Chalice Diamond Corp.
TSX VENTURE : COD

Chalice Diamond Corp.

December 15, 2009 08:45 ET

Chalice Diamond Corp. Enters West Timmins District with Acquisition of Gold Project along Destor Porcupine Fault Zone

- PROPERTY LOCATED SOUTH OF DESTOR PORCUPINE FAULT ZONE, APPROXIMATELY 30 KM SOUTHWEST OF LAKE SHORE GOLD DISCOVERY OF 12.75 G/T GOLD OVER 83.4 METERS

- LAPP LAKE IS CHALICE DIAMOND'S FIRST PROJECT LOCATED IN WEST TIMMINS GOLD DISTRICT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 15, 2009) - Chalice Diamond Corp. (TSX VENTURE:COD) (the "Company") is pleased to announce, subject to regulatory approval, the acquisition of a 100% interest in the Lapp Lake property, located in the West Timmins district. The Lapp Lake property consists of six claims (78 units) in Sewell Township, is accessible by road and is approximately 45 km southwest of Timmins.

Click on the following link to view a map of the Lapp Lake property:

http://media3.marketwire.com/docs/tw_map_1215.pdf

"We are excited at the prospect of expanding our current area of exploration to the West Timmins camp and look forward to moving ahead with the Lapp Lake property. Previous work completed on the property along with recent successes had by other companies along the Destor Porcupine Fault Zone will help guide initial exploration," comments Company Chairman, Richard Hughes. "Chalice Diamond recently shifted its focus to include precious metal projects following the discovery of high-grade gold on its Old Cabin project and will continue to modify its exploration model as many of its current properties are highly prospective for a wide range of both metals and diamonds." 

Quartz veins containing sulphides revealed by previous vendors of the property will be the focus of initial exploration as there are no known records of previous sampling being completed. Significant alteration is visible throughout the property as a result of its proximity to the Destor Porcupine Fault Zone.

Consideration for the property consists of $70,000 and 350,000 shares, payable over three years. There is a 3% net smelter return payable, two-thirds (2%) of which may be purchased for $1,500,000.

About Chalice Diamond

Chalice Diamond Corp. is a member of the Hughes Exploration Group of Companies and is led by a team with a stellar track record of discovery and development in Canada.

Chalice Diamond Corp., in conjunction with joint venture partners, is continuing the search for diamond, base and precious metal deposits in the Wawa-Chapleau region of Ontario, where it has staked or optioned approximately 100,000 hectares of highly prospective ground.

Or visit Chalice Diamond's web-site: www.chalicediamond.com for current information and to see Smartstox interviews with company Chairman Richard Hughes.

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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