Golden Chalice Resources Inc.
TSX VENTURE : GCR

Golden Chalice Resources Inc.

November 09, 2006 16:42 ET

Golden Chalice Resources: Extended Drilling Season

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 9, 2006) - Golden Chalice Resources (TSX VENTURE:GCR) has extended its drilling program on the Abitibi East and Shillington Projects in addition to the commencement of drilling 7 other prime properties resulting in over 16,000 m of diamond drilling during the next 8 months. Targets range from world class Volcanogenic Massive Sulphide (VMS) deposits (such as the Kidd Creek Mine and Brunswick 12) to Archean Gold and Porphyry Copper-Gold deposits (such as the Timmins, Kirkland Lake, and Val d'Or gold Camps).

The properties are located in Ontario, Quebec, and New Brunswick, Canada. They are all accessible by road, close to power sources, and proximal to a readily available, experienced labour force. Milling and/or smelting and refining facilities are within a half hour or a few hours drive of all the properties. The following is a summary of the drilling programmes that will begin over the coming months.

Shillington Property - Drilling will commence this week to test Porphyry copper-gold mineral potential within the Round Lake Batholith of Ontario. Drilling during 2005 intersected what may become a new type of mineralization for Ontario. Copper (Cu) mineralization within a quartz breccia system was intersected in hematitic and potassic altered proterozoic aged arenites. Intersections include 1.50% Cu over 10.30 metres and 2.0% Cu over 6.0 metres of drill core length. The zone has been traced with drilling over a strike length of 200 meters and remains open both on strike and at depth. Recent IP surveys show the zone as a significant chargeability/resistivity anomaly for 500m and still open on strike.

This new discovery occurs within an area underlain by the Round Lake Batholith that has received limited exploration over the past century. Early reports by prospectors at the turn of the century have indicated a number of gold silver occurrences including one report of 1.25 oz/t Au and 20 oz/t Ag over 30 feet. In addition, recent airborne VTEM surveys flown by Geotech have delineated magnetic anomalies and features which may indicate the potential for copper-gold style mineralization associated with syenitic-granitic porphyry intrusives at depth.

Tower Property - Drilling will start this week to explore a recently discovered airborne VTEM anomaly near Bathurst, New Brunswick. This new untested anomaly is similar in geophysical signature to VMS deposits of the Bathurst Camp. The 150 million ton Brunswick #12 mine which has been in production since the 1960's is the areas largest producer in the Bathurst camp and one of the world's largest volcanogenic zinc-lead-silver deposits.

Senneville Property - Drilling is planned to commence this week for structure controlled gold mineralization within the Bourlamaque Batholith of the Val d'Or Mining Camp in Quebec. This intrusive hosted potential gold mineralization is similar to the Belmoral Mine, the Brad'Or Mine, the Dor Val Mine, the Perron Mine, the Sullivan Mine and the Siscoe Mine in the Val d'Or area.

Abitibi East Property - Drilling will commence next week to explore for VMS zinc-copper-silver mineralization similar to the Kidd Creek Deposit in Ontario. The property is located approximately 85 kilometres east of the Kidd Creek Mine (117,547,000 tonnes @ 2.2% copper 7.25% zinc, 0.28% lead and 147.43 g/t silver).

Recent drilling continued to encounter anomalous zinc, copper and lead sulphide mineralization across significant widths of chlorite, sericite, silica, and/or carbonate altered felsic and mafic volcanics. Drill intercepts are thought to represent a halo of alteration and mineralization that occurs proximal to volcanic vents where massive sulphides similar to the Kidd Creek mine would be deposited. Widely spaced drilling to date has identified almost 6 kilometres of strike length of favourable stratigraphy. The next phase of drilling will vector in on massive sulphides by systematically drilling shallow holes along the width of the basin to identify areas with increased mineralization and alteration that would be proximal to a vent. A series of deeper holes will then be drilled in areas where sulphide mineralization and alteration is greatest. Down hole geophysics can also be used to test further at depth and along strike of the drilling to help locate a deposit.

Cheavers Property - Drilling will start within a week to test numerous airborne VTEM geophysical anomalies that are similar in size and strength to VMS mineralization in the Bathurst zinc-lead-silver mining camp of New Brunswick.

Stream sediment samples from the property have defined numerous unexplained geochemical anomalies with multiple values in excess of 10,000 ppm Zinc, along with strongly anomalous Copper, Lead and Silver. Historical exploration from the 1960's and 1980's intersected narrow zones of copper-lead-zinc-silver mineralization including 2.9% copper, 0.35% lead, 10.7% zinc and 288 grams silver over a core length of 1.5 metres.

A recent helicopter borne Geotech VTEM survey has defined three distinct zones with multiple untested electromagnetic (EM) anomalies. The EM zones are all associated with anomalous soil and stream sediment geochemistry.

Portage Property - Drilling to test a series of newly discovered VTEM airborne anomalies along strike with the Restigouche mine, or located within stratigraphy similar to the Brunswick 12 deposit is planned to begin following the Cheavers drill programme. The Bathurst base metal mining district is host to over forty-five volcanogenic massive sulfide deposits including the world class Brunswick #12 zinc, silver, lead copper deposit (150 million tonnes of ore grading approximately 12% Zn, 3,5% Pb, 3 oz. Ag, and 0.4% Cu/ton).

Carboniferous Properties - Three separate properties with potential to host a Brunswick 12 deposit are planned to be drilled after the Portage Property or during the 1st quarter of 2007.

It has long been recognized that the least explored portion of the Bathurst mining district is situated to the east of the Brunswick #12 Mine and extends under a flat dipping Carboniferous basin comprised of sedimentary rocks. Until recently, tools were not available for search at depth beneath the Carboniferous rocks. However, more sophisticated airborne surveys such as the VTEM system can reportedly penetrate the flat lying carboniferous aged rocks to look below for deposits in the favourable Brunswick 12 type stratigraphy.

Drilling is planned to test newly discovered deep VTEM airborne anomalies on the 3 Carboniferous properties. These untested anomalies could represent VMS deposits similar to the Brunswick 12.

Langmuir Property - Drilling is planned to commence during the 1st quarter of 2007 to test for Nickel-Copper-Platinum Group metals on the property that is 35 km south of the Kidd Creek Metallurgical Complex. The Kidd Creek Complex commissioned a nickel milling circuit in 2005 to process ore from the Montcalm deposit some 85 km west of Timmins.

Drilling by GCR during 2005 intersected ultramafic flows and sills favourable for hosting Kambalda style nickel sulphide deposits. These deposits represent attractive exploration targets as they can be very high grade in nickel (+/- Copper, Cobalt, Platinum, Palladium). Kambalda nickel deposits were first discovered at the Alexo open pit mine approximately 45 kilometers northeast of Timmins in 1907. A more recent example of a similar type of deposit is Canadian Royalty's Mesamax deposit in northern Quebec (quoted reserves 1,840,000 tonnes of 2.1% Ni, 2.6% Cu, and 5.0 g/t PGE).

Drilling will test numerous EM and magnetic anomalies that have been discovered by a Geotech VTEM airborne survey that was flown over the property. These new untested anomalies may represent potential nickel-copper massive sulphide deposits.

Timmins West - Drilling and trenching are planned to commence prior to the end of the 2nd quarter in 2007. Drill targets include highly prospective geology with significant base metal, precious metal, and diamond potential. The property is 100% owned by GCR and is only about 80 km by road southwest of Timmins, Ontario.

A Geotech VTEM airborne survey has outlined exceptional electromagnetic and magnetic targets in areas with favourable geology and structures for hosting Kidd Creek style massive sulphides, Timmins and Kirkland Lake vein and porphyry hosted gold deposits, and nickel deposits in ultramafic sills and flows. This relatively new airborne technology can identify exploration targets near surface and at depths of over 300 metres. Special processing of the geophysical data has also discovered numerous circular magnetic features that occur at surface and continue to depth. This type of anomaly is similar to the geophysical signature of kimberlite pipes that could host diamonds.

The sizable land package also covers the entire nose of a major regional fold structure with ultramafic and mafic volcanics, sedimentary rocks, and felsic porphyries analogous in geology and structure to that of the Timmins gold camp. The Timmins camp has produced more than 60 million ounces of gold.

CHALICE DIAMONDS CORP. - In addition to drilling the 9 properties described above, GCR is in the process of separating its Chapleau diamond exploration property assets to form a new company called Chalice Diamonds Corp. GCR Shareholders will retain all their shares in GCR and receive 1 share of the new company for each 3 shares they own of GCR.

Chalice Diamonds will have the largest land package (over 200,000 acres) in the Chapleau and Wawa area of Ontario. The ground has been staked or leased based on compilation work that has identified favourable geology, geophysics, and geochemistry for kimberlite targets.

The Company has facilitated this initiative by acquiring much of this ground in conjunction with the following companies: Klondike Gold Corp., Amador Gold Corp., Abitibi Mining Corp., Sedex Mining Corp., Kalahari Resources Inc. and Kootenay Gold Corp.

Golden Chalice currently has a team of geologists, geophysical, and geochemical technicians "ground truthing" circular airborne magnetic anomalies to determine their potential to be diamond bearing kimberlite pipes. Drilling is planned to commence in the 1st quarter of 2007 after the new company has been formed.

Many of the circular magnetic anomalies occur on strike with a diamond bearing kimberlite dyke (GC1) and are often associated with lowland areas or circular lakes. Kimberlite pipes are frequently found in lowland areas or under lakes because they usually weather more easily than other rocks. Glaciation and erosion remove the softer weathered surficial part of the kimberlite leaving a topographical depression such as a lake.

Samples taken from the GC1 kimberlite dyke confirmed the presence of kimberlite indicator minerals derived from the diamond stability field in the mantle of the earth. A news release by Canalaska Ventures Ltd., dated April 19, 2001 first reported the dyke as a Type II kimberlite or orangeite and caustic fusion analysis returned one large macrodiamond measuring 1.64mm x 1.55mm x 0.62mm. A recent stripping program has further confirmed the dyke is over 150 meters long, open in both directions, and strikes oblique to east-west with a subvertical dip to the south. The surface expression of this dyke is approximately 1.0 to 1.5 meters in width and typical of kimberlite dykes which are known to flare out at depth or become circular pipe shaped bodies along strike when they intersect cross cutting structures.

Analyses of five grab samples weighing 20 kilograms derived from the GC1 kimberlite dyke confirmed the presence of kimberlite indicator minerals. More than 200 indicator minerals were recovered through heavy liquid separation and selected by True North Mineral Laboratories, in Timmins, for SEM and microprobe analysis at C.F. Mineral Research Ltd., in Kelowna. Electron microprobe analysis confirmed 36 olivines with diamond inclusion composition, 5 G9 garnets, 8 chromites and 36 chrome diopsides. One olivine candidate and a chrome diopside candidate were categorized as being associated with large diamonds and further confirm the Canalaska press release.

Golden Chalice Resources Inc. is a national Canadian mining exploration company that seeks to find mineable mineralization in Ontario, New Brunswick, Quebec, British Columbia, Yukon and Nevada. Creative geological interpretations along with the latest in geophysical and geochemical surveys give this aggressive company a full range of prospects that may host gold, silver, platinum group metals, nickel, copper and diamonds. The Company's portfolio of properties provide shareholders good diversification in a number of jurisdictions with different targets within a single company.

GOLDEN CHALICE RESOURCES INC.

On behalf of the Board of Directors

Richard Hughes, Chairman

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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.

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