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.
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.”
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