Chalice Diamond Corp.
TSX VENTURE : COD

Chalice Diamond Corp.

December 21, 2009 09:01 ET

Chalice Diamond Corp. Samples 48.5 g/t Gold on Reid Vein at Old Cabin Project

- HISTORIC CHANNEL SAMPLE OF 1.18 OZ/T GOLD OVER 5.5 FEET ON PARALLEL VEIN

- PROPERTY CONTAINS 13 INDEPENDENT VEIN SYSTEMS

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 21, 2009) - Chalice Diamond Corp. (TSX VENTURE:COD) (the "Company") is pleased to announce further sampling of the Reid Vein on the Old Cabin project has produced a sample of 48.5 g/t gold. The sample was taken approximately 1.5 meters away from previous sampling which returned assays up to 211 g/t gold. 

"We are encouraged by the consistency of high-grade gold along the Reid Vein. Our proposed 2010 program will attempt to identify the potential correlation between the numerous gold systems. This will be followed with diamond drilling to test the downdip extent of gold mineralization on the Reid vein as well as additional veins if warranted," comments Company Chairman, Richard Hughes.

A sampling and stripping program on the property exposed additional quartz vein systems with extensive carbonate and sericitic alteration with disseminated pyrite and anomalous gold values throughout.

To date, thirteen independent vein systems have been recognized including an extensively trenched 550 foot long zone on the No 10 zone which has a historic channel sample assay of 1.18 oz/t gold across a width of 5.5 feet. It would appear that little mapping or interpretation has been carried out on this property in order to correlate these vein systems.

Because of the similarities in lithological and structural settings as well as styles of mineralization, it is believed that these independent occurrences may actually be part of a larger deeper seated vein system.

A recent "in house" ground magnetometer survey revealed a curvilinear arccuate northeast to southwest trending series of magnetic highs interpreted as gabbroic and possibly peridotitic ridges occurring along the spine of the Goudreau Anticline. The fold axes in large scale dilatent fold structures such as the Goudreau Anticline may be preferential sites for the development of major shear structures and ideal sites for the emplacement of gold bearing fluids

2010 exploration on the Old Cabin project will consist of a compilation of the additional vein systems sampled on the property in an attempt to correlate these gold systems.

Peter Caldbick, P.Geo. has reviewed and approved the press release. Mr. Caldbick is the qualified person for the purposes of National Instrument 43-101 for the Company's Wawa project.

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.

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.

Contact Information