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From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Mon Aug 09 2010 - 05:50:08 EDT
Chalice Gold Mines to raise $12.6M for Eritrean Gold Project exploration
Monday, August 09, 2010company news image
Chalice Gold Mines (ASX: CHN) has proposed a 1$B!>(Bfor$B!>(B6 rights issue to
existing shareholders at 42 cents to raise $12.6M before issue costs to
underpin the continued exploration and development of the company$B!G(Bs 100%$B!>(B
owned Zara Gold Project in Eritrea, East Africa, which has a high grade
Indicated gold Resource (840,000 oz @ 5.3 g/t).
On 13 July Chalice completed a Definitive Feasibility Study based on a
proposed open pit mine at the Koka deposit, which forms part of the Zara
Project. The project has low cash costs of $338/oz and a 7 year mine life at
more than 100,000 oz average production per year.
Tim Goyder, executive chairman, said Chalice will continue diamond drilling
at the priority Konate Prospect, located 4.5km south of Koka and undertake
target generation within the prospective 6km long Koka$B!>(B Konate corridor.
It will also integrate exploration data over the entire 615 sq km Zara
tenement package to define further exploration targets undertake an in$B!>(Bfill
bulk leach extractable gold (BLEG) regional stream sampling program.
In addition the company plans to complete an airborne magnetic and
radiometric survey over the Zara tenement package, undertake further
exploration on regional tenements and provide general working capital and
meet the issue costs.
Subject to completion of due diligence and execution of an underwriting
agreement on usual market terms, the rights issue will be fully underwritten
by Southern Cross Equities Limited.
Chalice anticipates lodging the Prospectus for the rights issue on about 13
August 2010.
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