625,138
13.
13.
14.
14.
Employee benefits
Employee benefits
Annual leave accrued
Provision for long service leave
Annual leave accrued
Provision for long service leave
2015
$
2015
$
44,076
446
44,076
446
44,522
44,522
2014
$
2014
$
86,927
386
86,927
386
87,313
87,313
(a)
(a)
Share based payments
Share based payments
Employee share option plan
Employee share option plan
The Group has an Employee Share Option Plan (‘ESOP’) in place. Under the terms of the ESOP, the Board may
offer options for no consideration to full-time or part-time employees (including persons engaged under a
The Group has an Employee Share Option Plan (‘ESOP’) in place. Under the terms of the ESOP, the Board may
consultancy agreement), executive and non-executive directors. In the case of the directors, the issue of
offer options for no consideration to full-time or part-time employees (including persons engaged under a
options under the ESOP requires shareholder approval.
consultancy agreement), executive and non-executive directors. In the case of the directors, the issue of
Each option entitles the holder, on exercise, to one ordinary fully paid share in the Company. There is no issue
options under the ESOP requires shareholder approval.
price for the options. The exercise price for the options is determined by the Board.
Each option entitles the holder, on exercise, to one ordinary fully paid share in the Company. There is no issue
price for the options. The exercise price for the options is determined by the Board.
An option may only be exercised after that option has vested and any other conditions imposed by the Board
on exercise satisfied. The Board may determine the vesting period, if any.
An option may only be exercised after that option has vested and any other conditions imposed by the Board
on exercise satisfied. The Board may determine the vesting period, if any.
The number and weighted average exercise prices of share options is as follows:
The number and weighted average exercise prices of share options is as follows:
Outstanding at the beginning of the year
Outstanding at the beginning of the year
Forfeited during the year
Forfeited during the year
Exercised during the year
Exercised during the year
Granted during the year
Granted during the year
Exercisable at the end of the year
Exercisable at the end of the year
Outstanding at the end of the year
Outstanding at the end of the year
Outstanding at the beginning of the year
Outstanding at the beginning of the year
Forfeited during the year
Forfeited during the year
Exercised during the year
Exercised during the year
Granted during the year
Granted during the year
Exercisable at the end of the year
Exercisable at the end of the year
Outstanding at the end of the year
Outstanding at the end of the year
Weighted
average exercise
Weighted
price
average exercise
$
price
2015
$
2015
0.32
0.32
0.35
0.35
-
-
0.25
0.25
0.28
0.28
0.28
0.28
Weighted
average exercise
Weighted
price
average exercise
$
price
2014
$
2014
0.33
0.33
0.36
0.36
0.10
0.10
-
-
0.32
0.32
0.32
0.32
Number
of options
Number
of options
2015
2015
1,900,000
1,900,000
(850,000)
(850,000)
-
-
500,000
500,000
1,550,000
1,550,000
1,550,000
1,550,000
Number
of options
Number
of options
2014
2014
5,650,000
5,650,000
(3,250,000)
(3,250,000)
(500,000)
(500,000)
-
-
1,900,000
1,900,000
1,900,000
1,900,000
75
75
CHALICE GOLD MINES | ANNUAL REPORT 2015
66
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2015
Chalice Gold Mines Limited
Chalice Gold Mines Limited
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
For the year ended 30 June 2015
The options outstanding at 30 June 2015 have a weighted average exercise price of $0.28 (2014: $0.32) and a
The options outstanding at 30 June 2015 have a weighted average exercise price of $0.28 (2014: $0.32) and a
weighted average contractual life of 3 years (2014: 3 years).
weighted average contractual life of 3 years (2014: 3 years).
The fair value of the options is estimated at the date of grant using a Black-Scholes option-pricing model. The
The fair value of the options is estimated at the date of grant using a Black-Scholes option-pricing model. The
following table gives the assumptions made in determining the fair value of the options granted during the year.
following table gives the assumptions made in determining the fair value of the options granted during the year.
Weighted average share price at grant date
Weighted average share price at grant date
Weighted exercise price
Weighted exercise price
Expected volatility (expressed as weighted average volatility)
Expected volatility (expressed as weighted average volatility)
Option life (expressed as weighted average life)
Option life (expressed as weighted average life)
Expected dividends
Expected dividends
Risk-free interest rate
Risk-free interest rate
2015
2015
$0.117
$0.117
$0.25
$0.25
38.2%
38.2%
3 years
3 years
-
-
2.61%
2.61%
2014
2014
-
-
-
-
-
-
-
-
-
-
-
-
Share options are granted under service conditions. Non-market performance conditions are not taken into
Share options are granted under service conditions. Non-market performance conditions are not taken into
account in the grant date fair value measurement of the services received.
account in the grant date fair value measurement of the services received.
(b)
(b)
Employee long term incentive plan
Employee long term incentive plan
The Company has in place an Employee Long Term Incentive Plan (‘LTIP’) and under the LTIP the Board may issue
The Company has in place an Employee Long Term Incentive Plan (‘LTIP’) and under the LTIP the Board may issue
performance rights to employees and directors. A performance right is a right to be issued an ordinary share
performance rights to employees and directors. A performance right is a right to be issued an ordinary share
upon the satisfaction of certain performance conditions that are attached to the performance right, the
upon the satisfaction of certain performance conditions that are attached to the performance right, the
conditions of which are determined by the Board.
conditions of which are determined by the Board.
Performance rights are granted for no consideration and the term of the performance rights are determined by
Performance rights are granted for no consideration and the term of the performance rights are determined by
the Board in its absolute discretion, but will ordinarily have a three year term up to a maximum of five years.
the Board in its absolute discretion, but will ordinarily have a three year term up to a maximum of five years.
Performance rights are subject to lapsing if performance conditions are not met by the relevant measurement
Performance rights are subject to lapsing if performance conditions are not met by the relevant measurement
date or expiry date (if no other measurement date is specified) or if employment is terminated. There is no
date or expiry date (if no other measurement date is specified) or if employment is terminated. There is no
ability to re-test performance under the LTIP after the performance period.
ability to re-test performance under the LTIP after the performance period.
The fair value of performance rights has been calculated at the grant date and allocated to each reporting period
The fair value of performance rights has been calculated at the grant date and allocated to each reporting period
evenly over the period from grant date to vesting date. The value disclosed is the portion of fair value of the
evenly over the period from grant date to vesting date. The value disclosed is the portion of fair value of the
rights allocated to this reporting period.
rights allocated to this reporting period.
The weighted average fair value of the performance rights outstanding at 30 June 2015 was 11.7 cents per
The weighted average fair value of the performance rights outstanding at 30 June 2015 was 11.7 cents per
performance right (2014: 4.8 cents).
performance right (2014: 4.8 cents).
A summary of performance rights in the Group and the Company is as follows:
A summary of performance rights in the Group and the Company is as follows:
30 June 2015:
30 June 2015:
Grant date
Grant date
5 June 2013
5 June 2013
6 June 2013
6 June 2013
1 October 2014
1 October 2014
17 November 2014
17 November 2014
25 June 2015
25 June 2015
Opening
Opening
balance
balance
2,108,444
2,108,444
645,705
645,705
-
-
-
-
-
-
2,754,149
2,754,149
Granted
Granted
-
-
-
-
3,388,357
3,388,357
142,350
142,350
3,783,673
3,783,673
7,314,380
7,314,380
Vested
Vested
-
-
-
-
-
-
-
-
-
-
-
-
Lapsed/Forfeited
Lapsed/Forfeited
(2,108,444)
(2,108,444)
(645,705)
(645,705)
-
-
-
-
-
-
(2,754,149)
(2,754,149)
Closing
Closing
balance
balance
-
-
-
-
3,388,357
3,388,357
142,350
142,350
3,783,673
3,783,673
7,314,380
7,314,380
Share
Share
price at
price at
date of
date of
issue
issue
($)
($)
0.16
0.16
0.17
0.17
0.13
0.13
0.11
0.11
0.11
0.11
67
CHALICE GOLD MINES | ANNUAL REPORT 2015
76
76
Chalice Gold Mines Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2015
30 June 2014:
Grant date
5 June 2013
6 June 2013
16 December 2011
16 December 2011
Opening
balance
2,108,444
645,705
125,000
75,000
2,954,149
Granted
Vested
Lapsed/Forfeited
-
-
-
-
-
-
-
(125,000)
(75,000)
(200,000)
-
-
-
-
-
Share
price at
date of
issue ($)
0.16
0.17
0.30
0.30
Closing
balance
2,108,444
645,705
-
-
2,754,149
The fair value of performance rights granted during 2015 were determined using a binomial option pricing
model which takes into account the impact of vesting conditions and the fact that the Rights may never vest.
The following table gives the weighted average of the assumptions made in determining the fair value of the
performance rights granted during the year.
Weighted average share price at grant date
Weighted exercise price
Expected volatility (expressed as weighted average volatility)
Performance period (years)
Vesting period (years)
Expected dividends
Risk-free interest rate
2015
$0.12
nil
42.7%
3
3
-
2.34%
The following table gives the assumptions made in determining the fair value of the performance rights granted
during the year.
Share price at grant date
Exercise price
Expected volatility
Performance period (years)
Vesting period (years)
Expected dividends
Risk-free interest rate
Share based payment transactions
The expense recognised during the year is shown in the following table:
Share options granted in 2014 – equity settled
Share options granted in 2015 – equity settled
Performance rights granted in 2014
Performance rights granted in 2015
Total expenses recognised as personnel expenses
15.
Other Liabilities
Non-current
Lease make good provision
CHALICE GOLD MINES | ANNUAL REPORT 2015
2014/2015
issue
2015/2016
issue
$0.125
nil
38.5%
3
3
-
2.64%
2015
$
-
4,593
-
58,915
63,508
$0.11
Nil
46.7%
3
3
-
2.08%
2014
$
-
-
72,889
-
72,889
43,132
43,132
42,000
42,000
77
68
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2015
Chalice Gold Mines Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
16.
Issued Capital
There were 282,710,802 shares on issue at 30 June 2015 (2014: 287,491,719).
(a) Movements in ordinary shares on issue
2015
2014
Balance at beginning of financial year
Shares issued on exercise of unlisted options
Shares issued on vesting of performance rights
Shares issued on acquisition of the Cameron
Gold Project
Share buy-back1
Minimum holding share buy-back2
Share issue costs
Balance at end of financial year
No.
287,491,719
-
-
-
(3,000,000)
(1,780,917)
-
282,710,802
$
44,140,306
-
-
-
(311,124)
(206,295)
-
43,622,887
No.
250,730,886
500,000
297,424
46,000,000
(10,036,591)
-
-
287,491,719
$
39,239,790
50,000
-
6,440,000
(1,549,244)
-
(40,240)
44,140,306
1On 3 March 2014, the Company announced an on-market share buy-back of up to 25,073,088 ordinary shares as part
of a capital management plan over 12 months. During the year ended 30 June 2015, 3,000,000 shares were acquired
under the share buy-back facility. The share buy-back facility ended 18 March 2015.
2During the year, the company completed an unmarketable parcel minimum holding share buy-back. Of the eligible
parcels held at 17 October 2014 (the record date), a total of 1,780,917 ordinary shares were acquired and cancelled at
a price of 11.5 cents per share.
Issuance of Ordinary Shares
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one
vote per share at shareholders’ meetings. In the event of winding up of the Company, the ordinary shareholders rank
after all other shareholders and creditors and are fully entitled to any proceeds on liquidation.
(b)
Share options
On issue at 1 July
Options forfeited or cancelled
Options exercised during the year
Options lapsed during the year
Options issued during the year
On issue at 30 June
2015
No.
1,900,000
-
-
(850,000)
500,000
1,550,000
2014
No.
5,650,000
(3,250,000)
(500,000)
-
-
1,900,000
At 30 June 2015 the Company had 1,550,000 unlisted options on issue under the following terms and
conditions:
Number
500,000
1,050,000
Expiry Date
31 October 2017
30 June 2016
Exercise Price
$
0.25
0.30
69
CHALICE GOLD MINES | ANNUAL REPORT 2015
78
Chalice Gold Mines Limited
Chalice Gold Mines Limited
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
For the year ended 30 June 2015
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2015
(c) Performance rights
(c) Performance rights
On issue at 1 July
On issue at 1 July
Issue of performance rights under the Employee Long Term Incentive
Issue of performance rights under the Employee Long Term Incentive
Plan
Plan
Performance rights vested
Performance rights vested
Performance rights lapsed
Performance rights lapsed
On issue at 30 June
On issue at 30 June
2015
2015
No.
No.
2,754,149
2,754,149
7,314,380
7,314,380
-
-
(2,754,149)
(2,754,149)
7,314,380
7,314,380
2014
2014
No.
No.
2,954,149
2,954,149
-
-
(200,000)
(200,000)
-
-
2,754,149
2,754,149
At 30 June 2015 the Company had 7,314,380 performance rights options on issue under the following terms
At 30 June 2015 the Company had 7,314,380 performance rights options on issue under the following terms
and conditions:
and conditions:
Number
Number
Expiry Date
Expiry Date
Terms
Terms
Exercise Price
Exercise Price
$
$
-
-
30 June 2018
30 June 2018
3,530,707
3,530,707
3,783,673
3,783,673
The number of performance rights that will vest will
The number of performance rights that will vest will
be solely dependent on the Company’s share price
be solely dependent on the Company’s share price
as at the measurement date of 30 June 2016 as
as at the measurement date of 30 June 2016 as
compared to the Share price hurdles outlined in the
compared to the Share price hurdles outlined in the
Remuneration Report.
Remuneration Report.
The number of performance rights that will vest will
The number of performance rights that will vest will
be solely dependent on the Company’s share price
be solely dependent on the Company’s share price
as at the measurement date of 30 June 2017 as
as at the measurement date of 30 June 2017 as
compared to the Share price hurdles outlined in the
compared to the Share price hurdles outlined in the
Remuneration Report.
Remuneration Report.
30 June 2019
30 June 2019
-
-
17.
17.
Retained earnings and reserves
Retained earnings and reserves
(a) Movements in retained earnings attributable to owners of the parent:
(a) Movements in retained earnings attributable to owners of the parent:
Balance at beginning of financial year
Balance at beginning of financial year
Profit/(loss) for the year attributable to owners of the parent
Profit/(loss) for the year attributable to owners of the parent
Transfers between equity items
Transfers between equity items
Balance at end of financial year
Balance at end of financial year
2015
2015
$
$
14,421,779
14,421,779
355,449
355,449
113,172
113,172
14,890,400
14,890,400
2014
2014
$
$
24,632,124
24,632,124
(11,559,664)
(11,559,664)
1,349,319
1,349,319
14,421,779
14,421,779
Share-based payments reserve
Share-based payments reserve
(b) Nature and purpose of reserves
(b) Nature and purpose of reserves
Other capital reserves
Other capital reserves
(i)
(i)
The share-based payments reserve is used to recognise the value of equity-settled share-based payment
The share-based payments reserve is used to recognise the value of equity-settled share-based payment
transactions provided to employees, including key management personnel, as part of their remuneration. Refer
transactions provided to employees, including key management personnel, as part of their remuneration. Refer
to note 14 for further details of these plans.
to note 14 for further details of these plans.
Foreign currency translation reserve
Foreign currency translation reserve
All other reserves as stated in the consolidated statement of changes in equity
All other reserves as stated in the consolidated statement of changes in equity
(ii)
(ii)
The foreign currency reserve is used to record exchange differences arising from the translation of the financial
The foreign currency reserve is used to record exchange differences arising from the translation of the financial
statements of foreign subsidiaries. It is also used to record the effect of exchange variances resulting from net
statements of foreign subsidiaries. It is also used to record the effect of exchange variances resulting from net
investments in foreign operations.
investments in foreign operations.
Investment revaluation reserve
Investment revaluation reserve
(iii)
(iii)
The investment revaluation reserve comprises the cumulative net change in the fair value of available-for-sale
The investment revaluation reserve comprises the cumulative net change in the fair value of available-for-sale
financial assets and investments in associates until the investments are derecognised or impaired.
financial assets and investments in associates until the investments are derecognised or impaired.
CHALICE GOLD MINES | ANNUAL REPORT 2015
79
79
70
Notes to the Consolidated Financial Statements
Chalice Gold Mines Limited
For the Year Ended 30 June 2015
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
18.
Financial instruments
(a) Capital risk management
The Group manages its capital to ensure that it will be able to continue as a going concern while maximising the
return to shareholders.
The capital structure of the Group consists of equity attributable to equity holders, comprising issued capital,
reserves and retained earnings as disclosed in notes 16 and 17.
The Board reviews the capital structure on a regular basis and considers the cost of capital and the risks
associated with each class of capital. The Group will balance its overall capital structure through new share
issues as well as the issue of debt, if the need arises.
(b) Market risk exposures
Market risk is the risk that changes in market prices such as foreign exchange rates, equity prices and interest
rates will have on the Group’s income or value of its holdings of financial instruments.
(i) Foreign exchange rate risk
The Group undertakes certain transactions denominated in foreign currencies, hence exposures to exchange
rate fluctuations arise. The Group does not hedge this exposure. The cash at bank held by the Company
currently comprises predominately US dollar funds. The Group manages its foreign exchange risk by
constantly reviewing its exposure and ensuring that there are appropriate cash balances in order to meet its
likely future commitments in each currency.
At 30 June 2015, Chalice had the following exposures to USD foreign currency:
Financial Assets
Cash and cash equivalents
Trade and other receivables
Financial Liabilities
Trade and other payables
2015
$
2014
$
35,258,192
-
43,973,035
50,350
-
4,229
The following tables summarises the impact of increases/decreases in the relevant foreign exchange rates
on the Group’s post-tax result for the year and on the components of equity. The sensitivity analysis uses a
variance of 10% movement in the USD against AUD.
Impact on gain/(loss)
Impact on equity
AUD/USD +10%
AUD/USD -10%
AUD/USD +10%
AUD/USD -10%
.
(ii) Equity prices
The Group currently has no significant exposure to equity price risk.
2015
$
(3,205,290)
3,525,819
(3,205,290)
3,525,819
2014
$
(4,001,741)
4,401,916
(4,001,741)
4,401,916
Interest rate risk
(iii)
At reporting date the Group’s exposure to market risk for changes in interest rates relates primarily to the
Group’s short term cash deposits. The Group is not exposed to cash flow volatility from interest rate changes
on borrowings, as it does not have any short or long term borrowings.
Chalice constantly analyses its exposures to interest rates, with consideration given to potential renewal of
existing positions and the period to which deposits may be fixed.
71
CHALICE GOLD MINES | ANNUAL REPORT 2015
80
Chalice Gold Mines Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2015
At reporting date, the following financial assets were exposed to fluctuations in interest rates:
Cash and cash equivalents
2015
$
39,864,989
2014
$
44,204,036
The following sensitivity analysis is based on the interest rate risk exposures in existence at reporting date.
The sensitivity is based on a change of 100 basis points in interest rates at reporting date.
In the year ended 30 June 2015, if interest rates had moved by 100 basis points, with all other variables held
constant, the post-tax result for the Group would have been affected as follows:
Impact on gain/(loss)
Impact on equity
100 bp increase
100 bp decrease
100 bp increase
100 bp decrease
Impact on Profit
2015
$
398,079
(398,079)
398,079
(398,079)
2014
$
441,060
(441,060)
441,060
(441,060)
(c)
Credit risk exposure
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails
to meet its contractual obligations.
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to
recognised financial assets is the carrying amount, net of any allowance for doubtful debts, as disclosed in the
notes to the financial statements.
It is not the Company’s policy to securitise its trade and other receivables, however, receivable balances are
monitored on an ongoing basis.
(d)
Liquidity risk exposure
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The
Board of Directors actively monitors the Group’s ability to pay its debts as and when they fall due by regularly
reviewing the current and forecast cash position based on the expected future activities.
The Group has non-derivative financial liabilities which include trade and other payables of $625,138 (2014:
$1,312,052) all of which are due within 60 days.
(e)
Net fair values of financial assets and liabilities
The carrying amounts of all financial assets and liabilities approximate their net fair values.
CHALICE GOLD MINES | ANNUAL REPORT 2015
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72
Notes to the Consolidated Financial Statements
Chalice Gold Mines Limited
For the Year Ended 30 June 2015
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
19.
Parent Entity
Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Accumulated losses
Reserves
Total equity
Financial performance
Loss for the year
Total comprehensive loss
2015
$
39,955,881
23,365,507
63,321,388
2014
$
44,644,348
18,143,312
62,787,660
473,715
28,284,446
28,758,161
520,429
28,173,037
28,693,466
34,563,227
34,094,194
43,622,888
(9,257,521)
197,860
34,563,227
44,140,306
(10,507,391)
461,279
34,094,194
(1,656,610)
(1,656,610)
(5,257,257)
(5,257,257)
Commitments and contingencies
(i) Contingencies
Other than as disclosed in note 20, the parent entity has no contingent assets or liabilities.
(ii) Operating lease commitments
Within 1 year
Within 2-5 years
Later than 5 years
345,567
350,441
-
696,008
334,525
605,741
-
940,266
20.
Commitments and contingencies
Exploration expenditure commitments
In order to maintain current rights of tenure to exploration tenements, the Group is required to perform
minimum exploration work to meet the minimum expenditure requirements specified by various governments.
These obligations are subject to renegotiation when application for a mining lease is made and at other times.
The amounts stated are based on the maximum commitments. The Group may in certain situations apply for
exemptions under relevant mining legislation or enter into joint venture arrangements which significantly reduce
working capital commitments. These obligations are not provided for in the financial report and are payable:
Within 1 year
Within 2-5 years
Later than 5 years
2015
$
394,874
630,540
-
1,025,414
2014
$
161,718
1,979,248
1,020,340
3,161,306
82
73
CHALICE GOLD MINES | ANNUAL REPORT 2015
Chalice Gold Mines Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2015
Office lease commitments
Within 1 year
Within 2-5 years
Later than 5 years
2015
$
345,567
350,441
-
696,008
2014
$
334,525
605,741
-
940,266
Contingent asset
On 27 April 2012, Chalice agreed to sell a 60 per cent interest in the Zara Project to China SFECO Group for
US$78 million plus a deferred consideration of US$2 million contingent upon the achievement of first gold
pour at the Koka Gold Mine in Eritrea. The deferred payment has not been recorded as income in the financial
statements as it is contingent upon the outcome of a possible future event, however it is considered probable
that the consideration will be paid.
21.
Cash and cash equivalents
Bank balances
Term deposits
Petty cash
Reconciliation of cash flows from operating activities
Gain/(loss) after tax from continuing operations
Profit/(loss) from discontinuing operations
Profit/(loss) before tax
Adjustments for:
Depreciation and amortisation
Net loss on sale of securities
Business development costs
Income tax expense/(benefit)
Profit/(loss) from discontinued operations
Gain on sale of plant and equipment
Foreign exchange (gains)/losses
Exploration assets written off
Share of associate’s net loss
Equity-settled share-based payment expenses
Operating loss before changes in working capital and provisions
(Increase)/decrease in trade and other receivables
(Increase)/decrease in financial assets
(decrease)/Increase in trade creditors and other liabilities
(decrease)/increase in provisions
Net cash used in operating activities
2015
$
18,645,120
21,213,621
6,248
39,864,989
2015
$
355,449
-
355,449
92,694
-
1,796,800
259,951
-
(270,439)
(4,925,210)
1,207,782
45,510
63,508
(1,373,955)
122,383
47,456
(397,858)
(27,134)
(1,629,108)
2014
$
22,969,504
21,229,796
4,736
44,204,036
2014
$
(11,231,242)
(328,422)
(11,559,664)
93,456
40,088
2,275,236
(259,529)
328,422
-
631,276
6,758,654
15,105
72,889
(1,604,067)
(84,540)
(56,058)
39,578
(12,888)
(1,717,975)
22.
Related parties
Key management personnel
The following were key management personnel of the Group at any time during the reporting period and unless
otherwise indicated were Key Management Personnel (‘KMP’) for the entire period:
Executive Directors
T R B Goyder (Managing Director)
W B Bent (Managing Director) (resigned 10 October 2014)
D A Jones (Executive Director) (resigned as Executive Director on 10 October 2014 and ceased
employment 31 October 2014)
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74
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2015
Chalice Gold Mines Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
Non-executive Directors
A W Kiernan (Chairman)
S P Quin
Executives
R K Hacker (Chief Financial Officer)
G Snow (Chief Operating Officer) (commenced 13 October 2014)
The KMP compensation included in ‘personnel expenses’ (see note 3(c)) is as follows:
Short-term employee benefits
Post-employment benefits
Termination benefits
Long term benefits
Share-based payment
2015
$
1,317,084
147,719
549,609
4,605
98,504
2,117,521
2014
$
1,420,361
116,363
-
44,456
64,022
1,645,202
Individual director’s and executive’s compensation disclosures
The Group has transferred the detailed remuneration disclosures to the Directors’ Report in accordance with
Corporations Amendment Regulations 2006 (No. 4). These remuneration disclosures are provided in the
Remuneration Report section of the Directors’ Report under Key Management Personnel remuneration and are
designated as audited.
Loans to key management personnel and their related parties
No loans were made to KMP or their related parties.
Other key management personnel transactions with the Group
A number of KMP, or their related parties, hold positions in other entities that result in them having control or
significant influence over the financial or operating policies of those entities.
A number of these entities transacted with the Group in the reporting period. The terms and conditions of the
transactions with management persons or their related parties were no more favourable than those available,
or which might reasonably be expected to be available, on similar transactions to non-director related entities
on an arm’s length basis.
The aggregate expense/(income) recognised during the year relating to key management personnel or their
related parties was as follows:
Key management personnel
Transaction
A W Kiernan
Liontown Resources Limited
Uranium Equities Limited
PhosEnergy Limited
Consulting services
Corporate services
Corporate services
Corporate services
Note
(i)
(ii)
(ii)
(ii)
2015
$
72,500
(66,000)
(49,500)
(10,000)
2014
$
82,500
(108,000)
-
-
(i)
(ii)
The Group used the consulting of Mr Kiernan during the course of the financial year. Amounts were
billed based on normal market rates for such services and were due and payable under normal payment
terms.
The Group supplied corporate services including accounting and company secretarial services under a
Corporate Services Agreement to Liontown Resources Limited (“LTR”), Uranium Equities Limited
(“UEL”) and PhosEnergy Limited (“PEL”). Mr Goyder is a director of LTR, UEQ and PEL. Mr Kiernan is a
director of PEL. Amounts were billed on a proportionate share of the cost to the Group of providing
the services and are due and payable under normal payment terms.
75
CHALICE GOLD MINES | ANNUAL REPORT 2015
84
Chalice Gold Mines Limited
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2015
Amounts outstanding (to)/from the above related parties at reporting date arising from these transactions were
as follows:
Assets and liabilities arising from the above transactions
Current payables
Trade debtors
2015
$
(6,000)
19,050
13,050
2014
$
-
66,296
66,296
23.
(a)
Related party disclosure
Significant investments in subsidiaries
The consolidated financial statements include the financial statements of Chalice Gold Mines Limited and its
subsidiaries listed in the following table:
Country of
Incorporation
% Equity Interest
2014
2015
Investment
$
2015
2014
Name
Parent entity
Chalice Gold Mines Limited
Subsidiaries
Chalice Operations Pty Ltd (i)
Chalice Gold Mines (Eritrea) Pty Ltd
Western Rift Pty Ltd (ii)
(i) Subsidiaries of Chalice Operations
Pty Ltd
Keren Mining Pty Ltd
Universal Gold Pty Ltd
Sub-Sahara Resources (Eritrea) Pty
Ltd
(ii) Subsidiaries of Western Rift Pty
Ltd
Chalice Gold Mines (Ontario) Inc.(iii)
Coventry Rainy Inc.
Coventry Ontario Inc.
(iii) Subsidiaries of Chalice Gold
Mines (Ontario) Inc.
Cameron Gold Operations Ltd
Chalice Gold Mines (Quebec) Inc.
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Canada
Canada
Canada
Canada
Canada
Chalice Gold Mines (Exploration) Inc.
Canada
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
6,802,388
-
20,000
6,802,388
-
20,000
100
100
100
-
1,358,223
-
1,358,223
-
-
100
100
100
-
1,402,414
415,313
-
1,402,414
415,313
100
-
5,709,942
1.24
5,551,687
-
-
1.24
-
24.
Interest in joint operation
(a) At the end of the financial year the Group held the following interest in exploration licences:
Mogoraib North Exploration Licence
Country
Eritrea
2015
%
-
2014
%
60
CHALICE GOLD MINES | ANNUAL REPORT 2015
85
76
Notes to the Consolidated Financial Statements
Chalice Gold Mines Limited
For the Year Ended 30 June 2015
Notes to the Consolidated Financial Statements
For the year ended 30 June 2015
The Mogoraib North exploration licence was held through a joint operation, whereby the Company held a 60%
interest and 40% was held by the Eritrean National Mining Corporation (“ENAMCO”). This joint operation was
wound up in 2015, as part of the Company’s formal exit from Eritrea.
(b) Included in the assets and liabilities of the Group are the following items which represent the Group’s
interest in the assets and liabilities of the joint operation
Current assets
Cash at bank
Trade and other receivables
Non-current assets
Exploration and evaluation assets
Property, plant and equipment
Total assets
Current liabilities
Trade and other payables
Total liabilities
2015
$
2014
$
-
-
-
-
-
-
-
-
-
-
14,152
50,350
64,502
-
194,135
194,135
258,637
4,229
4,229
4,229
The joint operation has no contingent liabilities, assets or exploration commitments as at 30 June 2015 (30
June 2014: nil).
25.
Events subsequent to reporting date
There were no significant events after balance date that require disclosure in the financial report.
77
CHALICE GOLD MINES | ANNUAL REPORT 2015
86
Chalice Gold Mines Limited
Directors’ Declaration
Directors’ Declaration
1.
In the opinion of the directors of Chalice Gold Mines Limited (the ‘Company’):
a.
the financial statements, notes and the additional disclosures in the directors’ report designated as audited,
of the Group are in accordance with the Corporations Act 2001 including:
i. giving a true and fair view of the Group’s financial position as at 30 June 2015 and of its performance
for the year ended on that date; and
ii. complying with Australian Accounting Standards (including the Australian Accounting Interpretations)
and the Corporations Regulations 2001.
b.
there are reasonable grounds to be that the Company will be able to pay its debts as and when they become
due and payable.
c. The financials and notes thereto are in accordance with international Financial Reporting Standards issued
by the International Accounting Standards Board.
2. This declaration has been made after receiving the declarations required to be made to the directors in accordance
with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2015.
This declaration is signed in accordance with a resolution of the Board of Directors.
Dated at Perth the 28th day of September 2015
Signed in accordance with a resolution of the Directors:
Tim Goyder
Managing Director
CHALICE GOLD MINES | ANNUAL REPORT 2015
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78
Independent Auditor’s Report
INDEPENDENT AUDITOR’S REPORT
To the members of Chalice Gold Mines Limited
Report on the Financial Report
We have audited the accompanying financial report of Chalice Gold Mines Limited (“the company”),
which comprises the consolidated statement of financial position as at 30 June 2015, the
consolidated statement of comprehensive income, the consolidated statement of changes in equity
and the consolidated statement of cash flows for the year then ended, notes comprising a summary
of significant accounting policies and other explanatory information, and the directors’ declaration for
the Group. The Group comprises the company and the entities it controlled at the year’s end or from
time to time during the financial year.
Directors’ responsibility for the financial report
The directors of the company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the directors determine is necessary to enable the preparation
of the financial report that is free from material misstatement, whether due to fraud or error.
In Note 1(b), the directors also state, in accordance with Accounting Standard AASB 101:
Presentation of Financial Statements, that the financial report complies with International Financial
Reporting Standards.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted
our audit in accordance with Australian Auditing Standards. Those standards require that we comply
with relevant ethical requirements relating to audit engagements and plan and perform the audit to
obtain reasonable assurance whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial report. The procedures selected depend on the auditor’s judgement, including the
assessment of the risks of material misstatement of the financial report, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the Group’s
preparation and fair presentation of the financial report in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by the directors, as well as
evaluating the overall presentation of the financial report.
Our audit did not involve an analysis of the prudence of business decisions made by directors or
management.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations
Act 2001.
HLB Mann Judd (WA Partnership) ABN 22 193 232 714
Level 4, 130 Stirling Street Perth WA 6000. PO Box 8124 Perth BC 6849 Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533.
Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au
Liability limited by a scheme approved under Professional Standards Legislation
HLB Mann Judd (WA Partnership) is a member of
International, a worldwide organisation of accounting firms and business advisers.
79
CHALICE GOLD MINES | ANNUAL REPORT 2015
63
Independent Auditor’s Report
Auditor’s opinion
In our opinion:
(a)
the financial report of Chalice Gold Mines Limited is in accordance with the Corporations Act
2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2015 and of its
performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001;
and
(b)
the financial report also complies with International Financial Reporting Standards as disclosed
in Note 1(b).
Report on the Remuneration Report
We have audited the remuneration report included in the directors’ report for the year ended 30 June
2015. The directors of the company are responsible for the preparation and presentation of the
remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the remuneration report, based on our audit conducted in accordance
with Australian Auditing Standards.
Auditor’s opinion
In our opinion the remuneration report of Chalice Gold Mines Limited for the year ended 30 June
2015 complies with section 300A of the Corporations Act 2001.
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
28 September 2015
L Di Giallonardo
Partner
CHALICE GOLD MINES | ANNUAL REPORT 2015
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64
ASX Additional Information
Chalice Gold Mines Limited
ASX Additional Information
Additional information required by the Australian Securities Exchange Limited Listing Rules and not disclosed elsewhere in
this report is set out below.
Shareholdings
Substantial shareholders
The number of shares held by substantial shareholders advised to the Company and their associated interests as at
25 September 2015 were:
Shareholder
Number of ordinary
shares held
Timothy Rupert Barr Goyder
Franklin Resources Inc
Lujeta Pty Ltd
41,733,533
31,107,008
20,182,750
Percentage of
capital held
%
14.76
11.00
7.14
Class of shares and voting rights
At 25 September 2015 there were 1,830 holders of the ordinary shares of the Company, 3 holders of unlisted share options
and 4 holders of performance rights. The share options and performance rights have been granted under the Company’s
Employee Share Option Plan and Employee Long Term Incentive Plan.
The voting rights to the ordinary shares set out in the Company’s Constitution are:
“Subject to any rights or restrictions for the time being attached to any class or Classes of shares -
a)
b)
at meetings of members or classes of members each member entitled to vote in person or by proxy or
attorney: and
on a show of hands every person who is a member has one vote and on a poll every person in person or by
proxy or attorney has one vote for each ordinary share held.”
Holders of options or performance rights do not have voting rights.
Distribution of equity security holders as at 25 September 2015:
Category
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,000 – 100,000
100,001 and over
Total
Number of equity security holders
Ordinary
Shares
104
230
469
827
200
1,830
Unlisted Share
Options
-
-
-
-
3
3
Performance
Rights
-
-
-
-
4
4
The number of shareholders holding less than a marketable parcel at 25 September 2015 was 253.
81
CHALICE GOLD MINES | ANNUAL REPORT 2015
93
Twenty largest Ordinary Fully Paid Shareholders as at 25 September 2015
Name
Timothy R B Goyder
National Nominees Limited
Lujeta Pty Ltd
J P Morgan Nominees Australia Limited
Citicorp Nominees Pty Limited
CDS & Co
HSBC Custody Nominees (Australia) Limited
Nefco Nominees
Jetosea Pty Ltd
Calm Holdings Pty Ltd
Claw Pty Ltd
Piat Corp Pty Ltd
ABN Amro Clearing Sydney Nominees Pty Ltd
Goldfire Enterprises Pty Ltd
Sundowner International Limited
Greenslade Holding Pty Ltd
Clement Pty Ltd
Super Seed Pty Ltd
Teragoal Pty Ltd
Mr Philip Scott Button + Ms Philippa Ann Nicol
Total
ASX Additional Information
Number of ordinary
shares held
Percentage of
capital held
%
41,733,533
40,891,058
20,182,750
14,607,482
13,380,496
10,580,401
9,732,248
8,248,724
7,561,241
4,000,000
4,000,000
3,650,000
3,595,027
3,490,237
1,949,115
1,816,667
1,810,681
1,500,000
1,400,000
1,348,261
195,447,921
14.76
14.46
7.14
5.17
4.73
3.74
3.44
2.92
2.68
1.41
1.41
1.29
1.27
1.23
0.69
0.64
0.64
0.53
0.50
0.48
69.13
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95
Level 2, 1292 Hay Street
West Perth, Western Australia 6005
GPO Box 2890
Perth, Western Australia 6001
T: +618 9322 3960 F: +618 9322 5800
www.chalicegold.com