Golden Chalice Resources Inc.

Golden Chalice Resources Inc.

July 08, 2009 09:15 ET

Golden Chalice Resources: Abitibi East Property to Receive $344,694 in Exploration


VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 8, 2009) - Golden Chalice Resources Inc. (TSX VENTURE:GCR) ("GCR") is pleased to announce, subject to regulatory approval, that it has entered into an agreement with Intrinsic Minerals Ltd. ("Intrinsic") to complete drilling and/or other exploration activities on GCR's Abitibi East Property (the 'Property') in Ontario.

The Property is located northeast of Timmins and surrounds Explor Resources' Eastford Lake Gold Project on three sides. GCR recently announced it has commenced early-stage exploration work on the Property and plans to have these new funds used to expand such program, which will include a summer trenching and/or drilling program.

In June of 2008 while testing a 600 meter magnetic low Explor Resources intersected 12.7 g/t gold over 7.5 meters with the lower 4 meters containing visible gold. On February 9, 2009 Explor Resources reported intersecting 142 g/t gold over 3.0 meters and 45.45 g/t gold over 3.3 meters. This area is known as the Lynx Gold Zone and is immediately north of the Property.

Drilling by Explor Resources identified a belt of carbonatized ultramafic and mafic volcanics intruded by a number of porphyries as well as a strong structural trend in the area. It is believed that this structural zone, in combination with these altered porphyries, were crucial in the precipitation of hydrothermal gold bearing fluids that occur within ultramafic intrusives and volcanics.

These same ultramafic intrusives and volcanics trend on to GCR's Property. In addition, porphyry intrusives that are favourable for gold mineralization also trend toward GCR's property. GCR plans to focus gold exploration on an area where the various geological trends intersect on the Abitibi East Property.

To date, limited work has been done by GCR to examine the gold potential of these ultramafic intrusives and volcanics as work has been focused on the Property's Volcanogenic Massive Sulphide ("VMS") potential.

The entire Property has been flown by the VTEM airborne geophysical survey with numerous airborne anomalies and magnetic trends being identified. A program of ground truthing of these VTEM anomalies and reconnaissance mapping is ongoing. In addition, a program of linecutting with Mag-VLF surveys is being undertaken to delineate gold targets along the belt of ultramafics which will be trenched or drilled this summer.

The Agreement requires Intrinsic to incur $344,694 in expenditures on the Property which will qualify as flow-through expenditures. In consideration for the flow-through expenditures by Intrinsic, GCR shall grant Intrinsic a 6% interest in the Property, or such proportionate interest based on the required expenditures, subject to a call/put option whereby GCR will re-acquire that interest.

Pursuant to the Agreement, Intrinsic is required to expend $344,694 in flow-through expenditures prior to September 15, 2009. Upon Intrinsic spending $344,694, either party has the right, at any time, to have GCR acquire Intrinsic's interest in the Property by GCR issuing 2,872,450 units ("GCR Units"). Each GCR Unit will consist of one share of GCR and one warrant (each warrant entitling Intrinsic to acquire an additional share of GCR for a period of 24 months from the date of issue at an exercise price of $0.15 per share during the first 12 months and $0.20 thereafter). In the event Intrinsic fails to expend $344,694 their interest in the Property shall be adjusted proportionately, including the put/call option. Upon exercise of the put/call option GCR shall have an undivided 100% interest in the Property, subject to any existing underlying agreements. A finders fee will be paid subject to regulatory approval.

"This is an exciting new gold discovery for the Timmins Camp. The proximity and structural nature of the discovery makes the Company's Abitibi East Property prime real estate to explore for the possible expansion of the mineralized zone." comments GCR president John Keating.

GCR is in the process of completing a compilation of new and existing data. A map of the Property with trends based on new and previously identified mineralization will be available on GCR's website within the next month.

The contents of this news release have been reviewed and approved by Peter Caldbick, a Qualified Person for the purposes of National Instrument 43-101.

About Intrinsic Minerals Ltd.

Intrinsic Minerals Limited is a private Canadian corporation incorporated in May 2007 for the purpose of acquiring highly prospective mineral properties in Canada. Intrinsic owns a 100% interest in 30 claims known as Simms Ridge in the Humber Zone of the Appalachian Orogen in northern Newfoundland. The Simms Ridge property is the location of a past producing gold mine and surface testing in June 2009 resulted in high gold values including two gold samples assaying in excess of 100,000 ppb. Intrinsic Minerals also owns a 100% interest in a 450 claim prospective nickel property in the Kingurutik area of Northern Labrador.

About Golden Chalice

Along with its Abitibi East Property, the Company's continues to be focused on its flagship Langmuir Project where 2007 drilling intersected 72 meters of 1.14% nickel. The Langmuir Project is easily accessible by road and is near existing mining infrastructure in the Timmins camp, host to numerous world-class gold and base metal deposits. The Company owns 100% of the property which covers more than 30 km of favorable stratigraphy with potential for hosting Kambalda-style deposits.

Golden Chalice has assembled a portfolio of properties in established mining and mineral districts, notably the Abitibi in Ontario, the Bathurst camp in New Brunswick, and a joint-venture project in Nevada.

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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