Chalice Diamond Corp.
TSX VENTURE : COD

Chalice Diamond Corp.

June 05, 2009 13:19 ET

Chalice Diamond Corp. Increases Land Position & Provides Bird Drilling Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 5, 2009) - Chalice Diamond Corp. (TSX VENTURE:COD) (the 'Company') has staked a 9 unit claim southwest of the Old Cabin property, which recently returned a grab sample of 211.82 grams/tonne Au. The Goudreau Anticline which is the focus of a series of independent gold bearing quartz vein systems trends onto this claim. Reconnaissance work has already established a number of historic trenches on the claim.

These historic trenches will be investigated and sampled with additional prospecting in the area. As well, VLF ground surveys will be initiated to help map out any structural trends which could be potential sites for the deposition of gold bearing fluids.

The Goudreau Anticline splays off of the Goudreau Lochalsh Deformation Zone, which hosts a number of gold mines. Fold axes in large scale dilatant fold structures associated with anticlines can be preferential sites for the development of major shear structures. These shear structures are often host to gold-bearing quartz vein systems. Historically, gold mineralization on the property has been described as occurring in a series of stacked en-echelon east-west trending quartz lenses and stringers relegated to shear zones which trend from northeast to southwest.

Drilling on the Bird reverse polarity anomaly has produced encouraging results thus far. The first two drill holes encountered widespread alteration within porphyries containing molybdenum and sheared mafic metavolcanics with abundant carbonate, potassic, silicification and magnetite alteration. The widespread alteration and silicification may be indicative of metasomatism from a deeper seated source. The fourth drill hole is scheduled to test the center negative node, or strongest anomaly, within the reverse polarity.

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 & 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.

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