PERTH (miningweekly.com) – ASX-listed Chalice Gold Mines has acquired an option to buy the remaining 20% stake in the Zara gold project, in Eritrea, from fellow Australian explorer Dragon Mining.
Chalice can exercise the option at any time until the end of June, by paying Dragon A$8-million and issuing it two-million Chalice shares.
Chalice has agreed to pay Dragon a further A$4-million on delineation of a one-million ounce economically mineable gold ore reserve at the Zara project within the currently held joint-venture (JV) licences.
“The opportunity to acquire the balance of the Zara project is extremely attractive to Chalice,” said executive chairperson Tim Goyder.
“We now have the opportunity, for the first time, to consolidate ownership within the one entity of this high-grade project, which already has open-pittable resources of 944 000 oz at a grade of 5,8 g/t, a feasibility study due for completion midyear and substantial exploration potential.”
Goyder said that the option came at a time when the company was moving full-steam ahead with the feasibility study on the Koka deposit and the start of drilling at the nearby and parallel Koka East target, also in Eritrea. Early indications are that Koka East is similar in outcrop to the current resources.
Upon exercising the option, Chalice will own 100% of the Zara exploration licences with the Eritrean government being entitled to a 10% free-carried interest on the grant of a mining lease.
In addition, the government has the right to purchase a further interest, up to 30%, based on an independently determined value.
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