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From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Mon Sep 06 2010 - 09:01:53 EDT
Chalice withdraws from Eritrea JV with Newmont
By: Esmarie Swanepoel <http://www.miningweekly.com/author.php?u_id=159>
6th September 2010
PERTH (miningweekly.com) - Australian junior Chalice Gold has withdrawn from
a regional exploration joint venture (JV) with US gold-miner Newmont Mining
in Eritrea, opting to explore on its own.
Chalice said in a statement on Monday that the proposed JV, which was
established to explore and evaluate regional gold opportunities, had
remained subject to formal documentation, which had not been completed.
The company has A$16-million cash on hand following a fully underwritten
rights issue, and has, therefore, decided to explore the prospective
tenement on its own, chairperson Tim Goyder explained.
Chalice announced the partnership with Newmont in July, and said at the time
that it would benefit from the US major's financial strength.
The area which was subject to the JV covered about 24 000 km2, and is
currently subject to applications for grant from the Eritrean government.
Under the JV, Newmont would have spent an initial $1-million on a
reconnaissance exploration programme, and in return would have retained a
75% interest.
Chalice is already developing Koka Gold deposit, part of the Zara project in
Eritrea.
Last week, MD Doug Jones indicated that Chalice could start construction at
the openpit mine by the end of the year, pending the completion of a
permitting process.
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