Date: Tue, 13 Dec 2011 13:02:43 +0100
Chalice Gold to sell Zara gold project in Eritrea
Chalice Gold says it has inked a letter of intent setting out terms for the
sale of its Zara gold project, which holds some 760,000 ounces gold in
reserves.
Author: Kip Keen
Posted:13 Dec 2011
HALIFAX, NS -
Chalice Gold (TSX: CXN, ASX: CHN) put a tentative deal together to sell its
chief asset in Eritrea, saying on Monday it had signed a non-binding letter
of intent with a prospective buyer that governs the sale of its 60-percent
interest in the Zara gold project.
Chalice Gold did not identify the would-be buyer, but said it expected to
release more details within the next two weeks.
Zara is an advanced-stage gold project the main focus of which is the Koka
gold deposit comprising 4.6 million tonnes _at_ 5.1 g/t gold in probable
reserves. Last year Chalice Gold produced a feasibility study that outlined
a gold mine around the Koka deposit, suggesting an operator could mine about
100,000 ounces gold a year for seven years.
In attracting interest, it could not have hurt that last month Chalice Gold
netted a crucial mining agreement with the Eritrean government, which owns
40 percent of Zara. The agreement cleared the way for it to get a mining
license and then move Zara to production.
Earlier this summer Chalice Gold also signed off on ownership terms with
ENAMCO, Eritrea's state miner, on its 30-percent participating interest in
Zara. ENAMCO, which automatically gets a 10 percent free-carried interest in
projects such as Zara, is to pay Chalice Gold $32 million for the
participating stake.
As of presstime a Chalice Gold spokesperson had not responded to a request
for comment.
Metatags: Chalice Gold, gold, Eritrea, acquisition, ENAMCO, exploration,
probable reserves, Koka deposit, Zara gold project.
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