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CHALICE GOLD MINES LIMITED - ASX: CHN
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Description
Chalice Gold Mines Limited is an East African-focused company developing the high grade 840,000 ounce Koka Gold Deposit, part of the Zara Project in Eritrea. Chalice has recently completed a Feasibility Study, with development targeted to commence in 2011. An aggressive exploration program for gold and base minerals is also being undertaken to rapidly expand the existing resource base in the virtually untouched, yet highly endowed Arabian-Nubian Shield.
Zara Project, Eritrea
The Zara Project consists of six contiguous granted licences covering an area totalling 615 square km situated in northern Eritrea, approximately 160 km northwest of the country’s capital, Asmara. A significant high grade gold deposit has been defined at the Koka Gold Deposit, with a JORC Indicated and Inferred resource of 5 million tonnes at 5.3 grams per tonne gold for 840,000 ounces of contained gold.
Chalice has completed a Feasibility Study with the aim of commencing development at the Koka Gold Deposit in 2011. Combined with an aggressive exploration program for gold and base metals, Chalice and its shareholders are well placed for rapid growth.
The Government of Eritrea has advised that it intends to acquire, at fair value, an additional 30% paid participating interest in the Koka Gold Deposit. This is in addition to a 10% carried interest, which will take the Government's ownership in the Koka Gold Deposit to a total of 40%.
The price, terms and conditions of the acquisition are currently being discussed; however, it is expected that the method and timing of the valuation to determine the fair value is expected to, in general, follow the precedent set by the Bisha Project which is held 60% by Nevsun Resources Limited and 40% by Eritrean National Mining Corporation.
Mogoraib North, Eritrea
The 555 sq km Mogoraib North licence lies approximately 10 kilometres north of the world class Bisha polymetallic Volcanic-hosted Massive Sulphide (VHMS) deposit owned by Nevsun Resources Ltd. (TSX:NSU)(AMEX:NSU) (60%) and the Eritrean National Mining Corporation (ENAMCO) (40%) which commenced production in early January this year.
Hurum
The 275 sq km Hurum licence lies adjacent to and southwest of the Company's Zara South licence.
Gnaweeda Project, Western Australia (Teck Cominco 70%, Chalice 30%)
The Gnaweeda Gold Project tenure covers almost an entire Archaean greenstone belt in the northern Murchison Province of Western Australia, with proven gold mineralisation potential. Turnberry, the most advanced gold prospect, has received limited deep RC and diamond drilling, which has intersected significant gold mineralisation in most of the holes. The mineralisation remains open at depth and laterally in every direction.
Teck Australia Pty Ltd (“Teck”) has entered into an exclusivity agreement with TSX Venture Exchange listed company Kent Exploration Inc. (“Kent”) which contemplates Kent earning 100% of Teck’s interest in the Gnaweeda Gold Project by spending $3 million, subject to Teck retaining a 75% claw-back.
Mine For
gold
Location of operation(s)
Eritrea, Western Australia
Address
Level 2 , 1292 Hay Street
WEST PERTH, WA, AUSTRALIA
Phone
(08) 9322 3960
Website
Last Updated
14/04/2011
The data on Australian Shares.com is intended as a guide only and is provided purely as an indication of what information can be found through official announcements. Data on this website should not be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. The publisher (Intaanetto Pty Ltd) will not be held liable for any loss arising from the use of this website.
