Chalice Gold Announces Further Broad Gold Intercepts at Zara Gold Project,
Eritrea
Read in PDF:
http://chalicegold.com/upload/documents/InvestorRelations/releases/20111215A
SXAnnouncementZaraDrilling-DebreKonate.pdf
111 metres _at_ 1.41g/t gold confirms potential for significant new discovery
at Debre Konate
Symbol: ASX: CHN TSX: CXN
Shares outstanding: 250 million
Fully diluted: 258 million
PERTH, Western Australia, Dec. 15, 2011 /CNW/ - Chalice Gold Mines Limited
(ASX: CHN; TSX: CXN) and its 60% owned subsidiary Zara Mining Share Company
are pleased to advise that further high-grade gold intercepts have been
received from diamond drilling at the recently discovered Debre Konate
prospect, situated immediately south of the soon to be developed Koka Gold
Deposit at its Zara Project in northern Eritrea (
<
http://www.chalicegold.com/upload/images/InvestorRelations/TSX/20111215Fig1
.jpg> see Figure 1
<
http://www.chalicegold.com/upload/images/InvestorRelations/TSX/20111215Fig1
.jpg> ).
Recent diamond drilling
<
http://www.chalicegold.com/upload/images/InvestorRelations/TSX/20111215Fig2
.jpg> (
<
http://www.chalicegold.com/upload/images/InvestorRelations/TSX/20111215Fig2
.jpg> see Figure 2
<
http://www.chalicegold.com/upload/images/InvestorRelations/TSX/20111215Fig2
.jpg> ) has focused on testing high priority targets within a 7.5km long
corridor encompassing the Koka Deposit (Probable Mineral Reserve of
760,000oz _at_ 5.1g/t gold), where Chalice and its partner ENAMCO are planning
to commence development of an open-pit mine in 2012 (ASX announcement -
November 2, 2011).
The previously undrilled Debre Konate prospect, located ~2.5km south of
Koka, was initially targeted as an Induced Polarisation ("IP") resistivity
anomaly supported by minor artisanal workings and a significant gold and
lead soil geochemical anomaly in a microgranite host. ZARD 227
<
http://www.chalicegold.com/upload/images/InvestorRelations/TSX/20111215Fig2
.jpg> (
<
http://www.chalicegold.com/upload/images/InvestorRelations/TSX/20111215Fig2
.jpg> see Figure 2
<
http://www.chalicegold.com/upload/images/InvestorRelations/TSX/20111215Fig2
.jpg> ) was the first hole drilled into this prospect and it intersected an
extensive low-grade mineralised system grading 0.93g/t gold (uncut) over 199
metres (83m to 282m downhole) (ASX announcement - November 7, 2011).
Drill hole ZARD230 was drilled "up-section" from ZARD227 and has confirmed
the previous drill results with numerous zones of narrow, higher grade
mineralisation contained within the low-grade envelope. Overall, ZARD230
intersected the same extensive low-grade gold system, returning 111m _at_
1.41g/t gold (uncut) from 94m. Better intersections (uncut) included:
* 4m _at_ 11.45g/t Au from 94m
* 1m _at_ 12.55g/t Au from 119m
* 1m _at_ 22.42g/t Au from 129m
* 1m _at_ 30.55g/t Au from 163m
A full tabulation of all significant assays is tabled below (Table 1).
This drill hole has confirmed significant new gold mineralisation at Debre
Konate and mineralisation is currently open up-dip, and along strike and
confirms a previously unrecognised zone of mineralisation that appears to
have potential for larger, bulk-tonnage styles of mineralisation, similar to
Centamin Egypt's Sukari deposit, compared with the smaller-tonnage,
high-grade style of deposit at Koka
<
http://www.chalicegold.com/upload/images/InvestorRelations/TSX/20111215Fig3
.jpg> (
<
http://www.chalicegold.com/upload/images/InvestorRelations/TSX/20111215Fig3
.jpg> see Figure 3 - Cross Section at Debre Konate).
Doug Jones
Managing Director
Hole ID
Target
Easting
Northing
Azimuth
Dip
>From
(m)
To
(m)
Length
(m)
Au
g/t
ZARD 230
incl
incl
incl
incl
incl
incl
incl
incl
incl
incl
incl
KO
390586
1821766
70
-60
94
94
101
119
124
127
129
163
194
202
226
255
205
98
112
120
125
131
130
164
195
205
227
256
111
4
11
1
1
4
1
1
1
3
1
1
1.41
11.45
2.24
12.55
3.34
6.72
22.42
30.55
2.53
1.61
2.71
1.31
All results are uncut
Table 1: Significant Intercepts - Zara Gold Project
About Chalice
Chalice Gold Limited is an exploration and development company which owns a
60% beneficial interest in the high grade, open-pittable Koka Gold Deposit
and a substantial, largely unexplored, land package in Eritrea. The Koka
Gold Deposit consists of an "in-pit" JORC and NI 43-101 compliant Indicated
Mineral Resource of 5.0 million tonnes grading 5.3 grams of gold per tonne,
containing 840,000 ounces of gold. This Mineral Resource includes a Probable
Mineral Reserve of 4.6 million tonnes grading 5.1 grams of gold per tonne,
containing 760,000 ounces of gold. The Company is focused on developing the
Koka Gold Deposit into a low cost gold mine which is expected to produce
104,000 ounces of gold per year over a 7 year mine life at an average cash
cost of US$338/oz gold (refer to the 43-101 Technical Report on the Koka
Gold Deposit, Eritrea dated 27 July 2010). Chalice also holds a substantial
strategic ground position of 1,372 km2 consisting of licences along strike
of the Koka Gold Deposit, and proximal to Nevsun's Bisha Mine. These
exploration concessions host numerous, high potential, early and advanced
stage gold and base metal exploration targets. Chalice is undertaking a
systematic exploration effort on these exploration concessions with the aim
of discovering significant new deposits.
Competent Persons and Qualified Person Statement
The information in this report that relates to Exploration Results is based
on information compiled by Dr Doug Jones, a full-time employee and Director
of Chalice Gold Mines Limited, who is a Member of the Australasian Institute
of Mining and Metallurgy and is a Chartered Professional Geologist. Dr Jones
has sufficient experience in the field of activity being reported to qualify
as a Competent Person as defined in the 2004 edition of the Australasian
Code for Reporting of Exploration Results, Minerals Resources and Ore
Reserves, and is a Qualified Person under National Instrument 43-101 -
'Standards of Disclosure for Mineral Projects'. The Qualified Person has
verified the data disclosed in this release, including sampling, analytical
and test data underlying the information contained in this release. Dr Jones
consents to the release of information in the form and context in which it
appears here.
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 was a Qualified
Person under National Instrument 43-101 - 'Standards of Disclosure for
Mineral Projects' at the date the National Instrument 43-101 was filed with
the Toronto Stock Exchange. Mr Tyrrell consents to the inclusion of this
information in the form and context in which it appears.
The statement of Ore Reserves is based on information compiled by Mr David
Lee who is a Member of the Australasian Institute of Mining and Metallurgy
and a full time employee of AMC. Mr Lee has sufficient relevant experience
to be a Competent Person as defined in the JORC Code and was a Qualified
Person under National Instrument 43-101 - 'Standards of Disclosure for
Mineral Projects' at the date the National Instrument 43-101 was filed with
the Toronto Stock Exchange. Mr Lee consents to the inclusion of this
information in the form and context in which it appears.
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 likelihood of exploration success, 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 and gold; 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; imposition of trade embargos or
sanctions; 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://www.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.
Cautionary Note
For readers to fully understand the information in this news release, they
should read the Technical Report for the Koka Gold Deposit dated July 27,
2010 (available at <
http://www.chalicegold.com> www.chalicegold.com) in
its entirety, including all qualifications, assumptions and exclusions that
relate to the information set out in this news release which qualifies the
Technical Information. Readers are advised that mineral resources that are
not mineral reserves do not have demonstrated economic viability. The
Technical Report is intended to be read as a whole, and sections should not
be read or relied upon out of context. The technical information in the
report is subject to the assumptions and qualifications contained in the
Technical Report.
For further information:
For further information, please contact:
Tim Goyder, Executive Chairman
Dr Doug Jones, Managing Director
Chalice Gold Mines Limited
Telephone +61 9322 3960
For media inquiries, please contact:
Nicholas Read
Read Corporate
Telephone: +618 9388 1474
For North American Investors, please contact:
Joanne Jobin
North American Investor Relations Manager
<mailto:jjobin_at_chalicegold.com> jjobin_at_chalicegold.com
Telephone: +1 647 964 0292
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Received on Thu Dec 15 2011 - 16:24:42 EST