PERTH (miningweekly.com) – ASX-listed gold-miner Chalice Gold expects the green light for the development of its Koka gold project, in Eritrea, as early as the beginning of next year, MD Doug Jones said on Tuesday.

The company reported that an independent feasibility study had delivered positive results, indicating that the Koka project could support a 104 000-oz/y mine with a life of seven years.

Jones said that Chalice would apply for a mining lease for the Koka deposit, and would also assess the various options of financing the project.

The preproduction capital costs were estimated at $122-million.

“Chalice is currently working on delivering the remaining key recommendations from the feasibility study to allow mine permitting process and negotiation of a mining agreement with the government of Eritrea to start,” Jones said.

Openpit ore reserves were estimated at 4,63-million tons, grading 5,1 g/t gold. The project is forecasted have a mill throughput of 600 000 t/y, rising to 700 000 t/y from year five.

“The completion of the Koka feasibility study is a major accomplishment for the company,” said Jones.

Chalice also reported that drilling has started at the Konate prospect, south of Koka, where extensive artisanal workings have been developed on Koka-style quartz mineralisation.

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