Chalice confirms Koka South mineralisation

THE DRILL SERGEANT: ASX and TSX-listed Chalice Gold Mines and Zara Mining Share Company (Chalice 60 per cent, ENAMCO 40 per cent) have received the latest drilling results from the emerging Koka South discovery located on the Zara gold project in Eritrea.

Chalice said the results confirm high-grade mineralisation extending below and south of drilling that it has previously reported.
 
The company has received results for the last two holes from its 2011 drilling campaign.

Both of these holes have returned high-grade intersections, including:

–    1 metre at 138.65 grams per tonne gold from 185 metres;

–    1m at 56.38g/t gold from 195m;

–    1m at 36.97g/t gold from 199m; and

–    1m at 16.82g/t gold from 322m.

“The latest results further confirm that high-grade mineralisation at Koka South extends to depth in the south and remains open Chalice Gold said in its ASX announcement.

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 (Probable Mineral Reserve of 760,000 ounces at 5.1g/t gold).

“Mineralisation at Koka South has so far been delineated over a strike length of 250 metres and remains open to the south and at depth.”

Chalice said it has drilling scheduled to recommence later this month that will be targeting extensions to the Koka South deposit at depth and further to the south.