Promising initial assays and further sulphides at Mogoraib North
Sulphides now intersected in three target zones over a two kilometre
strike length: drilling continuing
Symbol: ASX: CHN TSX: CXN
Shares outstanding: 250 million
Fully diluted: 255 million
PERTH, Western Australia, Nov. 21, 2012 /CNW/ – Chalice Gold Mines Limited (ASX: CHN/TSX: CXN) is pleased to report further encouraging results from early-stage
exploration at its Mogoraib North Copper-Zinc Project in Eritrea, East Africa (Chalice – 60%; Eritrean National Mining
Corporation (ENAMCO) – 40%).
Mogoraib North is located 10km north of the world-class Bisha
Polymetallic Mine (1.1Moz gold, 1.04Mlbs copper, 35.8Moz silver and
2.68Mlbs zinc*), along the same prospective VMS trend (Figure 1). Chalice’s drilling is targeting potential Volcanic Hosted Massive
Sulphide (“VHMS”) systems similar to Bisha.
The Company has received assay results from previously reported diamond
drill-hole MOGD-00021 which intersected a 10m interval of semi-massive to massive pyritic sulphides within a broader 41m wide
zone of stringer and disseminated sulphides at the T209 cluster of VTEM anomalies (see ASX Announcement – 1 November 2012).
The laboratory assay results for this intersection are summarised below:
-- 5m grading 0.86% Cu, 1.33% Zn, 0.1g/t Au, 7.48g/t Ag from 145m, including: o 1m at 1.03% Cu, 2.3% Zn -- 2.5m grading 0.49% Cu, 1.18% Zn, 0.28g/t Au, 8.22g/t Ag from 154.5m, including: o 1m at 1.25% Cu, 2.55% Zn
MOGD-00021 was drilled to test a VTEM conductor anomaly and coincident
gravity anomaly, T209, within a linear cluster of conductor and gravity
anomalies extending over a strike length of two kilometres (see Figure 2).
The Company has now completed a further eight wide-spaced diamond holes
testing other VTEM conductors and gravity anomalies along this zone.
Pyritic sulphides ranging from disseminated and stringer to semi-massive
and massive have been intersected in each of these holes together with
visible chalcopyrite and sphalerite. Individual semi-massive to massive
sulphide units from 0.5 to 6.5 metres in width occur within broader
envelopes of disseminated and stringer sulphides, mainly pyrite and
pyrrhotite, associated with intense alteration of the host volcanics.
The widespread occurrence of sulphides and the mineralogy observed in
diamond drill core suggests that the intersection in MOGD-00021 may
occur on the fringes of a large VHMS system. While a great deal of
further drilling and exploration is required, Chalice is very
encouraged by the promising results received to date.
Drilling is planned to continue until mid-December with a further 3,000m
expected to be completed before the Christmas break. Targets to be
tested will include high priority regional VTEM targets as well as
further holes within the T209 cluster.
In the meantime, a detailed gravity survey has now been completed over a
12 sq km zone covering the VTEM anomaly trend to refine the previous
regional gravity survey data (see Figure 3). This has highlighted several gravity highs on the northern end of the
trend as high priority targets.
The Company is currently mobilizing electromagnetic (EM) survey
equipment from Australia to commence an extensive program of fixed-loop
surface EM and down-hole EM surveys covering the entire prospective
corridor. The equipment is expected to be in Eritrea before the end of
the month with surveying to commence shortly thereafter and continuing
through into 2013.
The EM surveys will provide much greater resolution than the airborne
VTEM survey that has guided the drilling to date.
Chalice’s Executive Chairman, Tim Goyder, said:
“The results from MOGD-00021, combined with what we have seen in
follow-up drilling, have given us confidence that we are onto a
significant VHMS system at Mogoraib North that previously lay totally
undiscovered beneath shallow cover.
“The tenor of results seen in the discovery hole is consistent with
mineralization often seen on the fringes of a large system like Bisha.
The extent of sulphides intersected in the drilling to date gives us
great confidence that we are now in a ‘hot spot’ with outstanding
potential to discover economic concentrations of massive sulphide
mineralization within the broader system.
“Exploration will now begin to focus on outlining the extent of
mineralization and vectoring in on higher grade zones. Our planned
surface and down-hole EM surveys will provide the detailed resolution
to target ongoing drilling more effectively, providing a significantly
more accurate EM model to work from than that generated by the airborne
“We are excited by the opportunities unfolding at this project and we
plan to intensify our exploration to follow up on the promising results
achieved to date.”
* On 24(th) June, 2012 Nevsun Resources Limited announced updated Probable Reserves
at its Bisha Mine as tabled below. This is in addition to 2011 gold
production of 379,000 oz.
Probable Reserves Contained Metal Zone Tonnes Copper Zinc Gold Silver Cu Zn Au Ag % % g/t g/t ('000 ('000 ('000 ('000 ('000's) lbs) lbs) Oz) Oz) Oxide 5.79 35 Phase 900 - - 167 1,020 Supergene 4.09 0.67 28 Phase 6,420 578,800 - 138 5,780 Primary 1.09 6.33 0.72 47 Phase 19,190 461,540 2,679,500 441 28,950 Total 1,040,420 2,679,500 746 35,750
Competent Persons and Qualified Person Statement
The information in this news release that relates to exploration results
is based on information compiled by Dr Doug Jones, a full-time employee
and Director of Chalice Gold Mines Limited, who is a Member of the
Australasian Institute of Mining and Metallurgy and is a Chartered
Professional Geologist. Dr Jones has sufficient experience in the field
of activity being reported to qualify as a Competent Person as defined
in the 2004 edition of the Australasian Code for Reporting of
Exploration Results, Minerals Resources and Ore Reserves, and is a
Qualified Person under National Instrument 43-101 – ‘Standards of
Disclosure for Mineral Projects’. The Qualified Person has verified the
data disclosed in this release, including sampling, analytical and test
data underlying the information contained in this release. Dr Jones
consents to the release of information in the form and context in which
it appears here.
Forward Looking Statements
This document may contain forward-looking information within the meaning
of Canadian securities legislation and forward-looking statements
within the meaning of the United States Private Securities Litigation
Reform Act of 1995 (collectively, “forward-looking statements”). These
forward-looking statements are made as of the date of this document and
Chalice Gold Mines Limited (the Company) does not intend, and does not
assume any obligation, to update these forward-looking statements,
except as required by law or regulation.
Forward-looking statements relate to future events or future performance
and reflect Company management’s expectations or beliefs regarding
future events and include, but are not limited to, statements with
respect to the estimation of mineral reserves and mineral resources,
the realization of mineral reserve estimates, the likelihood of
exploration success, the timing and amount of estimated future
production, costs of production, capital expenditures, success of
mining operations, environmental risks, unanticipated reclamation
expenses, title disputes or claims and limitations on insurance
In certain cases, forward-looking statements can be identified by the
use of words such as plans, expects or does not expect, is expected,
budget, scheduled, estimates, forecasts, intends, anticipates or does
not anticipate, or believes, or variations of such words and phrases or
statements that certain actions, events or results may, could, would,
might or will be taken, occur or be achieved or the negative of these
terms or comparable terminology. By their very nature forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements
of the Company to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking
statements. Such factors include, among others, risks related to
actual results of current exploration activities; changes in project
parameters as plans continue to be refined; future prices of mineral
resources; possible variations in ore reserves, grade or recovery
rates; accidents, labour disputes and other risks of the mining
industry, as well as those factors detailed from time to time in the
Company’s interim and annual financial statements, all of which are
filed and available for review on SEDAR at sedar.com. Although the Company has attempted to identify important factors that
could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
Accordingly, readers should not place undue reliance on forward-looking
Sampling Procedures and Quality Assurance
Diamond drill core is logged and photographed prior to splitting with a
core saw. One half of the core is retained on site whilst the other
half is bagged and dispatched to the Africa Horn Preparation facility
(a division of NATA accredited Intertek Genalysis Laboratories) in
Asmara for crushing to 2mm and splitting. Certified reference
materials (CRMs) are submitted with all sample batches at the rate of 1
per 20 25 routine samples. The CRM’s inserted have values ranging from
very low to high grade. The coarse reject is stored and the split
sub sample is pulverized to a nominal 95% passing 75 micron using an
The pulverized pulp is further split into two 100g to 150g sub samples;
a primary pulp sample is sent for analysis and a duplicate pulp sample
is kept as a reference and the remaining fine (-75 micron) reject is
stored. A quartz wash is pulverized between samples and is stored for
random testing of preparation contamination.
The sample pulps are transported by air to NATA accredited
Intertek Genalysis Laboratories in Perth Western Australia for assay.
For drill core and RC samples used for resource analysis the majority
of gold assaying is completed using a lead collection of 50g fire assay
method with an atomic absorption spectroscopy (AAS) finish. Additional
specified multi element assays are carried out by ICP OES on 25g
sub sample prepared using aqua regia digest. Bulk density
determinations using water immersion method are carried out on every
metre of core within expected mineralisation and every 10m within waste
zones. QA/QC monitoring is applied to all drill core assays as per the
protocols described above.
SOURCE Chalice Gold Mines Limited