Chalice reports death of three workers

Gold exploration outfit Chalice Gold Mines has reported the death of one its employees and two contractors in a shooting incident near its gold project in Eritrea.

West Perth-based 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.

Shares in the company were up half a cent, or 1.3 per cent, at 39 cents at 1417 AEDT.