august epiphany

July 2010 was the month when the Eritrea regional joint venture with Newmont was signed subject to formal documentation;

"We are very pleased to welcome Newmont as a partner in Eritrea. We see this venture as beneficial to both companies, providing Newmont with our in-country presence and knowledge base and Chalice with Newmont's financial strength and cutting-edge technological expertise," said Dr Doug Jones, Managing Director.

September 2010 was the month when the much anticipated joint venture with Newmont was shelved;

"Chalice Gold Mines Limited advises that it has informed Newmont Mining Corporation that Chalice will not proceed with a planned regional joint venture agreement in Eritrea," said Tim Goyder, Chairman.

Whatever happened in August must have been quite extraordinary. The decision to go alone and reject the Newmont proposition before the ink had barely dried may signify a quiet word in the ear of directors that future exploration funding will not be an issue. The potential for discovery within the 24,000 sq km under application which attracted Newmont has also potentially attracted investors with deep pockets. The land position in Eritrea which is held by Chalice has become prime real estate for major mineral discoveries.