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From: B-Haile (eritrea.lave@comhem.se)
Date: Tue Jan 25 2011 - 11:06:17 EST
Chalice Gold Mines Limited: Quarterly Report for Period Ended December 31, 2010
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Posted : Tue, 25 Jan 2011 12:20:10 GMT
Author : Chalice Gold Mines Limited
Category : Press Release
PERTH, AUSTRALIA -- 01/25/11 -- Overview
During the Quarter, Chalice Gold Mines (TSX: CXN)(ASX: CHN) continued to ramp up its near-mine and regional exploration activities at the Zara Gold Project in Eritrea, East Africa, with a focus on identifying new prospects to increase resources in the vicinity of the high-grade Koka Gold Deposit, which hosts an indicated Mineral Resource of 840,000oz at a grade of 5.3g/t gold.
Early results from a key deep penetration Induced Polarisation (IP) survey over the Koka-Konate corridor reveal strong IP resistivity targets below the Koka Deposit and the Koka East prospect. Strong IP chargeability anomalies have also been identified to the west of the Koka Deposit. The results of the IP survey have provided exceptional targets for drilling in early 2011.
Follow-up geochemical sampling and geological mapping on the Zara North licence has continued to confirm previously reported gold anomalism. Identifying the source of this anomalism will be a key focus for intensive exploration planned over the coming months.
During the Quarter, the Eritrean Government advised its intention to purchase, at fair value, a 30% paid participating interest in the Zara Project through the Eritrean National Mining Corporation (ENAMCO). Discussions in relation to the acquisition are currently ongoing.
Overview
During the Quarter, Chalice Gold Mines (TSX: CXN)(ASX: CHN) continued to ramp up its near-mine and regional exploration activities at the Zara Gold Project in Eritrea, East Africa, with a focus on identifying new prospects to increase resources in the vicinity of the high-grade Koka Gold Deposit, which hosts an indicated Mineral Resource of 840,000oz at a grade of 5.3g/t gold.
Early results from a key deep penetration Induced Polarisation (IP) survey over the Koka-Konate corridor reveal strong IP resistivity targets below the Koka Deposit and the Koka East prospect. Strong IP chargeability anomalies have also been identified to the west of the Koka Deposit. The results of the IP survey have provided exceptional targets for drilling in early 2011.
Follow-up geochemical sampling and geological mapping on the Zara North licence has continued to confirm previously reported gold anomalism. Identifying the source of this anomalism will be a key focus for intensive exploration planned over the coming months.
During the Quarter, the Eritrean Government advised its intention to purchase, at fair value, a 30% paid participating interest in the Zara Project through the Eritrean National Mining Corporation (ENAMCO). Discussions in relation to the acquisition are currently ongoing.
1. 3D IP Survey
During the Quarter, the Company reported encouraging early results from the Induced Polarisation (IP) survey undertaken over the Koka-Konate corridor on the central Zara Project leases.
The state-of-the-art 3D deep-penetration IP survey covers an area of 15km2 within the highly prospective 6km long Koka-Konate structural corridor (see Figure 1).
The survey, which is designed to reveal new targets with the potential to host repeats of the Koka mineralisation, has already yielded some attractive targets, including resistivity anomalies below the currently defined Koka deposit and a second anomaly in an undrilled area under the Koka East trend. Resistivity anomalies are often associated with silicification that is associated with gold mineralisation.
In addition, the survey identified a large area of chargeability anomalies to the west of the Koka deposit which, while currently unexplained, could represent sulphide mineralisation.
To view "Figure 1: IP survey, Koka-Konate-Fah 'Corridor' with IP survey area outlined in red", please visit the following link:
http://media3.marketwire.com/docs/clcfig1.pdf
The survey comprises 26 double offset dipole-dipole arrays covering an area of approximately 15km2 (7.5km x 2km) with 64 Rx channels being read at 50m spacings to provide high resolution data to depths potentially exceeding 500 metres.
Analysis of initial results from the first four arrays of the survey indicates that good quality data is being produced with penetration to a depth of at least 600 metres being achieved.
Two very strong resistive zones are defined in the data, one at depth beneath the Koka deposit and another at depth on the Koka East trend (see Figure 2).
To view "Figure 2: IP resistivity Anomalies - Koka and Koka East (looking north)", please visit the following link:
http://media3.marketwire.com/docs/clcfig2.pdf
Previous shallow-penetration IP surveys conducted at Koka identified a strong resistivity anomaly which is believed to reflect the strong silicification associated with mineralisation. This signature continues and redevelops strongly at depth, potentially reflecting further silicification and mineralisation.
The anomalous zone extends for over 600 metres along strike, is open to the south and at depth, and has core cross-sectional dimensions of more than 100 x 100 metres. This zone lies beneath existing drill coverage and constitutes a priority target for exploration.
Koka East lies approx. 80 metres into the hangingwall of Koka and at surface consists of Koka-style quartz stockwork mineralisation. Limited drilling of this zone earlier this year returned generally disappointing results (best intercept 1 metre grading 13.67 g/t Au) despite intense quartz veining and silicification being encountered in most holes.
This appears to be reflected in a small IP resistivity anomaly evident in the current survey. The newly identified deep anomalous zone extends for more than 450 metres along strike, is open to the south and at depth and has core cross-sectional dimensions of greater than 100 x 100 metres. The anomaly lies north of the area previously drilled and is much stronger, implying that the silicification redevelops and intensifies at depth, representing a high priority drill target.
The survey has also identified a number of strong chargeability anomalies, mostly at depth to the west of Koka (see Figure 3). The origin of these anomalies is uncertain but they may reflect sulphide concentrations in sediments that lie to the west of the microgranite hosting the Koka mineralisation.
The smaller, more discrete, of these anomalies lies south along strike from known vein-hosted gold mineralisation in sediments at the Koka North prospect and could therefore represent a strengthening of this mineralisation reflected in higher levels of chargeable sulphides.
These anomalies will also require drill testing.
To view "Figure 3: IP Chargeability Anomalies - Koka and Koka West (looking north)", please visit the following link:
http://media3.marketwire.com/docs/clcfig3.pdf
The Company regards these early encouraging results as a strong validation of the use of this new generation of IP technology at Koka and is planning to commence drill testing in early April 2011.
2. Koka North Stream Sediment Geochemistry
Results from a reconnaissance Bulk Leach Extractable Gold (BLEG) drainage sampling program completed over the Zara North and Zara South Prospecting Licenses has outlined an extensive zone of gold anomalism in the western half of the Zara North tenement.
Follow-up in-fill sampling using conventional stream sediment sampling has confirmed that this gold anomalism extends over a strike length of approx. 10 km (see Figure 4) with values of up to 876ppb gold recorded.
Field checking has revealed artisanal workings in several of the anomalous drainages, often associated with a semi-continuous high-strain zone with intense carbonate-sericite alteration and quartz veining over a 30-50m wide zone that extends the length of the anomalous zone (see Figure 5). Such shearing and alteration is often related to gold systems such as Koka. Reconnaissance rock chip sampling along this zone has returned assays of up to 11 g/t gold in a grab sample.
Chalice has commenced a program of detailed geological mapping and soil sampling to identify both the source and extent of the anomalism in the Zara North tenements. This program will be a major focus over the coming months and the Company has assigned additional technical staff to expedite its progress.
To view "Figure 4: Anomalous BLEG and -80 mesh gold values - northern Zara Project", please visit the following link:
http://media3.marketwire.com/docs/clcfig4.pdf
To view "Figure 5: Zara North prospect - carbonate-sericite alteration associated with veining in source area of BLEG and Conventional -80 mesh drainage geochemistry gold anomalism", please visit the following link:
http://media3.marketwire.com/docs/clcfig5.pdf
3. Konate Drilling Results
Further results were received from diamond drilling completed at the Konate prospect last Quarter. Some 20 holes were drilled for approx. 3,600 metres over a strike length of around 600 metres with a focus on the southern 200 metres of the system, where intensive artisanal workings were developed historically on a Koka-style quartz stockwork in microgranite.
Initial conclusions are that the Konate system warrants further drilling; however, this work will await the completion of the 3D deep-penetration IP survey currently underway in the Koka-Konate-Fah corridor.
An updated table presenting results from all visually mineralised intersections is presented in Table 1 below:
Read more http://www.earthtimes.org/articles/press/december-31-2010,1626773.html
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