By Chalice Gold,
Chalice Gold Mines (ASX: CHN; TSX: CXN) and Zara Mining Share Company (Chalice 60%, ENAMCO 40%) are pleased to announce that new drilling results have confirmed extensions to the high-grade mineralisation at the emerging Koka South discovery, located immediately south of its flagship Koka Gold Deposit, part of the Zara Gold Project in northern Eritrea.
Results have now been received for a further two holes that were drilled to the south of previous drilling with both holes returning high-grade intersections, including:
- 39.25 g/t gold over 3 metres (including 115.33 g/t over 1 metre)
- 21.38 g/t over 5 metres
- 9.73 g/t over 7 metres (including 49.64 g/t over 1 metre)
- 6.06 g/t over 5 metres
The project is a joint venture under Zara Mining SC, the operating company.
Under the agreement, the Eritrean National Mining Corp will pay Chalice US$32 million for a 30% interest. ENAMCO will also pay Chalice approximately $2 million towards exploration costs on the Zara licences outside the Koka licence. Following completion of the agreement, the Zara Project’s ownership structure will be 60% Chalice, 30% ENAMCO and 10% free carried interest.
Chalice and ENAMCO will pay development costs for Koka and exploration costs for the Zara licences on a two-thirds/one-third basis.