From: Biniam Haile \(SWE\) (eritrea.lave@comhem.se)
Date: Thu Oct 01 2009 - 02:13:12 EDT
ASX ANNOUNCEMENT
1 October 2009
Strong results move Chalice closer to production at Zara Project
Full text
http://chalicegold.com/upload/documents/releases/20091001ASXAnnouncement
KokaUpdate.pdf
Highlights
. Significant progress made in the scoping study at the Koka Gold
Deposit within the Zara Project in Eritrea.
. Initial metallurgical test work confirms previous indications that
overall gold recoveries will exceed 95%.
. Over 60% of gold recoverable from gravity circuit. This suggests Koka
can be treated using a proven, conventional process
. Water drilling indicates strong flows of good quality process water.
. Final feasibility study on track for mid
Scoping Study Update
Chalice is pleased to report that it has made more substantial progress
in its plan to develop the Zara Project in Eritrea following its merger
with Sub Sahara. Among the recent key achievements have been highly
favourable results from both metallurgical testwork and water drilling.
Metallurgical Testwork Metallurgical testwork being undertaken at the
AMMTEC Perth laboratory on representative composite samples from seven
specificall holes representative of the Koka deposit is confirming the
favourable metallurgical characteristics of the project.
Metallurgical recovery results on the master composite prepared from 104
intervals selected as representative of the orebody is excellent with
around 60% of gold recovered by gravity and overall recoveries of 95 to
97% for grind sizes of 80% passing 150 to 75 micron respectively.
Reagent consumptions are low at less than 0.5 kg/t for both lime and
cyanide.
Further variability testwork and optimisation work is in progress to
complete all technical data required for the feasibility study.
Physical properties testing completed on 10 composites of drill core
representative of the mineralisation of the Koka deposit indicate the
ore to be of medium competency as determined by the SMC test procedure,
moderately competent as determined by conventional Bond Work Index
(15-18kWhrs/t) and with a normal abrasion index of 0.3.
This simple metallurgy will enable the implementation of a well proven
processing route employing crushing and grinding by a conventional ball
mill followed by gravity and CIL recovery.
Water Drilling
Test drilling for water has confirmed the presence of significant water
contained gravels of the nearby Zara River some 7km from Koka.
The Zara River has a catchment of some 970sqkm and is the main drainage
system for the region. Production bores are now being established ready
for detailed pump testing to establish sustainable yields for bores and
thus the number of production bores required. Early indications are that
required water volumes should be met from 4-5 bores. Importantly, the
water quality is good with low TDS values.
Overall Study Progress
The Scoping Study involving consultants Lycopodium Minerals, AMC and
Knight Piesold remains on schedule for completion in late October and
will be presented to the Eritrean Government and released to the
Australian Stock Exchange in early November as the first phase of our
ongoing commitment to progressing the project to final feasibility stage
by mid-2010.
Dr Doug Jones
Managing Director & CEO
1 October 2009
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