Chalice Gold Mines Limited (ASX:CHN) (TSX:CXN) advises that it has agreed to enter into a joint venture with the Eritrean National Mining Corporation (“ENAMCO”) in relation to its Mogoraib North and Hurum Projects in Eritrea (“the MHJV”).
The MHJV will be owned 60 per cent by Chalice and 40 per cent by ENAMCO (including a 10 per cent free carried interest) and will be funded in accordance with each party’s paid participating interest, being two thirds Chalice and one third ENAMCO.
In consideration for ENAMCO acquiring its 30 per cent paid participating interest in the MHJV, subject to audit, ENAMCO will sole fund an estimated ~US$750,000 of exploration expenditures from 1 March 2012. This represents one third of historical project-to-date expenditures incurred at Mogoraib North and Hurum.
A Versatile Time-domain Electro-Magnetic (VTEM) survey was completed in mid-2011 at Mogoraib North that identified over 60 bedrock conductors potentially indicative of Volcanic Hosted Massive Sulphide (VHMS) bodies. Modelling of the VTEM conductor geometries has been completed and the numerous targets identified have been prioritised for drilling.
– – – – – – – – – – –