From: Biniam Tekle (biniamt@dehai.org)
Date: Wed Mar 03 2010 - 08:58:34 EST
http://www.miningweekly.com/article/chalice-gets-option-to-buy-rest-of-eritrea-project-2010-03-03
By: Esmarie Swanepoel
3rd March 2010
Updated 4 hours ago
PERTH (miningweekly.com) – ASX-listed Chalice Gold Mines has acquired an
option to buy the remaining 20% stake in the Zara gold project, in Eritrea,
from fellow Australian explorer Dragon Mining.
Chalice can exercise the option at any time until the end of June, by paying
Dragon A$8-million and issuing it two-million Chalice shares.
Chalice has agreed to pay Dragon a further A$4-million on delineation of a
one-million ounce economically mineable gold ore reserve at the Zara project
within the currently held joint-venture (JV) licences.
“The opportunity to acquire the balance of the Zara project is extremely
attractive to Chalice,” said executive chairperson *Tim Goyder*.
“We now have the opportunity, for the first time, to consolidate ownership
within the one entity of this high-grade project, which already has
open-pittable resources of 944 000 oz at a grade of 5,8 g/t, a feasibility
study due for completion midyear and substantial exploration potential.”
Goyder said that the option came at a time when the company was moving
full-steam ahead with the feasibility study on the Koka deposit and the
start of drilling at the nearby and parallel Koka East target, also in
Eritrea. Early indications are that Koka East is similar in outcrop to the
current resources.
Upon exercising the option, Chalice will own 100% of the Zara exploration
licences with the Eritrean government being entitled to a 10% free-carried
interest on the grant of a mining lease.
In addition, the government has the right to purchase a further interest, up
to 30%, based on an independently determined value.
Edited by: Mariaan Webb
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