Chalice Gold Mines (TSX:CXN)(ASX:CHN) announced Thursday that it has been granted two new major exploration licenses in Eritrea, covering 830 sq kilometres in the northern part of the country.
The new licences, Mogoraib North and Hurum, add to the company’s existing exploration tenure in the region as part of the Zara project. Chalice has set aside $1 million as an initial budget to explore the new prospective areas for the first 12 months.
Mogoraib, which covers 555 sq km, lies 10km north of Nevsun Resources’ Bisha gold and base metal deposit that began production earlier this year, and shares similar geology. Hurum, which is 275 sq km, straddles the same regional structure that hosts the 840,000 ounce indicated resource at Chalice’s flagship Koka Gold deposit, and lies southwest of the company’s Zara South licence.
The company also said today that it has converted its prospecting licenses on Zara North and South, which together cover an area of more than 450 sq km, to exploration licences.
With the granting of these new tenements, and the successful conversion of Zara North and South to Exploration Licences, Chalice now holds Exploration Licences totalling some 1445 sq km in a region that has a demonstrated potential to host substantial high grade gold and base metal deposits,” said chairman Tim Goyder.
Chalice rose 6% on the Australian Stock Exchange today to close at A$0.69.