Chalice Diamond Corp.
TSX VENTURE : COD

Chalice Diamond Corp.

May 07, 2009 12:16 ET

Chalice Diamond Corp. Commences Drilling on 6 km Bird Anomaly

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 7, 2009) - Chalice Diamond Corp. (TSX VENTURE:COD) (the 'Company') is pleased to announce it is commencing drilling on the Bird property located approximately 43 kilometers northeast of Wawa, Ontario with the intention of testing a large potential nickel-copper-PGE target on its 100% owned Bird reverse polarity airborne anomaly. This is the first drill program undertaken by the Company.

The Bird target is centered over Swanson Lake and has a very strong reverse magnetic polarity signature. Two airborne VTEM geophysical surveys have outlined three magnetic nodes or areas of greatest magnetic intensity. The 'Western', 'Lake' and 'Eastern' nodes extend over a distance of 6 km with a width of 1.5 km.

The large area encompassed by the reverse magnetic anomaly is underlain by mafic and ultramafic rocks, including peridotite. The cause of the reverse magnetic signature is not apparent on surface, but it is believed to be a result of a near surface magmatic intrusion.

"One important objective of this program is to confirm the presence of ultramafic intrusive rocks within the anomaly which are similar to those hosting the Eagle deposit. This first phase of drilling will target coincidental MMI and magnetic anomalies to identify potential areas of nickel-copper-PGE mineralization." comments Company President, John Keating.

The first two drill set-ups are located on the perimeter of a swamp therefore accessibility is no longer a consideration for drilling in this particular area.

To view a map of the Bird Anomaly click here:

http://www.chalicediamond.com/i/pdf/BirdMagneticmapv2.pdf

The MMI geochemical orientation survey ran one line the length of the anomaly and two shorter lines crossing the anomaly. The MMI signature was found to be consistent with a mafic or ultramafic intrusive. The three magnetic nodes coincided with the best MMI values for copper and nickel. Copper, lead and zinc anomalies coincided with the 'Lake' and 'Eastern' nodes.

Further to the MMI signature is the presence of an iron formation striking into the magnetic anomaly which could potentially provide a source of sulphur for the precipitation of nickel sulphides.

The magnetic response of the target is similar to, but much larger than the magnetic response of the rocks hosting the Eagle nickel-copper precious metal deposit being advanced in nearby northern Michigan by Kennecott Minerals Co.

The Eagle deposit is a high-grade magmatic sulphide deposit containing nickel and copper mineralization with associated cobalt, platinum, palladium and gold. It has a published geologic resource of 4.05 million tonnes with an average grade of 3.57% Ni, 2.91% Cu, 0.10% Co, 0.28 g/t Au, 0.73 g/t Pt and 0.47 g/t Pd. The deposit is hosted in a peridotite intrusion that is unique because of its reverse magnetic polarity.

Drilling of this area has been the Company's long term goal, which is now being realized. The latest scientific methods available in exploration have been utilized to identify targets with the highest potential to advance this exploration project. Future updates will be forthcoming as work advances on this large potential nickel-copper-PGE property.

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 Chapleau-Wawa Project.

About Chalice Diamond

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 and President and CEO John Keating.

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