Chalice Hits Gold up to 138g/t tonne in Eritrea
The Koka Gold Deposit is part of the Zara Project in Eritrea, which Chalice agreed to sell the remaining 60% of Zara Gold Project in December to China SFECO Group for US$80 million in cash plus a payment of US$20 million at a later date.
From the last two holes of the 2011 drill program, it appears that mineralisation extends at depth to the south and is still open.
Results returning high-grade intersections, including: 1 metres at 138.65g/t gold from 185 metres, 1 metres at 56.38g/t gold from 195 metres, 1 metres at 36.97g/t gold from 199 metres and 1 metre at 16.82g/t gold from 322 metres.
The widths and grades of mineralisation encountered have the potential to provide a significant underground addition to the Koka open pit resource.
Koka South lies immediately to the south of the Koka Main deposit with a reserve of 760,000 ounces at 5.1g/t gold.