Chalice Diamond Corp.
TSX VENTURE : COD

Chalice Diamond Corp.

May 06, 2009 13:58 ET

Chalice Diamond Corp. Provides Exploration Overview of Wawa-Chapleau Properties

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 6, 2009) - Chalice Diamond Corp. (TSX VENTURE:COD) (the 'Company') in conjunction with joint venture partners, is continuing its 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. The Company recently completed a review of its numerous exploration targets and projects in the Wawa-Chapleau area and is pleased to provide a brief summary of all prospects slated for further exploration.

Please click on the link:

http://www.chalicediamond.com/i/pdf/2009-05_ChapleauWawa.pdf

for a Wawa-Chapleau area map highlighting the following exploration prospects:

Bird Anomaly

- Large (6 km by 1.5 km) reverse polarity magnetic anomaly target similar to the magnetic response of the ultramafic intrusive hosting the Eagle nickel-copper precious metal deposit

- Iron formation striking into magnetic anomaly could potentially provide source of sulphur for precipitation of nickel sulphides

- Drilling needed to confirm presence of ultramafic intrusive rocks

Old Cabin Gold Project

- Recent samples as high as 211.82 grams/tonne (6.18 oz/ ton) gold

- Historic channel-sample assays as high as 1.18 oz. gold per ton across a width of 5.5 feet.

- Property is favorably situated within a southeast-trending splay/cross-fault off the Goudreau-Lochalsh Deformation Zone, a prolific gold belt

- Summer mapping and sampling program will focus on 13 known vein systems

Rennie Lake Gold Target

- Potential for Hemlo-type mineralization (Hemlo produced over 20 million ounces of gold).

- Targets are Hemlo-style rocks (quartz-sericite schist) with anomalous gold values including 1.32 g/t gold over 0.73 m in historical drilling

- Further surface work will determine next stage of exploration

Stover West Gold Target

- Porphyritic breccia in sheared mafic volcanics with anomalous gold values in quartz veins up to 2.4 g/t

- Channel sampling and possible trenching will be used to further define targets

Geco Targets

- Potential for Geco-type volcanogenic massive sulphide deposit (Geco was a 58 million tonne deposit grading 1.9% copper, 3.45% zinc, and 50 g/t silver)

- Target is a large electromagnetic anomaly with coincidental magnetic signature in metamorphosed volcanosedimentary belt of rocks

VTEM 57

- Large unexplored EM anomaly

- Potential Base Metal target

VTEM 83 - Black Sulphide VMS Target

- Potential volcanogenic massive sulphide (VMS) mineralization (copper and zinc) with gold

- Target area is a large (1 km x 0.5 km area) with numerous electromagnetic (EM) anomalies.

- Prospecting identified anomalous copper and zinc in black sulphides.

- Government sampling identified anomalous gold in stream sediment samples around the large anomaly area

Fletch Kimberlite Dyke

- 6 diamonds recovered

- Has been followed along strike for over 800m, and ground magnetics indicate it continues

- Chemical analysis of kimberlite indicator minerals (KIMs) suggest the dyke has potential to host large diamonds

Corbiere Diamond Prospect:

- 35 diamonds retrieved from 8 kg sample including 5 macrodiamonds

Katy Dyke

- Followed for approximately 50 meters but disappears under lake to the north and into a large round swamp to the south

- Coincident magnetic low situated over this swamp which has potential to be Kimberlite pipe

- Kimberlite dyke forsteritic Olivine with diamond inclusion chemistry, chrome diopside from the Large Diamond overlap zone and plentiful G9 garnets

- Chemical analysis of kimberlite indicator minerals (KIMs) suggest the dyke has potential to host large diamonds

GC1 Kimberlite Dyke

- 16 diamonds recovered

- has been followed along strike for approximately 600 meters

- Chemical analysis of kimberlite indicator minerals (KIMs) suggest the dyke has potential to host large diamonds

All of the kimberlite dykes mentioned are multi-phased and contain mantle xenolith's. Diamonds come from the mantle, therefore having mantle xenoliths combined with the good KIM chemistry increase the potential for diamonds and possibly large diamonds.

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.

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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