From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Tue Jan 19 2010 - 06:34:24 EST
Chalice Gold - further results from Koka drilling
Tues, 19 Jan 2010
HIGHLIGHTS
. Results from infill drilling continue to confirm the
continuity and high grade nature at the rich Koka Gold Deposit at the Zara
Project in Eritrea.
. Close to 80% of infill drilling program now completed with
further assays pending.
. Geotechnical drilling program about to commence.
. Planning of follow-on drill programs at Koka East and Koka
South underway.
Chalice Gold Mines Limited (ASX: CHN) is pleased to advise that the further
results from infill drilling at its Koka Gold Deposit in Eritrea continue to
confirm the robust nature of the ore body.
The new results come from diamond drill holes ZARD 129, 130, 131, 132 and
134 which all achieved significant intersections of quartz stockwork
mineralisation within the Koka Main Zone. Better intersections included:
. 8 metres grading 9.47 grams of gold per tonne in ZARD 129;
. 6 metres grading 26.92 grams of gold per tonne in ZARD 130;
. 11 metres grading 4.68 grams of gold per tonne in ZARD 131;
. 18 metres grading 29.30 grams of gold per tonne in ZARD 132,
and;
. 11 metres grading 8.29 grams of gold per tonne in ZARD 134.
A complete tabulation of results is provided in Table 1.
Assays have now been received from six holes (ZARD 128 having been
previously reported) from a planned 31 hole, 5,000 metre infill diamond
drilling programme designed to bring further confidence to the high grade
mineralisation of the Koka Main Zone and to be used as part of the final
resource estimation for the Koka Bankable Feasibility Study. A total of 25
diamond drill holes have now been completed and further assay results will
be released to the market as they become available (Figure 2).
Following completion of this infill drilling program the drill rigs will
focus on exploration of nearby targets, particularly the Koka South and Koka
East zones, detailed planning for which has commenced. In addition, a five
hole geotechnical programme designed to provide data on ground conditions in
the pit highwall will commence shortly.
Koka, which is the flagship deposit at Chalice's 80 per cent-owned Zara
Project, has JORC compliant Indicated and Inferred resources of 944,000
ounces.
About the Zara Gold Project
The Zara Joint Venture comprises four Exploration Licenses and two
Prospecting Licenses covering an area of 615km2 situated in northern
Eritrea, approximately 160km northwest of Asmara city (Figure 1). Chalice
holds an 80% interest in the project with the remaining 20% held by Dragon
Mining (ASX: DRA). The Koka Gold Deposit within the project contains an
estimated resource of 5 million tonnes of ore containing 944,000ozs gold,
grading 5.8grams of gold per tonne. Metallurgical test work indicates +95%
recovery with ~60% recovered by gravity.
----[This List to be used for Eritrea Related News Only]----