capitaleritrea » Chalice Gold

Presentation to 2012 Africa Mining Congress and Indaba Mining

capitaleritrea — Wed, 01 Feb 2012 19:55:20 +0000

Chalice Gold Mines

Chalice Gold Mines Limited has released its latest presentation which will be made to the Africa Mining Congress and Indaba Mining shortly. Please click here to view the presentation.

Chalice Gold Mines would particularly like to draw your attention to the Company’s Mogoraib North Project, outlined in the presentation, which will be the focus of a drilling campaign starting shortly.

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Mining Conference: Mines and Money London

capitaleritrea — Mon, 28 Nov 2011 20:12:32 +0000

Mines and Money London 2011, December 6-7, Business Design Centre, Islington, London.

With London’s established prominence as the financial partner in the global mining industry, Mines and Money London is an invaluable channel for the global mining industry to cultivate long term partnerships with the city’s mining stakeholders and investors.

Mines and Money London brings together some of the most influential decision makers within mining companies, the investment community, governments and professional services.

Recognised as the best international forum for networking in London, Hong Kong, Beijing and Sydney, these events are fixtures in the diaries of industry leaders. Amongst the exhibitors: South Boulder Mines, Sunridge Gold, Chalice Gold and others with projects in Eritrea.

http://www.minesandmoney.com/london/

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Sudan to Take Part in Asmara Geocongress

capitaleritrea — Sun, 11 Sep 2011 09:34:01 +0000

Geocongress Asmara

As part of the Arabian Nubian Shield, Eritrea is now being acknowledged for its substantial mineral potential that ranges from VHMS polymetallic deposits associated with NeoProterozoic rocks of this Shield, to epithermal gold and Potash deposits in the younger Red Sea Rift-related sedimentary and volcanic rocks of Tertiary and Quaternary Periods.

The commencement of commercial production of the first modern mine at Bisha and the presence of different advanced projects of gold at Koka (Chalice Gold Mines, Zara project), base metal and gold deposits at Debarwa, Embaderho and Adi Nefas (SunRidge Gold Corp., Asmara Project) together with that of the Potash deposit at the Denakil Depression (South Boulders, Colluli Potash Project) makes Eritrea an attractive destination for potential metallic and non-metallic minerals exploration and mining.

In an attempt to promote the exploration and mining activities of the country and the region in general, the Ministry of Energy and Mines is organizing the Second Asmara GeoCongress 2011, to be held in October 4-8, 2011 in Asmara. The Ministry hereby invites all interested parties to attend the Congress.

The objective of the GeoCongress is to bring together earth scientists, mining experts, investors, service providers and regulators, to share experiences and to discuss, on current activities of exploration, mining and on various topics of interest. The event will provide a good opportunity for the participants to gather valuable information on recent views on the evolution of the geology of the region, new techniques and approaches in exploration and mining for metallic and nonmetallic minerals, and the social, environmental, financial and legal challenges associated with exploration and mining activities.

The GeoCongress is also expected to promote the mineral resources of the Shield and enhance regional cooperation and coordination. SUNA reports that Sudan’s Ministry of Minerals is going to take part in the Geocongress in Asmara and that the two sides will secure the border mining projects and share data and experience on the Arabian Nubian Shield.

Themes

Geology and evolution of the Arabian Nubian Shield
Geological, geochemical and geophysical techniques of Mineral exploration
Mining Techniques in the region
Social and Environmental Aspects of mining activities
Financial and Legal aspects of exploration and mining activities

Activities (Programs)

Two days of presentations
Tour to exploration and mine sites
Excursion to the pristine waters of the Red Sea Coast including a train ride to Massawa.

The Geocongress Asmara 2011 is organized by the Eritrean Ministry of Energy and Mines.

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Chalice Gold Mines Video: Developing a High Grade Gold Mine in Eritrea

capitaleritrea — Fri, 09 Sep 2011 05:47:17 +0000

Chalice Gold Mines Limited (ASX:CHN; TSX: CXN) provides the opportunity to view a video broadcast with Dr Douglas Jones, Managing Director, of his presentation titled “Developing a High Grade Gold Mine in Eritrea”.

To view , click on the following link:

Chalice Gold Video

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Chalice Gold Mines Quarterly Report

capitaleritrea — Tue, 25 Jan 2011 17:23:03 +0000

[wikichart align="left" ticker="CHN.ax" showannotations="true" livequote="true" startdate="25-07-2010" enddate="25-01-2011" width="250" height="200"]Chalice Gold Mines Quarterly Report Highlights:

-Regional exploration ramps up at the Zara Gold Project, Eritrea with a focus on identifying new prospects to increase the current Indicated Mineral Resource of 840,000oz at 5.3g/t within the Koka deposit.

– New “Koka-like” signatures identified by a deep penetration 3D IP survey over the Koka-Konate corridor-providing a priority drilling opportunity for early 2011.

-Further results from Zara North confirm strong stream sediment anomalism over 10km strike length.

– The Eritrean Government advises its intention to purchase, at fair value, a 30% paid participating interest in the Zara Project- Chalice shares commence trading on the Toronto Stock Exchange (TSX) under the symbol CXN

During the Quarter, Chalice Gold Mines (ASX: CHN) (TSX: CXN) continued to ramp up its near?mine and regional exploration activities at the Zara Gold Project in Eritrea, East Africa, with a focus on identifying new prospects to increase resources in the vicinity of the high?grade Koka Gold Deposit, which hosts an indicated Mineral Resource of 840,000oz at a grade of 5.3g/t gold.

Early results from a key deep penetration Induced Polarisation (IP) survey over the Koka?Konate corridor reveal strong IP resistivity targets below the Koka Deposit and the Koka East prospect. Strong IP chargeability anomalies have also been identified to the west of the Koka Deposit.

The results of the IP survey have provided exceptional targets for drilling in early 2011.

Follow-up geochemical sampling and geological mapping on the Zara North licence has continued to confirm previously reported gold anomalism. Identifying the source of this anomalism will be a key focus for intensive exploration planned over the coming months.

During the Quarter, the Eritrean Government advised its intention to purchase, at fair value, a 30% paid participating interest in the Zara Project through the Eritrean National Mining Corporation (ENAMCO). Discussions in relation to the acquisition are currently ongoing.

Find the full report here: Chalice Gold Mines Quarterly Report

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Chalice Gold Mines Close Before Commencing to Look for Funding for Koka Project in Eritrea

capitaleritrea — Sun, 23 Jan 2011 10:10:32 +0000

Chalice Gold Mines

Minesite, By Alastair Ford - “We’ve done a lot in the last year or so”, says Doug Jones, managing director of Australian-listed Chalice Gold Mines, which is one of the trailblazers in the new mining district of Eritrea. The company is working up the Zara gold project in the centre of the country, a few hundred kilometres north of the famous Bisha mine, which has just been brought into production by Nevsun. And Chalice has been developing Zara at a fair old lick, as Doug is keen to point out.

“In August of 2009 we’d just completed the merger with Sub-Sahara. Then we cleaned it up to get a 100 per cent interest in the project, subject to the government’s option to purchase 30 per cent. Then we got the drilling done, produced a maiden reserve, got all the water drilling and environmental studies done, and then completed a feasibility study in July. We got through a TSX listing and did a couple of capital raisings.”

At times it’s been hard to keep up, such has been the whirlwind of activity produced by the company. But then the Chalice boys are like that. On their frequent visits to London they barely have time to touch the ground and raise a beer glass to their lips before they’re off to their next meeting with existing, or potential investors.

In any case, those same investors must be well satisfied at the moment with progress on Zara. The results of the feasibility study were released in August and showed that at the Koka deposit, the company has a project capable of producing 100,000 ounces per year over a seven year mine life, based on the current resource of 840,000 ounces. The study used a US$900 gold price, and assumed cash costs of US$338 per ounce from a basic open pit. So far so good, and perhaps not surprising that the company’s shares have doubled in the last 12 months or so to the current A$0.70 from a 52-week low of A$032 hit early in 2010. But now’s the time to be moving established gold ounces towards production, especially with costs likely to be so low, and given the complexities and uncertainties in the Australian tax system, it’s perhaps not surprising that local Aussie investors have in recent months favoured African developers over their local home-grown types.

That’s a big turnaround, but it hasn’t done Chalice any harm. Indeed it’s allowed the company to build up enough momentum to get the shares listed on the Toronto exchange too, a development which was ongoing in the final quarter of last year, and which was finally completed in the latter part of November, just in time for the big Mines & Money conference in London, at which Chalice’s had a particularly high profile.

The interest stems not only from the track record of success that’s now building up, but also from the possibilities on the ground at Koka, and at Zara, that still remain. There’s never been much doubt in Doug’s mind, nor indeed that of Chalice’s chairman Tim Goyder, that resources at Koka will go over the million ounce mark in due course. Doug talks of “big exploration upside” without hesitation, and adds that in addition to its existing ground Chalice will pick up further acreage before too long.

It will be helped along the way by a government that is enthusiastic, to say the least, about the potential of Zara and Koka. The government now looks likely to exercise its option to buy into Koka, although at what price remains to be seen. Negotiations are likely to be tough, but Doug is quite clear. “The government want to see this go forward”, he says. “The biggest question is how much they’re going to pay, and when they’re going to pay it”. But both sides have already agreed that if a deal can’t be thrashed out then the matter will be settled by independent arbitration. Whatever happens, with the government on board, the political risk will be much reduced, in what is still seen as a volatile area.

After that it’ll be a question of completing the permitting process, and raising the necessary funding to get Koka into production. Initial costs have been put at around US$122 million, and all options are still on the table. Some nice drilling results from the ongoing programme at Zara would certainly help build up a bit of a tail wind as far as that fundraising is concerned. But first, the negotiators will have to come to an agreement as to the precise terms on which the government will be allowed to participate. It should be an interesting year.

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Chalice Completes Report to Support Application for Toronto Stock Exchange Listing

capitaleritrea — Fri, 08 Oct 2010 06:28:12 +0000

Chalice Gold Mines Limited (ASX: CHN) advises that in support of the Company’s application to list on the Toronto Stock Exchange it has completed a National Instrument 43-101 Technical Report on the Koka Gold Deposit. This report, prepared by AMC Consultants Pty Ltd, is appended to this announcement.

TIM GOYDER

Executive Chairman

Attachment: 43-101 Technical Report on the Koka Gold Deposit

About the Zara Gold Project

The Zara Project 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 a 100% interest in the project subject to Eritrean government participation rights.

The Koka Gold Deposit within the project contains a Probable Reserve of 4.6 million tonnes of ore grading 5.1 grams of gold per tonne and containing 760,000 ozs of gold. This is contained within an Indicated Resource of 5.0 million tonnes grading 5.3 grams of gold per tonne containing 840,000 ozs of gold.

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Chalice Gold Mines Close Before Commencing to Look for Funding for Koka Project in Eritrea

New Gold Discovery at Konate Confirms Zara Exploration Potential

capitaleritrea — Mon, 13 Sep 2010 06:52:39 +0000

Chalice Gold Mines

Chalice Gold Mines Limited (ASX: CHN) today announced that it has discovered a significant new zone of gold mineralisation at the Konate prospect, located 5km south of, and along strike from, the 840,000oz Koka Gold Deposit at its Zara Project in Eritrea.

Konate is the first prospect to be drill tested within a 6km long highly prospective corridor, extending to the south of Koka. Chalice believes this corridor has the potential to host additional high-grade gold deposits, similar to that at Koka, where the Company is proposing to develop a high grade, low cost open pit gold mine.

As announced on July 13, 2010, Chalice completed a Feasibility Study on the Koka Gold Deposit in July confirming the potential for a robust and viable gold development based on open pit probable reserves of 760,000oz grading 5.1g/t gold.

The first results from diamond drilling at Konate reveal significant grades and widths of gold mineralisation, with best intersections to date of 3m @ 12.79g/t gold from 120m (drill hole ZARD 177) and 4m @ 11.65g/t gold from 109m (drill hole ZARD 185) within broader zones of lower grade gold mineralisation.

ZARD 185 intersected fresh quartz stockwork mineralisation in a microgranite host over a down-hole width of 30m (close to true width) from 109m depth. Better grade mineralisation is associated with higher concentrations of sulphides, predominantly pyrite, including the high grade intersection 4m @ 11.65g/t. This is a style of mineralisation similar to that hosting the high grade mineral resources and mineral reserves in the Koka Gold Deposit.

ZARD 177 was drilled 65 metres north of ZARD 185 on an oblique 40 metre section and intersected quartz stockwork mineralisation over a 22m width. Better intersections were again associated with pyrite concentrations and included the high-grade intersection of 3m @ 12.79g/t.

The Company currently has a diamond rig drilling double-shift at Konate and is considering adding an additional rig to expedite evaluation of the 600 metre long zone defined by extensive past artisanal workings.

Commenting on the results, Chalice Managing Director Doug Jones said:

“While it’s still early days at Konate, these first results are highly encouraging as they demonstrate significant gold grades and widths. Drilling to date suggests that the system is open at depth and to the south, so we are continuing an aggressive drilling program to further delineate the geometry and characteristics of this very promising new discovery.

The location of this high grade gold discovery just 5 kilometres south of the planned Koka operation means that it has the potential to positively impact the already robust economics of our core project by providing additional feed to the Koka mill.

It also reinforces the broader prospectivity of our tenement holdings at Zara and in particular the enormous exploration upside within the 6km long Koka-Konate corridor, where we are currently focusing much of our exploration attention – with drilling underway at Konate and a major deep-penetrating IP survey set to commence within weeks.”

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Video: Chalice Gold Presentation at Africa Down Under Conference

capitaleritrea — Wed, 08 Sep 2010 07:29:29 +0000

Eritrea

Chalice Gold Mines Limited (CHN) Managing Director Douglas Jones held a presentation on Chalice Gold’s Zara Project in Eritrea at the 2010 Africa Down Under Conference in Perth, Australia.

The event is addressing an emerging and growing business interest of mining companies in the African continent. Africa is increasingly attracting investors following the flow of global exploration dollars into the continent as a result of Africa’s underexplored mineral richness.

The conference was attended by Mining Executives, Investors, Government Officials, African Mining Ministers, Mining Suppliers and Mining Industry Experts. The previous year, Africa Down Under attracted more than 900 delegates and around 100 exhibitors and a full programme of expert speakers.

Click here to watch the presentation video

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Koka Gold Project – Feasibility Study Full Summary Report

capitaleritrea — Fri, 13 Aug 2010 14:09:17 +0000

Further to Chalice’s ASX Release of 13 July 2010 of the results of the Feasibility Study for its Koka Gold Project in Eritrea, East Africa, the Company is pleased to provide the full Project Summary from the Feasibility Study for reference by investors and shareholders.

The full Koka Gold Project Feasibility Study Summary is appended to this release and is also available on the Company’s website. The key financial outcomes of the Feasibility Study, which was undertaken by Lycopodium Minerals Limited (“Lycopodium”) with inputs from prominent industry consultants AMC Consultants Pty Ltd (“AMC”) and Knight Piésold Pty Ltd (“KP”), are set out in the announcement of 13 July 2010.

The highlights of that announcement were:

Average life of mine total cash operating costs of US$338 per oz of gold
After?tax NPV5% of US$196 million, life of mine EBITDA of US$589 million and an after tax IRR of 35% at current gold price of ~US$1,200/oz
After?tax NPV5% of US$99 million, life of mine EBITDA of US$381 million and an after tax IRR of 22% at base case gold price of US$900/oz
Average annual gold production of approximately 104,000oz per year with gold production totalling 731,000oz
Forecast mine life of seven years at a mill throughput of 600,000 tonnes per annum, rising to 700,000 tonnes per annum from year 5
Open pit Ore Reserves of 4.63Mt grading 5.1g/t for 760,000oz contained gold with a waste to ore ratio of ~10:1
Estimated start up capital cost of US$122M

As advised in the previous announcement, the Company will now proceed to apply to the Eritrean Government for a Mining Licence in respect of the Koka Deposit. In parallel with this application, the Compan will assess its various funding options for development of the Koka Project.

The full Feasibility Study was recently presented to the Eritrean Ministry of Energy & Mines as the first step in the Company’s application for a Mining Licence for the Koka Gold Deposit. Lycopodium Minerals Limited, AMC Consultants Pty Ltd and Knight Piésold Pty Ltd have consented to the release of the Summary of the Feasibility Study.

Tim Goyder

Executive Chairman

See full report here: Summary Report

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Chalice Acquires Full Ownership of Zara Gold Project, Eritrea

capitaleritrea — Tue, 22 Jun 2010 07:30:37 +0000

Zara Project

Dragon Mining Limited announces that Chalice Gold Mines Limited (“Chalice”) has exercised its option to purchase the Company’s 20% interest in the Zara Gold Project, Eritrea. Settlement, which will occur in two days, will result in Dragon Mining receiving $8.0 million in cash and 2 million Chalice shares (current market value of $0.9m) which will be escrowed for 12 months.

In addition, Chalice has the obligation to pay Dragon Mining a further $4.0 million on the delineation of 1 million ounces of gold Reserves at the Zara Gold Project. On 4 June 2010, Chalice announced a maiden gold Reserve at the Zara Gold Project of 760,000 ounces from an Indicated gold Resource of 840,000 ounces.

As at 31 May 2010, Dragon Mining had $21.4 million of cash and gold concentrate receivables compared to $11.8m at 31 March 2010 as reported in the quarterly report. With the receipt of the $8.0 million, the Company will have total cash and receivables of $29.4 million.

The limited obligations of Dragon Mining comprise a working capital facility of 2 million euros ($2.8m) which is repayable in two equal tranches on 30 June 2010 and 31 December 2010. In addition, as a result of on-market purchases by the Company, the outstanding number of convertible notes amount to 9.2 million.

Executive Chairman Peter Cordin stated, “It is pleasing that with the final delivery in August 2009 into the original hedge to finance the Svartliden development, the Company has substantially improved its balance sheet and cash position.

We are well positioned to meet forecasted production of 70,000 ounces of gold for 2010 and continue to generate strong operating margins with the appreciation of the gold price and the weakening of the euro and Swedish krona. The strong cash position will allow the Company to grow and enhance shareholder value.”

The Company is focussed on increasing the Reserves and mine life of its existing gold mines in Sweden and Finland. Feasibility studies for the underground operation at the Svartliden Gold Mine in Sweden and Jokisivu Gold Mine in Finland are nearing completion with commitment to development expected in the third quarter of 2010.

In addition the Company will be able to commit further funding to enhance the value of its exploration properties, particularly at Kuusamo in northern Finland.

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Chalice Plans Share Placement to up Stake in Eritrea Gold Project

capitaleritrea — Mon, 24 May 2010 16:38:58 +0000

East Africa-focused Chalice Gold Mines would raise A$9,1-million through a share placement to major shareholder Franklin Resources and other institutional and sophisticated investors.

The company said on Monday that it would place more than 21,6-million shares, at A$0,42 a share.

Around 11,6-million shares would be taken up by Franklin Resources, while a further ten-million shares would be placed with investors. The placement would be made pursuant to the 15% allowance under the ASX-listing rules.

Of the funds raised, A$7,8-million would be used to purchase the remaining 20% interest in the Zara gold project, in Eritrea, from fellow listed Dragon Mining. The balance of the funds raised would be used for working capital purposes.

The Zara gold project has an estimated resource of one-million ounces of gold. The company was currently conducting a feasibility study, with a targeted first production in 2011.

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