Golden Chalice Resources Inc.
TSX VENTURE : GCR

Golden Chalice Resources Inc.

July 06, 2010 13:04 ET

Golden Chalice Resources Posts Langmuir NI 43-101 Mineral Resource Evaluation Report on SEDAR for Public Viewing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 6, 2010) - Golden Chalice Resources Inc. (TSX VENTURE:GCR) ("The Company") is pleased to announce it has posted on SEDAR its recently completed NI 43-101 Mineral Resource Evaluation Report for the W4 deposit at its Langmuir Nickel Project. The report can be found by through SEDAR's website located at www.SEDAR.com. The report was completed by SRK Consulting Inc. of Toronto, Ontario.

EXCERPT FROM EXECUTIVE SUMMARY:

"The characteristics of Langmuir W4 are of sufficient merit to justify undertaking preliminary engineering, environmental and metallurgical studies aimed at completing the characterization of the nickel sulphide mineralization. This would provide a snapshot assessment of the current information base at Langmuir W4, which can provide economic guidelines for future exploration strategies within the Langmuir Property.

The geological setting and character of the nickel sulphide mineralization delineated to date on Langmuir W4 are of sufficient merit to justify additional exploration and development expenditures."

"The W4 deposit represents the highest grade nickel deposit that is amenable to open pit mining methods in the immediate area and it is the Company's full intention to capitalize on this advantage given current metal prices," stated Company President, Steve de Jong. "The completion of the Resource Estimate is a major hurdle for the Company as we begin to assess the development potential of the W4 deposit. It is encouraging to see SRK's recommendations involve metallurgical and environmental testing and that the W4 deposit is of sufficient merit to justify development expenditures."

HIGHLIGHTS FROM THE REPORT INCLUDE:

  • an Indicated mineral resource of 677,000 tonnes at an average grade of 1.00% nickel and an additional 171,000 tonnes at an average grade of 0.89% nickel in the Inferred category, the majority of which is amenable to open-pit mining methods.
  • SRK notes that these mineral resources occupy only a small footprint of the larger Golden Chalice controlled Langmuir Property

The Company has also received from SRK a conceptual open pit shell from which the 'Open Pit' portion of the resource estimate was estimated (page 65 of Report). To view a 3D image of the conceptual open pit shell click on the following link:

http://www.brmstatpack.com/lt/1001/1135/w4-open-pit

The mineral resource statement prepared by SRK is detailed in Table 1, below.

Table 1: Mineral Resource Statement*, Langmuir W4 Nickel Project, Ontario (May 12, 2010)

Category Quantity Grade Metal
  Tonnes Ni Cu Ni Cu
  000't % % lbs 000's lbs 000's
Open Pit**          
Indicated 590,000 0.99 0.06 12,816 840
Inferred 125,000 0.88 0.06 2,437 157
Underground **          
Indicated 87,000 1.04 0.08 1,997 149
Inferred 46,000 0.91 0.05 923 53
Combined          
Indicated 677,000 1.00 0.06 14,813 989
Inferred 171,000 0.89 0.06 3,360 210
 
*Mineral resources are reported in relation to optimized pit shells. Mineral resources are not mineral reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. All assays have been capped where appropriate.
** Open pit mineral resources are reported at a cut-off of 0.40 percent nickel inside a conceptual pit shell. Underground mineral resources are reported at 0.70 percent nickel and include resource blocks above cut-off outside the conceptual pit shell. Cut-off grades are based on a nickel price of US$8 per pound and a metallurgical recovery of eighty-seven percent, without considering revenues from other metals.

Kevin Montgomery, P.Geo., is the Company's qualified person for the purposes of National Instrument 43-101 for the Company's Timmins' area projects. The technical contents of the press release have been reviewed and approved by Kevin Montgomery.

ABOUT GOLDEN CHALICE

On May 19, 2010, the Company announced it had completed a NI 43-101 resource estimate for its flagship Langmuir Nickel 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.

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