Chalice Gold workers die in Eritrea

Chalice Gold workers die in Eritrea October 7, 2009 Chalice Gold Mines Ltd has reported the death of one its employees and two of contractors in a shooting incident near its gold project in Eritrea.

Chalice said in a statement on Wednesday that the incident occurred on a public road 110km south of its Zara project and 35km northwest of the town of Keren.

"The deaths are believed to be the result of a shooting incident and an investigation by the Eritrean authorities is underway," the Perth-based company said.

Executive chairman Tim Goyder said the incident appeared to be an isolated event unrelated to Chalice and its operations.

"Executive director Mike Griffiths is in Eritrea to assist where possible," the company said.

Chalice said the scoping study for the Zara project remained on track for completion later this month.