Zara Project Exploration Potential

Koka Near Mine

Chalice has ramped up its near-mine activities at the Zara Gold Project, with a focus on identifying new prospects to increase resources in the vicinity of the high-grade Koka Gold Deposit, which hosts an indicated Mineral Resource of 840,000oz at a grade of 5.3 g/t gold.

Results from a key deep penetration Induced Polarisation (IP) survey over the Koka-Konate corridor reveal numerous strong IP resistivity targets along a 7.5 km long strike length. In many cases these are coincident with soil gold anomalies and in some cases with artisanal workings (Figures 1 and 2). Strong IP chargeability anomalies have also been identified to the west of the Koka Deposit. Drilling of these targets commenced in late May 2011, with a nominal program of 8-10,000 metres of diamond core drilling planned.

Figure 1:  Koka-Konate IP survey showing resistivity anomalies and gold soil anomalies

Figure 2:  Long section showing IP resistivity anomalies (looking east)

Regional Exploration

Results from a reconnaissance Bulk Leach Extractable Gold (BLEG) drainage sampling program completed over the Zara properties and in the Debre Tsaedo area south of Konate on the Zara Central tenement has outlined an extensive zone of gold anomalism in the western half of the Zara North tenement.

Follow-up in-fill sampling using conventional stream sediment sampling has confirmed that this gold anomalism on the Zara North tenement extends over a strike length of ~10 km with values of up to 876ppb gold recorded (Figure 3).

Figure 2: Anomalous BLEG -80 mesh gold values - northern Zara Project

Field checking has revealed artisanal workings in several of the anomalous drainages often associated with a semi-continuous high-strain zone with intense carbonate-sericite alteration and quartz veining over a 30-50m wide zone that extends the length of the anomalous zone. Reconnaissance rock chip sampling along this zone has returned assays of up to 27 g/t gold in grab samples.

Systematic soil sampling has now been completed over the western half of the Zara North and Zara Central tenements to define the source of the stream sediment anomalism (Figure 4).

Figure 4: Location of soil sample grids showing gold-in soil values above 500 ppb Au in Red

Competent Person Statement
The information contained on this website that relates to Exploration Results is based on information compiled by Dr Doug Jones, a full-time employee and Director of Chalice Gold Mines Limited, who is a Member of the Australasian Institute of Mining and Metallurgy and is a Chartered Professional Geologist. Dr Jones has sufficient experience in the field of activity being reported to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves (the JORC Code) and is a "Qualified Person" under National Instrument 43-101 - 'Standards of Disclosure for Mineral Projects‘. Dr Jones consents to the release of information in the form and context in which it appears here.