SOURCE: Golden Chalice Resources Inc.

October 17, 2007 19:24 ET

Porphyry & Warden Properties Acquired and Properties Update

VANCOUVER, BC--(Marketwire - October 17, 2007) - Golden Chalice Resources Inc. (TSX-V: GCR) (PINKSHEETS: GCRIF) is pleased to announce the acquisition of a 100% interest in two properties, as follows, and provide a summary of results for drilling programs earlier this year on a number of properties.


Porphyry Property

The Porphyry Property consists of 12 units and is located in the Kenogaming Township, Porcupine Mining Division approximately 60 kilometres southwest of Timmins, Ontario. Consideration for the Property consists of the payment of $61,000 over a period of 36 months. There is a 3% net smelter return payable, 1/3 (1%) of which may be purchased at any time for $1,000,000. A further 1/3 (1%) may be purchased at any time for an additional $1,000,000.

The property is adjacent to GCR's Timmins West Property. A porphyry intrusive with quartz flooding and sulphide mineralization occurs on the property. The porphyry is adjacent to an iron formation that trends on to the Timmins West property. Exploration targets include porphyry hosted gold mineralization and base metal copper, zinc and silver deposits. The company plans to fly the Porphyry property and part of the Timmins West Property with Geotech's B-field VTEM airborne system to identify targets for trenching and drilling.

Warden Property

The Warden Property consists of 16 units and is located in the Warden Township, Larder Lake Mining Division approximately 80 kilometres northeast of Timmins, Ontario. Consideration for the Property consists of the payment of $120,000 over a period of 36 months. There is a 3% net smelter return payable, 1/3 (1%) of which may be purchased at any time for $1,000,000. A further 1/3 (1%) may be purchased at any time for an additional $1,000,000.

The property is adjacent to GCR's Abitibi East Property. The area is largely covered by overburden and may contain favourable stratigraphy for hosting a volcanogenic massive sulphide mineralization (copper, zinc, silver). The company plans to fly the Porphyry property and part of the Timmins West Property with Geotech's B-field VTEM airborne system to identify targets for trenching and drilling.


Langmuir Property

Assay results have been received for 9 of the 22 holes drilled on strike and to depth on the nickel discovery. A detailed Langmuir property update will be released tomorrow.

Shillington Property

Drilling on the Shillington Property during the Winter and Spring encountered geology similar to rock units described as hosting gold in 1911. An historical report indicates a number of gold silver occurrences were found at the turn of the century, including one report of 1.25 oz/t Au and 20 oz/t Ag over 30 feet at the Lavigne workings. The exact location of the Lavigne workings was not recorded. The gold mineralization is reported to occur within syenites and sediments beneath diabase. The drilling encountered minor chalcopyrite (copper) within hematite altered sediments beneath flat diabase dykes. Other holes intersected numerous silicified and carbonate altered shears zones or breccias within diabase and sediments. One hole also encountered disseminated chalcopyrite within narrow granite dykes cross-cutting sediments. Although some drill sections returned anomalous copper values, gold was not encountered. However, prospecting has discovered quartz stockwork with disseminated chalcopyrite in sediments approximately 4 kilometres south of the drilling. A grab sample returned anomalous copper and gold.

Computer modeling and interpretation of Geotech's airborne magnetic survey data have identified circular ring like structures and possible intrusive like features at depth below 200 metres. If present, the intrusive bodies could be the source of mineralizing fluids that produced the copper breccia zones discovered last year. One breccia zone returned a value of 1.50% Cu over 10.30 metres in drill hole GCSH05-8, including 1.98% Cu over 3.4 metres. Another hole in the same breccia, GCSH05-14 intersected 2.0% Cu over 6.0 metres. In addition, the newly discovered breccia with anomalous copper and gold was discovered in the area of one of the ring structures. GCR is assessing the possibility of testing one of the targets at depth for potential porphyry style copper-gold or IOCG (iron-oxide-copper-gold) mineralization.

Abitibi East Property

On July 17th this year the company announced the discovery, in hole GCAE-07-16, of higher concentrations of zinc, lead, and copper mineralization over greater widths than had been discovered before. Hole 16 intersected 2.00% Zn, 0.55% Pb, and 0.01% Cu over 10.0 metres of core length from 668.0 to 678.0 meters, within a broader intercept of 1.61% Zn, 0.38% Pb, and 0.02% Cu over 20.9 metres from 668.0 to 688.90 meters. Additional recent assays from this drill hole include 7.0 meters of 1.40% Zn, 0.20% Pb and 0.15% Cu from 641.0 to 648.0 meters. The geology and anomalous zinc mineralization intersected in a number of the holes (holes GCAE-07-01 to GCAE-07-15) drilled earlier in the year were used to determine the location of hole GCAE-07-16.

Based on the results, the company attempted to drill a hole above and below GCAE-07-16. Unfortunately, both holes GCAE-07-16A and GCAE-07-16B that were wedged off of hole 16 intersected the mineralized horizon above and up dip of hole 16. Wedge GCAE07-16A returned an intercept of 0.41% Zn, .05% Pb and .02% Cu over 23.10 meters drilled width from 571.0 to 580.20 meters. Another intersection further downhole returned 0.47% Zn, .03% Pb and .09% Cu over 20.20 meters drilled width from 602.80 to 623.0 meters. Wedge GCAE07-16B returned an intercept of 0.47% Zn, .07% Pb and .09% Cu over a drilled width of 12.70 meters from 568.20 to 580.90 meters which included 2.48% Zn and 0.54% Cu over 1.1 meters. A second broader intercept further downhole returned 0.33% Zn, .04% Pb and .17% Cu over 48.30 meters drilled width from 591.0 to 639.30 meters. Drilling to date suggests that the tenor of mineralization improves with depth and thus the potential for a VMS deposit exists both on strike and at depth. Drilling to test along strike and to depth will begin when a drill capable of drilling deeper holes becomes available.

Tower Property

Drilling earlier this year tested an airborne VTEM anomaly near Bathurst, New Brunswick. This new untested anomaly is similar in geophysical signature to VMS deposits of the Bathurst Camp. The drill hole intersected a narrow massive pyrrhotite and pyrite zone with no significant copper, lead or zinc. The geophysics is being reviewed to determine if another hole is warranted.

Cheavers Property

Drilling earlier this year tested numerous airborne VTEM geophysical anomalies that are similar in size and strength to VMS mineralization in the Bathurst zinc-lead-silver mining camp of New Brunswick. Anomalous lead-zinc mineralization was encountered in a number of holes. The cause of the VTEM anomaly could not be explained in some other holes. The geophysics and results are being reviewed to determine if more drilling is warranted.

Senneville Property

Drilling earlier this year intersected a quartz-carbonate altered shear zone with pyrite mineralization in granodiorite similar to structure controlled gold mineralization within the Bourlamaque Batholith of the Val d'Or Mining Camp in Quebec. No significant gold mineralization was encountered. The company has optioned the property to Harricana River Mining Corporation Inc. Under the terms of the agreement Harricana can earn a 50% interest by performing $350,000 in exploration work by March 12, 2007. Harricana can also earn an additional 10% by completing a further $250,000 in exploration work.

Peter Caldbick, P.Geo. is the qualified person for the purposes of National Instrument 43-101 and has reviewed the contents of this news release.

About Golden Chalice

Golden Chalice is well positioned to discover and capitalize on world class gold, silver, copper, nickel, zinc, platinum and palladium deposits. During the last couple of years the Company has strategically accumulated large land packages in existing mining or mineral districts such as the Abitibi in Ontario and the Bathurst Camp in New Brunswick. These properties have existing infrastructure and are often within road access to metallurgical facilities to process mined ores. Details relating to exploration activities on specific properties will be announced during the coming months as the work program is implemented.


On behalf of the Board of Directors

Richard W. Hughes, Chairman

For Further Information Contact:
The Hughes Exploration Group
Phone: (604) 685-2222
visit Golden Chalice's web-site: to see
Smartstox interviews with Company Chairman and President.

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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