Golden Chalice Resources Inc.
TSX VENTURE : GCR

Golden Chalice Resources Inc.

August 25, 2010 09:00 ET

Golden Chalice Resources Sets New Agenda and Provides Update Following Timmins' Meetings

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 25, 2010) - Golden Chalice Resources Inc. (TSX VENTURE:GCR) ("The Company") is pleased to announce the outcome of its three day meeting held at the Company's offices in Timmins, Ontario, earlier this month. The new management team and Board of Directors established a focused mandate to move forward creating the best possible environment to advance senior projects and explore properties of highest potential while at the same time dropping properties of lesser merit.

The Company's ongoing objective is to evaluate properties in a timely and efficient manner, advance those of merit, and terminate those with lower potential which may draw resources away from other projects. The Company recognizes the importance of both "grass-roots" and advanced exploration projects and will continue to ensure it is adequately diversified without overextending its resources. Furthermore, the Company will actively seek JV partners to help advance and potentially develop existing, advanced-stage properties, as well as early-stage properties which do not fit in with near term exploration plans. New management is committed to fiscally responsible business practices and acting in the best interest of its shareholders.

Recent Company Highlights:

A new management team, as well as new Directors, were put in place on June 28, 2010. This team includes Steve de Jong, Director, President, Stephen Pearce, Director, CFO and Frank Durant, Director. On July 9, 2010, Trygve Hoy, PhD, PEng, also joined the Board of Directors. On August 18, 2010, Dr. Hoy was named Company VP of Exploration.

The Board of Directors intends to invite an iron ore expert to participate on the Board to help advance the Radio Hill and Nat River projects.

The head office in Vancouver has been moved, and is now temporarily located at 1290-625 Howe Street.

A thorough review of the Company's entire land holdings led by Dr. Hoy, PEng with input from Peter Caldbick, PGeo, Kevin Montgomery, PGeo, Terry Mersereau, PGeo and Andrew Tims, PGeo, as well as a number of Company consultants, has been completed with priority given to maintaining and advancing only those properties with the highest mineral potential.

The geological review and property evaluation determined the following:

  • Langmuir Nickel Deposit: The recently completed NI43-101 indicates open pit potential as well as several still untested areas below the existing deposit and elsewhere on the property. A number of proposals for environmental baseline studies from environmental consulting firms are under review. The Company hopes to commence preliminary work on its baseline study in the immediate future. A number of options, including joint venture possibilities, are being evaluated as the Company continues to advance the W4 deposit towards production.
  • Radio Hill Deposit: The Company is pleased and encouraged by the recently completed NI 43-101 'Property of Merit' report on the iron ore project and will be actively seeking a joint venture partner. Further drilling may be required to upgrade the existing historical resource to today's NI 43-101 standards. The Company is looking to appoint an iron deposit expert to the Board of Directors to assist with this project.
  • Nat River Project: This iron-ore anomaly is located adjacent to the Radio Hill project and requires further drill testing as well as petrological examination. The proximity and untested nature of the Nat River iron formation add greatly to the overall potential of Radio Hill.
  • Abitibi East – East Extension: The central part of the block has considerable volcanogenic massive sulphide (VMS) potential, and will be retained; adjacent claims will be dropped.
  • Abitibi East – Warden: This property has been returned to its vendor.
  • Abitibi East – Shallow River: The Company will pursue a JV partner for further exploration on the Shallow River VMS target.
  • Brinklow: This property, located near Thunder Bay, Ontario, (near Premier Gold's property with reported 1.3 million ounces of gold) has had considerable early-stage exploration by the Company which has defined several gold targets. Trenching of some of these targets, including coincidental IP/geochemistry targets, is scheduled to begin immediately.
  • Ellen Creek: A "grassroots" exploration property, in good standing, with several prospective gold targets that the Company will explore in the future.
  • Kenogaming: This property has been terminated.
  • Kenogaming South: This property has been terminated.
  • Kimberlite Portfolio: Enough assessment work has been done to keep these properties in good standing. Their potential will be reviewed again in the future.
  • Monpre: This property, which does not require further property payments and is in good standing, will be kept until a more detailed evaluation of its gold potential has been made.
  • Northland: This property, located in the Kirkland Lake gold camp, is considered to have significant gold exploration potential. Early-stage exploration indicates a drill program is warranted. The property is in good standing and will he held until a JV partner is located or until the Company is in a position to drill.
  • Porphyry: This property has been terminated.
  • Row Lake: Enough assessment work has been done on this property to keep it in good standing for at least three years. It has diamond, nickel and copper potential and will remain in the Company's portfolio as a "grass-roots" project.
  • Shillington: A copper-gold property that the Company will continue to explore as a possible iron oxide copper gold (IOCG) or porphyry system; property size will be reduced considerably to minimize exploration funding requirements.
  • Shillington West: This property has a large VTEM anomaly in a mag low area with considerable potential. Geological mapping and prospecting are required to further evaluate it.
  • South Porcupine: This property has both gold and zinc targets and is currently in good standing. Recent drilling intersected anomalous amounts of gold and results indicate further drilling is warranted. A JV partner may be brought in to advance this project.
  • Taylor Group Claims: Located in the Bathurst district in New Brunswick, these claims have excellent VMS potential. The property size is currently being reduced and plans for further exploration, focusing on core areas, are being prepared.

The Company will continue to update investors as it develops exploration plans for those properties it has decided to move forward with as well as provide regular updates on its advanced Langmuir and Radio Hill projects.

This document contains certain forward looking statements which involve known and unknown risks, delays and uncertainties not under the corporation's control which may cause actual results, performance or achievements of the corporation to be materially different from the results, performance or expectation implied by these forward looking statements.

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

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