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Chalice Gold Mines strikes deal with Government of Eritrea
Chalice Gold Mines (ASX:CHN)(TSX:CXN) has moved closer to development of its Koka Gold Mine at the Zara Project after executing an agreement with the Government of the State of Eritrea.
Chalice's 60 per cent-owned Eritrean joint venture company, Zara Mining Share Company (ZSMC), struck the deal with Eritrea which governs the future development and operation of the Zara Project.
ZMSC has also applied for a Mining License for a period of 18 years, which the Government has advised will be issued shortly.
Tenders for the construction of the plant and mine are being received and assessed, with final selection of the contractor expected to occur before the end of the year.
This should enable Chalice to move ahead with financing and development of the high-grade Koka Gold Mine at the Zara Project.
With the granting of all necessary permits and licences and other such matters, this could enable Chalice to begin production at Koka in late 2013.
Koka has a Probable Mineral Reserve of 760,000 ozs at a grade of 5.1 g/t gold and an Indicated Mineral Resource of 840,000 ozs at a grade of 5.3 g/t gold.
The project feasibility study is based on annual average production of approximately 104,000 ounces of gold per year at a cash cost of US$338 per ounce of gold.
State of Eritrea ሃገረ ኤርትራ Hagere Ertra دولة إرتريا
Anthem: Ertra, Ertra, Ertra Eritrea, Eritrea, Eritrea
Capital (and largest city) Asmara
15°20′N 38°55′E / 15.333°N 38.917°E / 15.333; 38.917
Official language(s) Tigrinya, Arabic, English Other languages Tigre, Saho, Bilen, Afar, Kunama, Nara, Hedareb,.
Ethnic groups 60% Tigrinya, 30% Tigre, 4% Afar, 3% Saho, 3% Kunama
Demonym Eritrean Government Provisional government
- President Isaias Afewerki
- 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
- Total 117,600 km2 (100th)
45,405 sq mi - Water (%) 0.14%
- 2009 estimate 5,224,000 (109th)
- 2008 census 5,291,370
- Density 43.1/km2 (165th)
GDP (PPP) 2010 estimate
- Total $3.625 billion
- Per capita $681
GDP (nominal) 2010 estimate
- Total $2.117 billion
- Per capita $397
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/; 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...