Chalice Gold Mines buying back royalty over gold project in Canada

Chalice Gold Mines (ASX:CHN) has exercised its right to buy back two-thirds of the existing 3% net smelter return royalty over the Cameron Gold Deposit part of the Cameron Gold Project in Ontario Canada.

Acquisition of part of the royalty for C$2 million (A$2.07 million) is expected to increase the net present value of the project.

This is timely given the expected completion of a Preliminary Economic Assessment for the Cameron Project in April 2015.

The Cameron deposit will now carry a 1% NSR in addition to a separate smaller royalty of C$0.30 per short ton of ore mined and milled.

Cameron has an open cut resource of 9.17 million tonnes at 1.96 grams per tonne or 577600 ounces of contained gold and an underground resource of 6.4 million tonnes at 2.82g/t or 582400 ounces of gld.

Chalice is well funded with about $43 million in cash.

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