In a move with significant ramifications, Chalice Gold Mines (ASX:CHN) has exercised an option to purchase the remaining 20% interest of the Zara Gold Project in Eritrea (including the Koka Gold deposit) from Dragon Mining Limited (ASX:DRA).
Chalice’s ownership in the Zara Gold Project will move to 100%.
A feasibility study is near completion on the project and is due by July 2010. Recently, Chalice inked a maiden ore Reserve of 760,000 ounces for the Koka Gold deposit, part of the Zara Project in East Africa.
As consideration for acquisition, Chalice will today pay the balance of $7.75 million, for a total of $8 million, to Dragon and will issue Dragon with 2 million Chalice vendor shares subject to satisfaction of normal conditions outlined in the Sale and Purchase Agreement.
A deposit of $250,000 had previously been paid on grant of the option. A further $4 million will be paid to Dragon on delineation of a 1 million ounce gold Ore Reserve at the Zara Project.
Zara is a high grade deposit, 840,000 oz @ 5.3 g/t, with significant unexplored ground position and hence upside in resource inventory and with targeted first production in 2011.
Demonym Eritrean Government Provisional government
- President Isaias Afewerki
Independence
- From Italy November 1941
- From United Kingdom under UN Mandate 1951
- from Ethiopia de facto 24 May 1991
- From Ethiopia de jure 24 May 1993
Area
- Total 117,600 km2 (100th)
45,405 sq mi - Water (%) 0.14%
Population
- 2009 estimate 5,224,000[4] (109th)
- 2008 census 5,291,370
- Density 43.1/km2 (165th)
111.7/sq mi
GDP (PPP) 2010 estimate
- Total $3.625 billion[5]
- Per capita $681[5]
GDP (nominal) 2010 estimate
- Total $2.117 billion[5]
- Per capita $397[5]
HDI (2007) steady 0.472 (low) (165th)
Currency Nakfa (ERN)
Time zone EAT (UTC+3)
- Summer (DST) not observed (UTC+3)
Drives on the right
ISO 3166 code ER
Internet TLD .er
Calling code 291
1 ,. National TV: Eritrea Television (ERI-TV)
Eritrea (play /ˌɛrɨˈtreɪ.ə/ or /ˌɛrɨˈtriːə/;[6] Ge'ez: ኤርትራ ʾErtrā, Arabic: إرتريا Iritrīyā), officially the State of Eritrea, is a country in the Horn of Africa. The capital is Asmara. It is bordered by Sudan in the west, Ethiopia in the south, and Djibouti in the southeast. The northeast and east of the country has an extensive coastline on the Red Sea, directly across from Saudi Arabia and Yemen. The Dahlak Archipelago and several of the Hanish Islands are part of Eritrea. Eritrea's size is approximately 117,600 km2 (45,406 sq mi) with an estimated population of 6 million...
Source: Wikipedia
In a move with significant ramifications, Chalice Gold Mines (ASX:CHN) has exercised an option to purchase the remaining 20% interest of the Zara Gold Project in Eritrea (including the Koka Gold deposit) from Dragon Mining Limited (ASX:DRA).
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