Chalice could start building Eritrea gold mine by year-end

By: Esmarie Swanepoel

Published: 2nd September 2010

PERTH (miningweekly.com) – Eritrea-focused Chalice Gold could start construction at its Koka openpit mine by the end of the year, depending on the duration of the permitting process, it said on Thursday.

The permitting process was under way, and was expected to go “fairly smoothly”, MD Doug Jones said at a conference.

The Koka deposit forms part of Chalice’s flagship Zara deposit, and hosts an ore reserve of 760 000 oz of gold.

Speaking at the second day of the Africa Downunder conference, in Perth, Jones said that the company was undertaking an “aggressive” exploration programme and was “desperate” to extend its resource to above one-million ounces.

“We have a very extensive ground position and a lot of highly prospective geology,” he noted.

Jones noted that a recent feasibility study into the Koka deposit has found that the project would have “very strong” economics and would offer low prospecting risks.

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