SOURCE: Golden Chalice Resources Inc.

May 16, 2007 08:00 ET

Golden Chalice Intersects 1.14% Nickel Over 72.50 Meters

VANCOUVER, BC -- (MARKET WIRE) -- May 16, 2007 -- Golden Chalice Resources Inc. (TSX-V: GCR) (PINKSHEETS: GCRIF) is pleased to announce the drill hole intersection of 1.14% Nickel over 72.50 metres, including two separate heavily mineralized intervals of 2.23% Nickel (Ni), 0.22% Copper (Cu), 0.20 g/t Platinum (Pt), and 0.50 g/t Palladium (Pd) over 17.50 metres of drill core, and 1.74 % Ni, 0.12% Cu, 0.20 g/t Pt, and 0.47 g/t Pd over 13.10 metres of drill core.

This intersection is from drill hole GCL07-6 recently completed on the Company's 100% owned Langmuir Property (see table below) and is the first hole drilled to test a cluster of 4 airborne VTEM anomalies on the property. The Langmuir Property is located about 35 km south of Xstrata's Kidd Creek Metallurgical site in Timmins, Ontario. The Kidd Creek site has a nickel circuit for concentrating ore from Xstrata's Montcalm nickel mine located over 90 km west of Timmins.

The Langmuir property includes over 20 km of ultramafic and mafic flows and sills favourable for hosting nickel, copper and platinum group mineralization (pgm). Less than 50% of this favourable stratigraphy has been flown by the VTEM airborne system with 18 separate clusters of airborne EM anomalies being identified. The current first phase of drilling is designed to test each cluster which are largely covered by overburden or swamp.

Hole GCL07-06 was drilled to test a linear trending cluster of airborne EM anomalies that occur across 4 flight lines, spaced 75 metres apart. Two additional EM anomalies are on strike, but slightly offset from the others. The hole was oriented to drill across the EM trend along the flight line azimuth of 325 degrees with a dip angle of -55 degrees.

The drill hole intersected a strongly mineralized nickel, copper, and pgm zone occurring within an altered peridotitic komatiitic flow. Nickel mineralization is associated with disseminated, fracture filling, and blebs of sulphides throughout the 72.50 metre core length. Higher values of up to 5.7% nickel occur when sulphide concentrations increase to 30 or 35%. The following table displays weighted average summaries for the mineralized intersection. True width of the zone is not known at this time.

Table of preliminary results for drill hole GCL-07-06

                              Core
                              Length                                   Pd
           From(m)   To(m)    (m)    Ni(%)   Cu(%)   Co(%)   Pt(g/t)  (g/t)
           -------   -----    ---    -----   -----   -----   -------  -----
Zone       99.50     172.00   72.50  1.14    0.08    0.02    0.11      0.26

including  116.90    130.00   13.10  1.74    0.12    0.02    0.20      0.47

and        149.50    167.00   17.50  2.23    0.22    0.04    0.20      0.50

Bore-hole geophysics (downhole pulse EM) is to be completed on all holes including GCL07-6. This will provide additional interpretive data for the next phase of drilling which will test this new nickel discovery and any other mineralization intersected during the first phase of drilling.

A rigorous quality assurance program is employed which includes the insertion of standards and blanks for each batch of samples. Samples of the NQ size drill core are sawed in half, with one-half sent to a commercial laboratory, Expert Laboratory of Rouyn-Noranda, Quebec, and the other half retained for future reference. Core samples are routinely analyzed for nickel, copper and cobalt by aqua regia digestion with atomic absorption techniques. Any analyses greater than 10,000 ppm are re-analyzed using total acid digestion and atomic absorption techniques. Check analyses utilizing another assay laboratory are also being done.

Peter Caldbick, P.Geo., and Kevin Montgomery, P.Geo. are the qualified people for the purposes of National Instrument 43-101 for the Company's Langmuir Project. Project supervision is by Kevin Montgomery and the contents of the press release have been reviewed and approved by Peter Caldbick.

About Golden Chalice

Golden Chalice is well positioned to discover and capitalize on world class gold, silver, copper, nickel, zinc, platinum, palladium and diamond 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 in 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.

GOLDEN CHALICE RESOURCES INC.
On behalf of the Board of Directors
Richard Hughes, Chairman
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.

Contact Information

  • For Further Information Contact:

    Richard Hughes
    Phone: (604) 685-2222
    or visit Golden Chalice's website: www.goldenchaliceresources.com to see
    Smartstox interview with Company Chairman and President.

    GOLDEN CHALICE RESOURCES INC.
    711 - 675 West Hastings Street
    Vancouver, B.C.
    V6B 1N2
    Phone: (604) 685-2222
    Fax: (604) 685-3764
    www.goldenchaliceresources.com