News: Chalice Gold Mines wraps up acquisition of Dubenski Gold Deposit

Chalice Gold Mines (ASX:CHN,TSX:CXN) has wrapped up ownership of a gold deposit near its Cameron Gold Project in Ontario, Canada for a consideration of C$700,000.

The cashed up Chalice with circa $50 million in reserves will gain potential open pit feed material from the acquisition to add the existing resource at Cameron, which was acquired from Coventry Resources for 46 million shares earlier this year.

Cameron has a Measured and Indicated Resource of 567,100 ounces of gold grading 2.45 g/t and an Inferred Resource of 830,100 ounces of gold at 2.11 g/t.

The re-negotiated agreement to acquire the deposit named Dubenski, is less than 10 kilometres to the west of the Cameron project.

Dubenski has an Indicated Resource of 59,000 ounces running at 2.28g/t gold and an Inferred Resource of 18,200 ounces at 1.44g/t gold to a depth of 150 metres below surface.

There is an additional payment on the Dubenski deal on all gold production mined in excess of 70,000 ounces (of US$13 per ounce where the gold price is less than or equal to US$1,500 per ounce and US$16 per ounce where the gold price is greater than US$1,500 per ounce).

The acquisition fits the bill of finding prospective areas outside the Cameron deposit relatively underexplored to add gold resources for future development.