Golden Chalice Resources Inc.
TSX VENTURE : GCR

Golden Chalice Resources Inc.

October 05, 2010 09:00 ET

Golden Chalice Resources Announces Drill Plans for Iron Ore Project

- Exploration Program Designed to Upgrade Existing Historic Resource Estimates to NI 43-101 Compliant Status

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 5, 2010) - Golden Chalice Resources Inc. (TSX VENTURE:GCR) ("The Company") is pleased to announce drill plans for its wholly-owned Radio Hill Iron-Ore project, the western extension of the Company's Timmins West property.

The Radio Hill project hosts a number of historic, non-43-101 compliant resource estimates* ranging from 90 – 427 million tonnes of approximately 27% iron. The significant range in tonnage is a result of the different estimates measuring the amount of iron to varying elevation levels, or possible open-pit depths. The existing 90 million tonne historic resource estimate referred to in the recent Radio-Hill 43-101 Property of Merit Report (Company news release July 20, 2010) only took into consideration mineralization for the first 150 meters below surface. Initial drilling is intended to confirm mineralization continues beyond this to a depth of at least 400 meters.

The Property of Merit report was completed by Micon International Inc. ("Micon") and is available on www.sedar.ca. In the report, Micon outlined an exploration program intended to confirm reported mineralization at Radio Hill, test for extensions below the existing zones, validate and expand upon previous metallurgical testing and upgrade the resource estimate to 43-101 compliant standards. The proposed drilling program is the initial step of this program. The potential tonnage and grade are conceptual in nature and it is uncertain if further exploration will delineate a mineral resource. 

"Given the strength in iron-ore prices and the historic size potential of the deposit we are expediting exploration at Radio Hill," commented Company President, Steve de Jong. "Further to this we are pleased to announce that through recent discussions with the Mayor of Timmins, Ontario, we have learned the city has commissioned a team to evaluate the possibility of local, recently decommissioned facilities being used to process iron ore. Although it is too early to speculate on the outcome of this team's report, it is encouraging for the both the Company and the City of Timmins that these steps, which have the potential to add significant value to the Company and its Radio Hill project, are being taken."

The proposed drilling will be the first step of the program, with the initial holes intended to:

  1.  Confirm the depth potential of the iron ore mineralization below the 90 million tonne historic resource and,
  1. Evaluate the high grade iron portion of the iron formation which forms the bulk of the formation.
  1. Evaluate the mineralogy of the deposit.

To view a map of the Company's Radio Hill Iron-Ore project click on the following link:

http://www.brmstatpack.com/lt/1001/1068/radio-hill-pdf

The magnetite rich iron formation forms a topographical high and covers an area over 2 km long with a maximum width of approximately 500 meters. The Radio Hill project is accessible by paved highway and gravel secondary road. The Kukatush railroad siding of the Canadian National Railroad is 3 km along an existing road from the Radio Hill Iron Ore occurrence. Hydroelectric power, water, and natural gas are also available in the area. The property was last worked and explored in the 1960s by Kukatush Mining Corporation. Historic metallurgical tests indicate the potential to produce 63 to 65% iron concentrate.

* The historical estimates contained in this news release are not in accordance with the mineral resources or mineral reserves classifications contained in the CIM Definition Standards on Mineral Resources and Mineral Reserves, as required by National Instrument 43-101 ("NI 43-101"). Accordingly, the Company is not treating these historical estimates as current mineral resources or mineral reserves as defined in NI 43-101 and such historical estimates should not be relied upon. A qualified person has not done sufficient work to date to classify the historical estimates as current mineral resources or mineral reserves. The term "ore" in this release is being used in a descriptive sense for historical accuracy, and is not to be misconstrued as representing current economic viability

Kevin Montgomery, P.Geo., is the qualified person for the purposes of National Instrument 43-101 for the Company's Radio Hill Project. The contents of the press release have been reviewed and approved by Mr. Montgomery.

ABOUT GOLDEN CHALICE

Golden Chalice is an advanced stage exploration company, with offices in Vancouver, British Columbia and Timmins, Ontario. In addition to its Radio Hill iron-ore project it is currently exploring the Langmuir nickel deposit in Ontario, Carlin type gold occurrences in Nevada, volcanogenic massive sulphide deposits in the Bathurst camp in New Brunswick and several gold targets in northern and western Ontario.

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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