Koka closer to production with completion of Social and Environmental Impact Reports

Chalice Gold Mines Limited is pleased to advise that it has taken a major step towarddolomite stone grinding mill project reports production at its Zara Gold Project in Eritrea with the completion of the Social & Environmental Impact Assessment (SEIA) and Social & Environmental Management Plan (SEMP) for the 840,000oz Koka Deposit at Zara.

The SEIA and SEMP have been lodged with the Eritrean Ministry of Energy & Mines. These reports form a key component of the documentation required to secure a mining licence for the Koka deposit. They represent the culmination of two and half years of environmental, socio-economic and community studies.

The studies were conducted by independent consultants Knight Piésold and Global Resources Development and Management Consultants (GREDMCO) in line with internationally accepted standards.

Chalice will press ahead with planning for the development of the Koka mine, with first production scheduled for early 2013. Koka is forecast to produce at an average annual rate of 104,000 ounces at a cash cost of US$338/oz.