Koka Gold Deposit

Chalice Gold Mines Limited (ASX:CHN) announced that it has upgraded and enhanced the regional exploration potential at its 80 percent owned Zara Gold Project in Eritrea, after completing the initial stage of a regional exploration program.

The program includes tenements adjoining the Zara Project recently granted to the company (100 percent).

Intepretation to date has resulted in the definition of over 60 priority anomalies indicative of gold or base metal targets on the 615 km2 tenement area outside of the current resource base at the Koka Deposit (Indicated and Inferred Resources of 5.04 million tones at 5.8 g/t Au for 944000oz)

This provides a very strong pipeline of regional exploration opportunities with the potential to yield new discoveries within 25 km radius of a potential future mining operation at Zara, where Chalice is currently completing a Scoping Study.

Landsat Interpretation Identifies Numerous Anomalies. 

After its merger with Sub Sahara Resources and the acquisition of the Zara asset, Chalice hired Perth- based remote sensing consultants Eearthscan Pty Ltd to undertake an interpretation of satellite imagery covering the Proterozoic (earlier life of earth) sedimentary and volcanic formations in north-western Eritrea, the prospective stratigraphy which hosts the Koka and Bisha Deposit.

The study area covered over 35000 km2, centered on the Company’s 615 km2 Zara Project, which is located 165 km north of the capital of Asmara. The satellite data was computer enhanced to highlight geological outcrop, regolith landform, structural features and mineral alteration zones within the study area, which lies along major north-west trending structural corridors.

Spectral signatures of known gold and base metal mineral occurrences were used to identify similar signatures elsewhere within the targeted terranes. The target zones were then tanked using various parameters.

Within the Zara Project area the interpretation identified over 60 anomalies with spectral signatures indicative of alteration or iron enrichment commonly associated with known gold and/or base metal mineralization in the region, including the Company’s Koka Gold Deposit.

According to Chalice iron-rich anomalies were also traced within the newly granted Zara South permit where ground follow-up has identified gossans (massive iron-oxide rich rocks derived from the weathering of massive sulphides).

The gossans are associated with altered and pyritised rhyolites and cherty exhalites in a rock assemblage typical of Volcanic-hosted Massive Sulphide (VHMS) mineralization. The gossans lie within interpreted northerly extensions of the volcanic stratigraphy hosting the Bisha polymetallic VHMS deposit approximately 100 km to the south.

Chalice refers to Canadian-based Nevsun Resources Limited who recently secured financing for a US$250 million development of Bisha, which will be a low cost gold producer for its first two years of operations (430000 ounces of gold per year) and low cost, high grade copper concentrate producer (75700 tonnes of contained copper metal per year) for a further three years before commencing long-term zinc concentrate production.

Chalice Gold states that it is looking forward to progressing the evaluation, ranking and exploration of these exciting regional targets. Immediate exploration plans include the acquisition and analysis of high resolution Aster satellite imagery, ground-based geophysics mapping and regional drainage geochemical sampling. Further, a ground-base gravity survey will be conducted over the gossanous zone on Zara South. Gravity surveys have been successfully used to identify massive sulphide bodies elsewhere in Eritrea.

The regional exploration strategy will be advanced in parallel with forthcoming programs of in-fill and resource extension drilling at the Koka Deposit, together with completion of the Feasibility and Feasibility Studies.

Chalice Gold Mines

Related posts:

1. New Gold Discovery at Konate Confirms Zara Exploration Potential
2. Chalice Declares Maiden Gold Reserve for Eritrea’s Koka Deposit
3. Chalice Acquires Full Ownership of Zara Gold Project, Eritrea
4. Eritrea: Strong Results Move Chalice Closer to Production at Zara Project
5. Chalice Gold Raised $4.401.000 for Project in Eritrea
6. Zara Project Eritrea Offers Plenty of Good-Looking Exploration Targets
7. Chalice Gold adds $450000 to Sub-Sahara Gold Project Eritrea
8. Sunridge Gold Identifies Potential New VMS District At The Besakoa Project, Madagascar
9. Chalice Gold Mines Quarterly Report