on the fringe.., page-9

Just thinking aloud, even if Sunridge could be purchased at a screaming bargain, and just saying Chalices Mogabain North has a deposit that proves to be a viable project, the advantage in having both would be that they can be watched closely. Due to the distance between Chalices Mogabain North tenement and Sunridges deposits are too far improve physical operations.

The disadvantages are not diversifying the sovereign risk into two projects in two different counties. That must be a big issue. To boxed in and at the mercy of the Eritrean govt, must be a terrible situation, and easily avoided at this stage by simply not buying Sunridge.

I would have thought a financier of an eventual project in Eritrea can still take collateral over another mining project in another country.

Another problem with Sunridge is it is spread over 5 deposits and close to the capital city. I do think Subridge could become highly desperate, and maybe neither the Chinese or Nevsun won't want that project. Sunridge may get finance from Canada and then Chalice can take note. Not that finance should be much of a concern to Chalice anymore.

It has taken Sunridge say 4 genuine years to get to this stage, maybe their project is worth, when compared to Zara, say $40 million. This is around the same level of their mkt cap. Maybe if the Eritrean govt were to make it a condition that Nevsuns yet to be constructed port infrastructure can be used by Chalice without any contribution to infrastructure cost, and the Eritrean govt grants a bigger exploration area to Chalice, then there could be sone sort of a remote possibility. But it would need to be stacked in favour of Chalice. Is Sunridges main deposit outstanding? I don't think so.

In the coming few months Chalice may find something bigger and better anyway.