[dehai-news] (Chalice G.) Chalice Gold Mines - March 2013 Quarterly Report

From: Semere Asmelash <semereasmelash_at_ymail.com_at_dehai.org>
Date: Tue, 16 Apr 2013 07:13:50 -0700 (PDT)

http://chalicegold.com/upload/documents/InvestorRelations/releases/20130415ASXAnnouncement-MarchQuarterly-FINAL.pdf
http://www.newswire.ca/en/story/1146867/chalice-gold-mines-march-2013-quarterly-report


ASX Announcement 
March 2013 Quarterly Report

vvDrilling resumes at Mogoraib North VMS prospect; Business Development activities gather momentum 
Highlights:

ï‚· Drilling re-commences at Mogoraib River prospect in Eritrea, East Africa, within a +6km strike

length of prospective VMS trend where there is potential for a significant VMS system.

 With cash reserves of A$51.3M, Chalice is actively targeting high quality gold and copper 

resource projects worldwide, to lay the foundations for its next growth chapter.

Overview:

The March 2013 Quarter has seen the resumption of exploration drilling at the Company’s Mogoraib North 

Project in Eritrea, East Africa (Chalice – 60%; Eritrean National Mining Corporation (ENAMCO) – 40%) to define  the scale and potential of the Volcanogenic Massive Sulphide (“VMS”) mineralisation intersected late last year.

In addition, there has been a significant focus on business development activities targeting advanced  exploration or development-stage opportunities which, through access to Chalice’s funding and technical capability, have the potential to create significant shareholder value. 

The Board is considering most jurisdictions with a preference for gold and copper assets, although other 

commodities are being considered on a case-by-case basis.
1. Mogoraib North Project Drilling re-commenced during the Quarter at the Mogoraib River Prospect, located within the Company’s Mogoraib North Project, where drilling late last year intersected several zones of massive pyritic sulphides with  highly anomalous copper and zinc values.  The Mogoraib River Volcanogenic Massive Sulphide (“VMS”) prospect is located 15km north of the Bisha  polymetallic VMS deposit, currently being mined by Nevsun Resources (TSX.NSU) and ENAMCO (see Figure 1).  The prospect was discovered in the course of systematic drilling of numerous bedrock conductor targets generated by a 3,825 line kilometre Versatile Time-domain EM (“VTEM”) survey flown by Chalice in 2011. Since the start of the new drilling program in early March, the Company has completed a further six  diamond core holes for 1,701 metres, focused on the 6km strike length of the Mogoraib River  trend. 

The drilling has been guided by data from the program of Fixed-loop and Down-Hole EM (DHEM)  surveys which commenced in late 2012 designed to better define the sulphide conductors  identified by the VTEM survey.

All holes drilled so far within the Mogoraib River trend have intersected sulphides at the  interpreted EM conductor depths. As with the previously reported intersections (see ASX  Announcement – 21 November 2012), the sulphides intersected in the latest round of drilling are  hosted by a sequence of metamorphosed and recrystallised mafic, rhyolitic and andesitic volcanics  and range from disseminated and stringer to semi-massive and massive pyrite and pyrrhotite, together with minor chalcopyrite and sphalerite. 

Individual semi-massive to massive sulphide units from 0.5 to 3.5m in width occur within broader  envelopes of disseminated and stringer sulphides associated with intense alteration of the host  volcanics. 

Assays from this drilling are still pending, with results expected in late April. The program of Fixed-loop and Down-Hole EM surveys continued throughout the period, covering  most of the Mogoraib River trend as well as all accessible holes within this trend. The surveys were  then extended to regional targets, including the Central Granite zone where 2012 drilling identified  semi-massive sulphides within roof-pendants of volcanics within the intrusive.  The coverage achieved by the FLTEM and DHTEM surveys is shown in Figures 2 & 3. The EM surveys  have been supplemented by detailed geological mapping and petrographic studies which will assist  in the ongoing interpretation of the geophysical and drilling results.

2. Corporate

Chalice’s cash reserves were A$51.3 million as at 31 March 2013. Full details are available in the 
attached Appendix 5B. 
BILL BENT
Managing Director
16 April 2013
For further information, please contact:
Tim Goyder, Executive Chairman
Bill Bent, Managing Director
Chalice Gold Mines Limited 
Telephone +61 9322 3960
For media inquiries, please contact:
Nicholas Read 
Read Corporate
Telephone: +618 9388 1474
Received on Tue Apr 16 2013 - 13:08:15 EDT