London Africa Ltd.
Chalice Gold Mines Limited (ASX:CHN) has agreed to invest in the United Kingdom based London Africa Limited (“London Africa”) which holds a number of prospecting licences in Eritrea.
London Africa Limited is a private company registered in England and Wales, originally set up in 2006 to acquire precious and base metal projects in Africa.
Chalice will subscribe for 1.6M shares in London Africa at 12.5p per share for GBP200,000 (A$358,000) which will give Chalice an 11.8% interest in the Company. The funds will be applied to a work program currently being undertaken and managed by London Africa.
London Africa Limited signed in June 2009 a prospecting licence to cover 1562 km² around Akordat – Orota in central Eritrea.
The company says it is the first business in 4 years to sign a new Prospecting Licence in Eritrea. The agreement was signed back in June with the new Eritrean Minister of Mines, Mr Ahmed Haj Ali.
The company’s Web site states that numerous gold-bearing quartz veins systems as well as as alterations zones characteristic of volcanogenic massive sulphide (VMS) mineralisation have been identified after just two field visits to the southern part of the licence area.
Additional Landsat and Aster image anomalies remain to be visited (field checked) and the company is confident that it will have a series of quality gold and VMS targets to evaluate going forward.
London Africa is aiming to explore and find similar volcanic massive sulphide deposits like those of Nevsun Resources’ Bisha deposit. The four prospects of London Africa are Akordat VMS Prospect, Melih VMS Prospect, Enjehay Kereb Gold Prospect, Adinjera Gold Prospect.
