The first diamond drill hole at the Karri Prospect (PHD001), the first-ever test at depth into a ‘blind target', has intersected 2.55m @ 2.29g/t Au within 11.45m @ 1.02g/t Au from 284m. The gold zone is associated with a zone of stockwork quartz veining in Castlemaine Group sediments, a similar association to other major gold systems in the region.

The 4km long Karri gold trend defined by AC drilling remains continuous, providing an exceptional scale, high-quality target for further deep drilling. Assays are pending for a further 27 AC holes and two diamond holes drilled at Karri.

The first diamond drill hole at the Ironbark North Target (PHD002) intersected encouraging strong alteration and several intervals of anomalous gold. The diamond drill programme at the project continues with two diamond rigs currently drilling on 500m-1km spaced drill lines at Karri.

Drilling also continues at the Julimar nickel-copper-PGE project, Western Australia, where a diamond rig and an RC rig are currently drilling.

Chalice's MD, Alex Dorsch, said: "This is the first-ever test into fresh rock within our Pyramid Hill project area, so to have intersected a primary gold zone straight away is an exciting development - and one that provides further indications of the potential to discover a sizeable gold system that the Bendigo region is renowned for.

"Given that this was essentially a geological hole into a ‘blind target', we are very encouraged that it has delivered both a significant zone of primary gold mineralisation and valuable information about the geological and structural setting at depth.

"The first hole has successfully demonstrated that the key elements of the mineralisation styles at Bendigo and Fosterville, namely gold-bearing quartz veins associated with tightly folded sediments, are present at Karri and the potential remains for a significant gold discovery.

"Drilling continues at the Pyramid Hill project with two diamond rigs, in tandem with the rapid escalation of exploration activity at our new nickel-copper-PGE discovery at our Julimar project. This gives our shareholders exposure to two exciting greenfield projects in Australia with genuine company-making potential."

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