[dehai-news] Chalicegold.com: Chalice Gold announces change to its Board of Directors

From: Berhane Habtemariam <Berhane.Habtemariam_at_gmx.de_at_dehai.org>
Date: Tue, 22 Nov 2011 13:58:42 +0100

Chalice Gold announces change to its Board of Directors

Symbol: ASX: CHN TSX: CXN
Shares outstanding: 250 million
Fully diluted: 258 million

PERTH, Western Australia, Nov. 22, 2011 /PRNewswire/ - Chalice Gold Mines
(ASX: CHN; TSX: CXN) advises its Directors have been considering the
composition of its Board as the Company moves to development of its Zara Gold Project in Eritrea and following execution of the Mining Agreement with the Government of Eritrea.

These considerations have taken account of the need for an appropriate balance between independent and non-independent directors and general governance practices. As the Company goes forward the Directors consider there is a need to address this balance.

Amongst the resolutions proposed at the Company's AGM (to be held Tuesday 22 November 2011) were resolutions for the re-election of Michael Griffiths
(previously an executive director) and Juan Jeffery, the Chief Operating
Officer of the Company. To maintain an appropriate balance of independent and non-independent directors, Resolutions 3 and 4 respectively for the re-election of Messrs Griffiths and Jeffery will be withdrawn with both directors stepping down. The Company will then seek to further address its Board composition and the need to attract independent directors.

It should be noted that Mr Jeffery will remain the Chief Operating Officer of the Company principally responsible for the development of the Zara Project and Mr Griffiths will consult to the Company from time to time in relation to its Eritrean Gold Projects.

Mr. Griffiths was previously the Managing Director of Sub Sahara Resources, which merged with Chalice in 2008 and has been instrumental in the development of the Eritrean project. His contribution to the Company and the project has been considerable and Chalice recognises and thanks him for this.

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.

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.  

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