Promising initial assays and further sulphides at Mogoraib North
22/11/2012
Sulphides now intersected in three target zones over a two kilometre strike
length: drilling continuing
Chalice Gold Mines Limited (ASX: CHN/TSX: CXN) is pleased to report further
encouraging results from early-stage exploration at its Mogoraib North
Copper-Zinc Project in Eritrea, East Africa (Chalice
- 60%; Eritrean National Mining Corporation (ENAMCO) - 40%).
Mogoraib North is located 10km north of the world-class Bisha Polymetallic
Mine (1.1Moz gold,
1.04Mlbs copper, 35.8Moz silver and 2.68Mlbs zinc*), along the same
prospective VMS trend (Figure
1). Chalice's drilling is targeting potential Volcanic Hosted Massive
Sulphide ("VHMS") systems similar
to Bisha.
The Company has received assay results from previously reported diamond
drill-hole MOGD-00021 which intersected a 10m interval of semi-massive to
massive pyritic sulphides within a broader 41m wide zone of stringer and
disseminated sulphides at the T209 cluster of VTEM anomalies (see ASX
Announcement - 1 November 2012).
The laboratory assay results for this intersection are summarised below:
. 5m grading 0.86% Cu, 1.33% Zn, 0.1g/t Au, 7.48g/t Ag from 145m, including:
o 1m at 1.03% Cu, 2.3% Zn
. 2.5m grading 0.49% Cu, 1.18% Zn, 0.28g/t Au, 8.22g/t Ag from 154.5m,
including:
o 1m at 1.25% Cu, 2.55% Zn
MOGD-00021 was drilled to test a VTEM conductor anomaly and coincident
gravity anomaly, T209, within a linear cluster of conductor and gravity
anomalies extending over a strike length of two kilometres (see Figure 2).
The Company has now completed a further eight wide-spaced diamond holes
testing other VTEM
conductors and gravity anomalies along this zone.
Pyritic sulphides ranging from disseminated and stringer to semi-massive and
massive have been intersected in each of these holes together with visible
chalcopyrite and sphalerite. Individual semi- massive to massive sulphide
units from 0.5 to 6.5 metres in width occur within broader envelopes of
disseminated and stringer sulphides, mainly pyrite and pyrrhotite,
associated with intense alteration of the host volcanics.
The widespread occurrence of sulphides and the mineralogy observed in
diamond drill core suggests that the intersection in MOGD-00021 may occur on
the fringes of a large VHMS system. While a great deal of further drilling
and exploration is required, Chalice is very encouraged by the promising
results received to date.
Chalice Gold Mines Limited, Level 2, 1292 Hay Street, West Perth, Western
Australia <
http://www.chalicegold.com/> T: +618 9322 3960 F: +618 9322 5800
E: info_at_chalicegold.com www.chalicegold.com
Drilling is planned to continue until mid-December with a further 3,000m
expected to be completed before the Christmas break. Targets to be tested
will include high priority regional VTEM targets as well as further holes
within the T209 cluster.
In the meantime, a detailed gravity survey has now been completed over a 12
sq km zone covering the VTEM anomaly trend to refine the previous regional
gravity survey data (see Figure 3). This has highlighted several gravity
highs on the northern end of the trend as high priority targets.
The Company is currently mobilizing electromagnetic (EM) survey equipment
from Australia to commence an extensive program of fixed-loop surface EM and
down-hole EM surveys covering the entire prospective corridor. The equipment
is expected to be in Eritrea before the end of the month with surveying to
commence shortly thereafter and continuing through into 2013.
The EM surveys will provide much greater resolution than the airborne VTEM
survey that has guided the drilling to date.
Chalice's Executive Chairman, Tim Goyder, said:
"The results from MOGD-00021, combined with what we have seen in follow-up
drilling, have given us confidence that we are onto a significant VHMS
system at Mogoraib North that previously lay totally undiscovered beneath
shallow cover.
"The tenor of results seen in the discovery hole is consistent with
mineralization often seen on the fringes of a large system like Bisha. The
extent of sulphides intersected in the drilling to date gives us great
confidence that we are now in a 'hot spot' with outstanding potential to
discover economic concentrations of massive sulphide mineralization within
the broader system.
"Exploration will now begin to focus on outlining the extent of
mineralization and vectoring in on higher grade zones. Our planned surface
and down-hole EM surveys will provide the detailed resolution to target
ongoing drilling more effectively, providing a significantly more accurate
EM model to work from than that generated by the airborne VTEM survey.
"We are excited by the opportunities unfolding at this project and we plan
to intensify our exploration to follow up on the promising results achieved
to date."
For further information, please contact:
Tim Goyder, Executive Chairman
Doug Jones, Managing Director Chalice Gold Mines Limited Telephone +61 9322
3960
Received on Thu Nov 22 2012 - 13:22:16 EST
