Chalice looks for cash for Eritrean gold project

KATE EMERY, The West Australian Chalice Gold Mines is poised to test the appetite of money markets, with the Tim Goyder-headed explorer cleared to start raising funds for its $131 million high-grade gold project after getting

KATE EMERY, The West Australian

Chalice Gold Mines is poised to test the appetite of money markets, with the Tim Goyder-headed explorer cleared to start raising funds for its $131 million high-grade gold project after getting the final nod from the Eritrean Government.

Chalice hopes to start construction of the Koka mine early next year, which will mean having to secure finance within the next couple of months against a backdrop of global volatility. In its favour is the positive investor sentiment towards gold projects in Africa and a near record price for the precious metal, which closed at $US1724.85 an ounce in Sydney last night, up $US7.32/oz.

Chalice, which owns 60 per cent of the project, is expected to fund its share with a combination of debt and equity. It has about $9 million in the bank and is scheduled to receive $32 million from the Eritrean Government by January 27, which it agreed to pay for a 30 per cent stake.

News yesterday that Chalice had signed a mining agreement with Eritrea’s Government was enough to keep its shares in the black in a falling market. They closed 0.5¢ higher at 27.5¢, while the market’s key S&P-ASX 200 index lost 48.3 points to 4184.6.

Chalice wants to establish a 104,000- ounce-a-year gold operation at Koka, which is on the region’s Arabian-Nubian shield. At current prices, the operation would be highly profitable, with forecast cash costs of $US338/oz.
With Koka’s indicated mineral resource of 840,000oz grading 5.3 grams a tonne, it is one of the highest-grade African deposits being developed by a WA company and will be Eritrea’s only second major mine.

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19 COMMENTS
  • Michael November 3, 2011

    dehano assenna?

    entayde’a hasibkum nay werqi wedi qwerqi ziena? kulu himaQ tewdeekum tmeslu. yayayayaeeee nuu de’a kemqedemkum azenag’una. Solomon Abera Tefi’u Feven Tefi’a. Amanuiel ksab hiji neKisu alo. I hope nsus yexanHana gdi yKewn. anxar hager zeyblus kief yeblun. bmntay dea knzenaga’e. Please Ema Hadera keytgedfena.

    • Solomon November 3, 2011

      Hi Michael. Shimkas michael eyu sirahka gin satnael eyu. sala HGDEF yegarna senkilu , ey entina miray sienu nibelo nisetiyo siena. dekina timiyet moytom. maeserti bezihina. ab kindi zegelgelna, ab kindi eshi elan ziteleakna ab kindi kem bariya bizey domoz ni 15 amet ziserahna zigeberna zeyblna teasirna , tegerifina senkilna. bi kinat weyane senkilna’s netaziterefet aynina keani HGDEF adagimuwa ab za midri sikay nehilif alena. nisikan kemakan halefti HGDEF n gin tsibuk alekum. neta hanti dimtsi wutsuat koyna zela dimtsi assenna embear mezenagie koynatini elkaya.
      tonkol kemzeleka michiel zeykonkas satnael mikanka kit negrena delika ember mezenagie entetidelis nab ASSENNA amimetsakan nab TV ERE mikedka . gaylan chiferan abu’u ybezih.

      assenna deany shigir hizbi ERITREA tizareb ember gaylan chiferan kem TV ERE kit kewin delikaya. Hkika nezem zegibkum tiemukum zelo mezenagie eyu nezem chenikina zelo gin shigirns eya tinegrelna zela.

      Kemta nisika dimtsi ASSENNA mezenagiet kit koneka zitemenekaya ane keani ezikulu aban ab dikatat Eritreawian weridu zelo shigirin motin mekeran ab zihatsere giziye naba kan nab kulom sidrakan kiwerid yminey aleku. O! Amlakey nezom meriyet nab gehaneb esat tyelewitatna kola zeysikorom melagezti Eritreawian beti zirideom kanka keteredeom neana keani nieshtoy tnfas kitfetrelna ylimineka aleku. AMEN!!!!!!!!!!!!

      • diana gual gejeret November 4, 2011

        solomon
        even for me asena is very funny. you know why I visit all the time this web site? becouse las micheal said it is MEZENAGI`E. All they write is false. They are a propaganda machine of the state department of america. Do you think they are happy becouse we get a gold in eritrea? NO! they are very jeayolos. Tommorow we are going to sign with our partners CHINESI to get our petrol. Congratualation my people.

        • Hermon November 5, 2011

          I think because u are blind and ignorant! If it is funny for u to read about the plight and suffering of Eritea, then you. Need to open your eyes to see every thing what you read in Assenna is the voice of the scilened and enslaved Eritreans. For instance to read about the unfortunate Eritreans who are being exploited and murdered at the Sinai is funny for you ha??

    • Yonathan Sebhatu November 3, 2011

      You and your dictator has contributed to the suffer of eritreans!!!http://demo.assenna.com/abuse-of-eritrean-refugees-in-senai/

      Pls stop wannabe eritrean, you are wanted on court soon!

  • simon haile November 3, 2011

    The fist good news from this web. Mr Webmaster are ok today. Not like you to post good news about eritrea. Keep it up.

    Job welldone to Government and pepole of Eritrea.

    Thank you

  • Selam November 3, 2011

    Ummm, posting to opposite news (Sanction and Gold prospect) on the same day.
    I don’t have any problem as long as you don’t take sides.

  • Solomon November 3, 2011

    Sorry simon:

    You are totally wrong to say **Job welldone to Government and pepole of Eritrea**. HGDEF (ERITRAWIAN SHEFATU EMBER MENGSTI AYKONUN) is not government there is no government en Eritrea, they terrorists, hijackers, and vampires People.

    We poor Eritreans will have nothing but death and suffer!
    Thses gold production is for you and the following dektators

  • Kalu November 3, 2011

    Solomon,

    Don’t be a cry baby, every Eritrean contributes his/her dues to save the beautiful nation from its’ hungry enemies. God bless you for serving 15 years I doubt you did that but do you know that thousands of brothers and sisters gave their life and thousand spent their entire life serving the nation and still they are serving tirelessly.

  • Kalu November 3, 2011

    Brothers and sisters don’t be fooled the intent for posting this article is evil, but it didn’t work as expected. The evil intent is to twist “Chalice looks for cash” to show as shortage of money and desperation of help. But, this is a process of looking investors after the company’s satisfactory exploration and secured the deal with the government of Eritrea. No matter what ever the thugs think, it is the continuation of the fast growing success of the great nation under the best governance of the great leaders. The camel is marching and the dogs still barking.

    • amuca November 4, 2011

      wey halewlew, hade zanta kenegrekum ahewat, Gazetena Hegdef hizbi akibu adi maebila raeina kewun koinu yebel, hade Shemagel abo tekebel abilom semae ezawedey zanta kenegreka belewo, hade gezei hadesekram sebay teal (goat) yegezea emo negeho negeho saeri kemtsalki eye yebla entekone gen meshet sekiru yemese mealtat halifu saeri keyemsala meherada akilu teal (goat) tereaka ezna terah sebihu. heji dema eza wedey bezereban nayhasot mebtsean gezeina halifu mot arkub, zeamen tezareb dea ente nehna arigna adi gen zehali seb yefterela belewo yeblekum. Werki wetseyu Potash wetseyu nehezbi eritrea aytekmon eyu leali Engera hezbi Netsanet, Fetehi, Maerenet, Mesel, eyu tsemiewon temiyewo zelo…

    • diana gual gejeret November 4, 2011

      kalu I agree with you you are a greta person, and I like you becuase you love your country and your people.

    • simon haile November 4, 2011

      Kalu,

      100% I agree with you.

      Eritrean train never stops. Good job to Eritrean people and the great Government of Eritrea.

      The Eritrean camel is marching and the dogs still barking. say no more.

      Thank you.

    • kozami November 4, 2011

      Kalu
      That is a great observation. Keep reading beteewn the lines my friend, modern war is fought with lies and fabrications. We need to defend Eritrea by busting each lie, one at a time.

  • amuca November 4, 2011

    Hade tezarbi nay higi kunetat adena mesgeremo, wey Hegdef Singapore zebehaleley zeneberes adi singlepoorrrrrrrr country geroma bele eblekum, HAKI AZARIBEWO, YERHEWO,

    • Abdi November 4, 2011

      (Rega yale wetet qbe ywetowal) (zrege’e tsebas Tesmi ‘wetso ) yblu amharu,ayttehwekh agamuca kelte gzie kenezarbeka eina, kab ztmbetsEnayo nmles hzbi aykonan, zentgbro kea mbtsaA aynatun ena!

  • amuca November 4, 2011

    abdi, mejemeria beshemka kejemer amiche abdi, abdi malet betegrina kebti malet eyu belaei saeri abzebelealu zeharei ayteredaeakan alo 20 amet (years) halifu nebseka aykonen ezneka keman ketehakek eya, abdi seb kun kem seb heseb, eritreawes emni mesilewo afra eyu regitsu, tegodieyu adeda sedeten kelbetbeten koinu, eritrawi abti zetehate dereja yerekeb, kelbi do gemel gobeye nehbi anbesa hatewtew seb nukun sebeyu kebur.

  • Semhar November 4, 2011

    Thanks to US State Department. Susan Rice made Eritrea’s dictator look small.

    US Opposes Eritrea President Meeting Security Council,

  • Kalu November 4, 2011

    Semhar,
    I feel so sorry for you for having a very shallow thoughts. As I said before you need to attend in kindergarden of politics and go back revise your history and read the heroism of the founding fathers. If you had brain you couldn’t have understood on the reverse why Suzan Rice opposed to the great president. It is simple, they call Eritrea a tiny nation but our idea and philosophy is a thunderstorm for them. It trembling them as earthquake and that is why she opposes PIA to protect from exposing her concocted laid.

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