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From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Wed Apr 13 2011 - 09:14:09 EDT
Chalice Gold Mines Limited Quarterly Activity and Cashflow Reports
PERTH, WESTERN AUSTRALIA--(Marketwire - April 13, 2011) - Chalice Gold Mines
("The Company") (TSX:CXN)(ASX:CHN) advises that its Activity and Cash Flow
Reports for the quarter ended March 31, 2011 have been issued today. The
full texts of the Reports are available at the Company's website
<http://www.chalicegold.com> www.chalicegold.com and under the Company's
profile at <http://www.sedar.com> www.sedar.com.
Highlights:
· New drilling programs to commence in April at the Zara Gold
Project in Eritrea targeting additions to the current 840,000oz Indicated
Mineral Resource after completion of near mine and regional exploration
activities during the March Quarter.
· Drilling will initially test several attractive new targets
revealed by a recently completed Induced Polarisation (IP) survey undertaken
over the Koka-Konate corridor.
· Significant new soil anomaly (>50ppb) identified at Hamid Keir
(Zara North) which extends over a strike length of 1,400m and is up to ~
120m wide, with soil gold values ranging up to 23,000ppb and 29,500ppb.
· Two new Exploration Licences granted in Eritrea:
· Mogoraib North EL (555km2), 10km north of Nevsun Resources'
world-class Bisha gold and base metal deposit.
· Hurum EL (275km2) which adjoins Zara South and straddles the same
major regional structure hosting the Koka Deposit.
· Initial exploration program involving geological mapping,
geochemical sampling and an airborne magnetic, radiometric and
electro-magnetic (EM) survey using the VTEM system set to commence at
Mogoraib North.
· Airborne magnetic and radiometric survey completed over Zara and
Hurum Exploration Licences.
* Commercial discussions progressed with ENAMCO to agree the terms and
purchase price for the acquisition of their 30% paid participating interest
in the Zara Project.
About Chalice Gold Mines Limited:
Chalice Gold Mines Limited, based in Western Australia, owns 100% of the
strategically positioned 615 square kilometres Zara Project in Eritrea, East
Africa. Chalice has completed a Feasibility Study, with development targeted
to commence in 2011. The Government of Eritrea has the right to acquire, at
fair value, a 30% interest in the Project in addition to a 10% carried
interest.
In addition to the Zara project, Chalice has recently been granted a number
of major exploration licences totalling more than 1,000 square kilometres.
All of the new licences are in the proximity of the Zara Deposit and the
world-class Bisha Deposit and share the same geology.
Chalice's exploration tenure remains virtually untouched by modern
exploration, with numerous artisanal gold mining sites, gold geochemical
anomalies presenting numerous targets for immediate follow-up. Based on
these targets and others being generated by an active exploration program,
Chalice expects to quickly build on its existing Koka gold resource to
maximise the project's economic potential.
Chalice has a Board of Directors and management with a wealth of expertise
in the mining and exploration sectors both in Africa and Australian. The
robust gold resource at the Koka Deposit and the potential for further gold
and base metals discoveries within the Company's tenure places Chalice in an
excellent position for rapid future growth.
All material information on Chalice can be found on the Company's website at
<http://www.chalicegold.com/> www.chalicegold.com or at SEDAR at
<http://www.sedar.com/> www.sedar.com.
DR DOUG JONES, Managing Director
Competent Persons and Qualified Person Statement
The Mineral Resource estimate was prepared by Mr. John Tyrrell who is a
Member of the Australasian Institute of Mining and Metallurgy. Mr. Tyrrell
is a full time employee of AMC and has sufficient experience in gold
resource estimation to act as Competent Person as defined in the 2004
Edition of the 'Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (the JORC Code)' and is a Qualified
Person under National Instrument 43-101 – 'Standards of Disclosure for
Mineral Projects'. Mr Tyrrell consents to the inclusion of this information
in the form and context in which it appears.
Sampling Procedures and Quality Assurance
Soil samples are collected from sites located using GPS. Soil material is
collected from a depth of 5-20cm with a plastic trowel and sieved to 180µm
mesh using stainless steel sieves. Approximately 120 grams of material is
placed into two small Kraft paper sample bags, sealed and tagged with a
unique number, with both bags being numbered identically. One of these
samples is sent to NATA-accredited Intertek-Genalysis Laboratories in Perth
Western Australia for assay whilst the other sample is retained as a
duplicate in the Chalice Eritrea sample storage.
Samples are analysed for multi-element suites using ICP-OES after aqua regia
digest on a 25g sub-sample and vacuum filtering prior to voluming to
preclude errors resulting from insoluble residues. Au is analysed as an
additional element utilizing Graphite Furnace AAS. Chalice Gold Mines
inserts field blanks, field duplicates, repeats and certified reference
materials (CRMs) into its sample sequences sent to the routine and umpire
laboratories to control the accuracy and reliability of the analytical
results.
Blank samples are introduced at the rate of 1 per 20 to 25 routine samples
to test contamination during sample preparation. Certified reference
materials (CRMs) are submitted with all sample batches at the rate of 1 per
20-25 routine samples. The CRM's inserted have values ranging from very low
to high grade. 5% of the returned coarse reject samples are routinely
submitted to an umpire laboratory (Ultra-trace Laboratories, Perth, Western
Australia) to test the analytical precision of the principal laboratory.
Standard samples are included at a rate of 1 per 20 routine samples and
there is at least one standard per submission. The Company monitors the
QA/QC information to ensure there are no systematic biases or overall
analytical quality issues.
Rock-chip samples are collected and assayed in essentially the same manner
except that the sieving step is omitted and 1-2 kg of sample is collected
and bagged in a heavy-duty plastic bag before dispatch to Intertek-Genalysis
Laboratories.
Diamond drill core is logged and photographed prior to splitting with a core
saw. One half of the core is retained on site whilst the other half is
bagged and dispatched to Africa Horn Preparation facility (a division of
NATA-accredited Intertek-Genalysis Laboratories) in Asmara for crushing to
-2mm and splitting. As per the above, certified reference materials (CRMs)
are submitted with all sample batches at the rate of 1 per 20-25 routine
samples. The coarse reject is stored and the split sub-sample is pulverised
to a nominal 95% passing -75 micron using an LM2 pulveriser.
The pulverised pulp is further spilt into two 100g to 150g sub-samples; a
primary pulp sample is sent for analysis and a duplicate pulp sample is kept
as a reference and the remaining fine (75 micron) reject is stored. A quartz
wash is pulverized between samples and is stored for random testing of
preparation contamination.
The sample pulps are transported by air to NATA-accredited
Intertek-Genalysis Laboratories in Perth Western Australia for assay. For
drill core and RC samples used for resource analysis the majority of gold
assaying is completed using a lead collection of 50g fire assay method with
an atomic absorption spectroscopy (AAS) finish. Additional specified
multi-element assays are carried out by ICP-OES on 25g sub-sample prepared
using aqua regia digest. Bulk density determinations using water immersion
method are carried out on every metre of core within expected mineralisation
and every 10m within waste zones. QA/QC monitoring is applied to all drill
core assays as per the protocols described above.
Forward Looking Statements
This document may contain forward-looking information within the meaning of
Canadian securities legislation and forward-looking statements within the
meaning of the United States Private Securities Litigation Reform Act of
1995 (collectively, forward-looking statements). These forward-looking
statements are made as of the date of this document and Chalice Gold Mines
Limited (the Company) does not intend, and does not assume any obligation,
to update these forward-looking statements.
Forward-looking statements relate to future events or future performance and
reflect Company management's expectations or beliefs regarding future events
and include, but are not limited to, statements with respect to the
estimation of mineral reserves and mineral resources, the realization of
mineral reserve estimates, the timing and amount of estimated future
production, costs of production, capital expenditures, success of mining
operations, environmental risks, unanticipated reclamation expenses, title
disputes or claims and limitations on insurance coverage. In certain cases,
forward-looking statements can be identified by the use of words such as
plans, expects or does not expect, is expected, budget, scheduled,
estimates, forecasts, intends, anticipates or does not anticipate, or
believes, or variations of such words and phrases or statements that certain
actions, events or results may, could, would, might or will be taken, occur
or be achieved or the negative of these terms or comparable terminology. By
their very nature forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different from
any future results, performance or achievements expressed or implied by the
forward-looking statements. Such factors include, among others, risks
related to actual results of current exploration activities; changes in
project parameters as plans continue to be refined; future prices of mineral
resources; possible variations in ore reserves, grade or recovery rates;
accidents, labour disputes and other risks of the mining industry; delays in
obtaining governmental approvals or financing or in the completion of
development or construction activities; as well as those factors detailed
from time to time in the Company's interim and annual financial statements
and management's discussion and analysis of those statements, all of which
are filed and available for review on SEDAR at <http://sedar.com>
sedar.com. Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other factors
that cause actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements.
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