From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Tue Dec 22 2009 - 13:52:56 EST
Chalice Gold confirms high grade gold assays for Koka gold deposit in
Tuesday , 22 Dec 2009 - Mineweb
* First assays from latest infill drilling confirm widths, grades and
continuity of the rich Koka Gold Deposit at the Zara Project in Eritrea.
* Intersections include 31 metres at 6.48 grams of gold per tonne
* Narrow high grade zones intersected in the hangingwall grading up to
100.5 grams of gold per tonne
* Close to 50% of infill drilling program now completed with assays
Chalice Gold Mines Limited (ASX: CHN) is pleased to advise that the first
results from the latest round of infill drilling at its Koka Gold Deposit in
Eritrea have highlighted the continuity and high grade nature of the ore
The results from diamond drill hole ZARD 128 intersected the Koka Main Zone
between 44 and 75 metres down-hole, with 31 metres of quartz stockwork
mineralisation grading 6.48 grams of gold per tonne. This included intervals
of up to 2 metres grading 38.2 grams of gold per tonne.
Additional narrow intervals of high grade mineralisation were also
intersected in the hanging wall, with up to 1 metre grading 100.5 grading
grams of gold per tonne encountered.
These assays are the first from a planned thirty one (31) diamond drill hole
infill programme, designed to bring further confidence to the high grade
mineralisation of the Koka Main Zone and to be used as part of the final
resource estimation for the Koka Bankable Feasibility Study.
Koka, which is the flagship deposit at Chalice's 80 per cent-owned Zara
Project, has JORC resources of 944,000 ounces.
A total of 13 diamond drill holes have now been completed and further assay
results will be released to the market as they become available.
Chalice Managing Director Doug Jones said: "The results from this first hole
have further demonstrated the overall continuity of the Koka ore body and we
expect additional good results over the coming weeks as the programme
advances and we start to receive a steady flow of assays".
The current resource estimate of 944,000oz @ 5.8g/t is based on a 40 metre x
20 metre drill pattern and the current programme will infill most of the
Koka Main Zone to 20 metres x 20 metres. The deposit extends over 570 metres
along strike and the resource remains open both along strike to the south
and at depth.
Following completion of this infill drilling program the drill rigs will
focus on exploration of nearby targets, particularly the Koka South and Koka
Note: The metres quoted are down hole metres and gold grades are uncut with
up to 2 metres of internal dilution (<0.25g/t gold). All samples are
prepared at the Africa Horn Laboratory in Asmara, Eritrea and then analysed
by Genalysis Laboratories in Perth, Western Australia.
About the Zara Gold Project
The Zara Joint Venture comprises four Exploration Licenses and two
Prospecting Licenses covering an area of 615km2 situated in northern
Eritrea, approximately 160km northwest of Asmara city. Chalice holds an 80%
interest in the project with the remaining 20% held by Dragon Mining (ASX:
DRA). The Koka Gold Deposit within the project contains an estimated
resource of 5 million tonnes of ore containing 944,000ozs gold , grading
5.8grams of gold per tonne. Metallurgical test work indicates +95% recovery
with ~60% recovered by gravity.
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