Koka closer to production withcompletion of Social...

Koka closer to production with
completion of Social and
Environmental Impact Reports
Chalice Gold Mines Limited ABN 47 116 648 956 7 October 2010
Highlights
? Koka Social and Environmental Impact Assessment and Management Plans
completed and lodged with Eritrean authorities
? The move is a major milestone in the process of obtaining a mining licence
for the Koka Gold Mine, which is part of the Zara Project in Eritrea
? 840,000 oz Koka deposit on track for first production in 2013
INVESTMENT HIGHLIGHTS
Chalice Gold Mines Limited (ASX: CHN) is pleased to advise that it has taken a
major step towards 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 Pi?sold 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.