chalice hits massive..., page-10

http://www.mineweb.com/mineweb/view/mineweb/en/page674?oid=161240&sn=Detail&pid=674
Extract

Chalice's current drilling program is targeting Volcanic Hosted Massive Sulphide ("VHMS") systems similar to the Bisha, Harena and Hambok deposits to the south of Mogoraib North and is based on the commonly developed clustering of such deposits.

The new prospect lies along the interpreted Bisha geological trend, 15km north of the Bisha operations as shown in Figure 1. The characteristics of the sulphide mineralisation encountered in the Company's discovery hole (MOGD-00021) indicate a VHMS affinity.

The prospect currently being targeted is one of numerous bedrock conductor targets generated by a 3,825km Versatile Time-domain EM ("VTEM") survey flown by Chalice in 2011. In May 2012, following modelling and further refining and ranking of these targets, the Company embarked on a 5,000m diamond drilling program to systematically test these targets.
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Would not be a disaster if masses of other metals other than gold were found Hinklestab. Zinc and copper do not sound as sexy as gold but a big multi metal deposit could bring in as much money.

On the money back deal always thought that was the wrong move.

It was always likely that Chalice would make more discoveries in Eritrea considering how promising the geology is and effectively any money the company has will have to be split on projects inside and outside the country.

More money in the coffers means a stronger negotiating position in the future in Eritrea. Chalice were over a barrel before because a lack of funds. It would not be very popular with many people but think the company would be better off (long term) scrapping the funds return.