From: Biniam Tekle (biniamt@dehai.org)
Date: Tue Jul 13 2010 - 12:48:32 EDT
http://www.miningweekly.com/article/chalice-to-apply-for-gold-mining-lease-in-eritrea-2010-07-13
Chalice to apply for gold-mining lease in Eritrea
By: Esmarie Swanepoel
13th July 2010
Updated 31 minutes ago
PERTH (miningweekly.com) – ASX-listed gold-miner Chalice Gold expects the
green light for the development of its Koka gold project, in Eritrea, as
early as the beginning of next year, MD *Doug Jones *said on Tuesday.
The company reported that an independent feasibility study had delivered
positive results, indicating that the Koka project could support a 104
000-oz/y mine with a life of seven years.
Jones said that Chalice would apply for a mining lease for the Koka deposit,
and would also assess the various options of financing the project.
The preproduction capital costs were estimated at $122-million.
“Chalice is currently working on delivering the remaining key
recommendations from the feasibility study to allow mine permitting process
and negotiation of a mining agreement with the government of Eritrea to
start,” Jones said.
Openpit ore reserves were estimated at 4,63-million tons, grading 5,1 g/t
gold. The project is forecasted have a mill throughput of 600 000 t/y,
rising to 700 000 t/y from year five.
“The completion of the Koka feasibility study is a major accomplishment for
the company,” said Jones.
Chalice also reported that drilling has started at the Konate prospect,
south of Koka, where extensive artisanal workings have been developed on
Koka-style quartz mineralisation.
Edited by: Mariaan Webb
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