Chalice fills up on drill results

THE DRILL SERGEANT: Chalice Gold Mines has received high-grade gold intercepts from diamond drilling carried out at the company’s recently discovered Debre Konate prospect.

The Debre Konate prospect is situated immediately south of the soon to be developed Koka gold deposit at its Zara project in northern Eritrea.

 

Location of Zara Project and other Chalice Gold Exploration Licences. Source: Company announcement

 

Recent diamond drilling has focused on testing high priority targets within a 7.5 kilometres long corridor encompassing the Koka deposit where Chalice and its partner ENAMCO are planning to commence development of an open-pit mine in 2012.

The previously undrilled Debre Konate prospect, located around2.5km south of Koka, was initially targeted as an Induced Polarisation (“IP”) resistivity anomaly supported by minor artisanal workings and a significant gold and lead soil geochemical anomaly in a microgranite host.

The first hole Chalice drilled into the prospect intersected, what the company described to be as, “an extensive low-grade mineralised system.”
 
A further hole was drilled “up-section” from the first, which Chalice said has confirmed the previous drill results with numerous zones of narrow, higher grade mineralisation contained within the low-grade envelope.

The company said the second hole intersected the same extensive low-grade gold system, returning 111 metres at 1.41 grams per tonne gold (uncut) from 94 metres.

Better intersections (uncut) included:

–    4m at 11.45g/t gold from 94m;

–    1m at 12.55g/t gold from 119m;

–    1m at 22.42g/t gold from 129m; and

–    1m at 30.55g/t gold from 163m.

“The new discovery at Debre Konate and the potential bulk tonnage targets highlight the significant  prospectivity of the greater Zara project area,” Chalice Gold Mines managing director Dr Doug Jones said in the company’s announcement to the Australian Securities Exchange.

“The discovery of additional ounces near Koka will likely have a significant impact on the already robust economics of the project.”