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Market:	ASX
Sector:	Gold Mining
EPIC:	CHN
Latest Price:	0.26 (0.00%)
52-week High:	0.62
52-week Low:	0.24
Market Cap:	65.01M

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Chalice Gold Mines

Chalice Gold Mines (ASX: CHN) is an East African-focused company developing the Zara Project in Eritrea.

Chalice Gold announces further results from Koka drilling

Tuesday, January 19, 2010

East African-focused company Chalice Gold Mines (ASX: CHN) has advised that further results from infill drilling at its Koka Gold Deposit in Eritrea continue to confirm the robust nature of the ore body.

Following the announcement, shares in the company rose 3.4%, or 1.5c, to 45.5c during the afternoon trade.

The new results come from diamond drill holes ZARD 129, 130, 131, 132 and 134 which all achieved significant intersections of quartz stockwork mineralisation within the Koka Main Zone.

The better intersections included 8 metres grading 9.47 grams of gold per tonne in ZARD 129; 6 metres grading 26.92 grams of gold per tonne in ZARD 130; 11 metres grading 4.68 grams of gold per tonne in ZARD 131; 18 metres grading 29.30 grams of gold per tonne in ZARD 132, and 11 metres grading 8.29 grams of gold per tonne in ZARD 134.

The results from infill drilling continue to confirm the continuity and high grade nature at the rich Koka Gold Deposit at the Zara Project in Eritrea.

Close to 80% of infill drilling program now completed with further assays pending, with a geotechnical drilling program about to commence.

The company has reported that follow-on drill programs at Koka East and Koka South underway.

The Zara Joint Venture comprises four Exploration Licenses and two Prospecting Licenses covering an area of 615km2 situated in northern Eritrea, approximately 160km northwest of Asmara city.

Chalice holds an 80% interest in the project with the remaining 20% held by Dragon Mining (ASX: DRA). The Koka Gold Deposit within the project contains an estimated resource of 5 million tonnes of ore containing 944,000ozs gold, grading 5.8grams of gold per tonne.

Metallurgical test work indicates +95% recovery with ~60% recovered by gravity.

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