PERTH (miningweekly.com) – ASX-listed gold explorer Chalice Gold Mines has declared a maiden ore reserve of 760 000 oz for its Koka gold deposit, in Eritrea.

The Koka gold deposit forms part of the Zara gold project, in which Chalice holds an 80% stake.

The Koka deposit was now estimated to host around five-million tons of ore, grading at 5,3 g/t gold, for 840 000 contained ounces. The project further hosted a probable ore reserve of 4,6-million tons, at 5,1 g/t gold for the 760 000 contained ounces.

Chalice said in a statement that the new resource and reserve statement for the Koka deposit was a critical component of the feasibility study currently being conducted. The feasibility study was expected to be completed by next month.

While the current feasibility studies were still under way, Chalice was aiming to start gold production at the Koka deposit during 2011.

Last week, Chalice said that it would raise A$9,1-million to buy the remaining 20% stake in the Zara project, from Dragon Mining.