Golden Chalice Resources Inc.

Golden Chalice Resources Inc.

June 16, 2009 11:36 ET

Golden Chalice Resources Provides Exploration Update on Langmuir Nickel Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 16, 2009) - Golden Chalice Resources (TSX VENTURE:GCR) -

3.14% Ni OVER 10.6 METERS



Golden Chalice Resources (the "Company") is pleased to provide an exploration update for its flagship Langmuir Nickel Project, 35 km southeast of Timmins, Ontario.

Since the initial discovery (72.5 meters of 1.14% nickel) in May of 2007, the Company has made two additional discoveries that further validate the theory of a Kambalda-type district with potential for multiple nickel deposits at Langmuir. This deposit type takes its name from the Kambalda District of Australia, which hosts 36 nickel deposits (and 21 operating mines) that have collectively produced 48 million tonnes at 3.6% nickel and 0.25% copper. The Kambalda nickel mines are localized in a 10 km x 4 km belt within the Kambalda District, with some deposits only 100s of meters apart in areal extent. The land position held by Golden Chalice Resources comprised of komattitic peridotites encircling the Shaw Dome encompasses a land position stretching 30 kilometers.

To view a map showing the Langmuir property in comparison to the Kambalda Dome in Australia click on the following link:

The Company's broader long-term objective is to confirm that Langmuir's Shaw Dome has the potential to become a new nickel camp or district comparable to the Kambalda District of Australia.

Drilling to date at the initial Langmuir discovery zone (W4 Zone) has delineated a potential nickel resource to a vertical depth of 250 meters below surface and along a strike length of about 200 meters.

- Three sub-vertical lenses (the A, B, and C Zones) have been delineated to date within the initial discovery area, now known as the W4 Deposit. Infill drilling during the past year has confirmed the continuity of mineralization within these zones, which extend to surface and are open at depth. The A Zone hosts the bulk of the mineralization. Mineralization at the smaller C Zone has been intersected 375 meters vertically below surface (0.56% nickel over a drilled width of 12.5 meters).

- For Langmuir Nickel Project Maps and Diagrams please click on the following links:W4 3D Model of A, B, and C Zones:

- Recent drill intercepts include 2.75% nickel over a drilled width of 24.4 meters approximately 40 meters vertically below surface and 3.14% nickel over a drilled width of 10.6 meters approximately 115 meters below surface. Infill drilling suggests that true widths vary anywhere from 1.5 to 18.0 meters.

Deeper drilling of the W4 Deposit is required to determine the depth extent of the nickel mineralization. The average overburden depth is approximately 8 meters.

The 2009 drilling program conducted by the Company discovered nickel mineralization approximately 1.5 kilometers east of the W4 Deposit. The W2 Discovery was initially drilled to follow-up combined VTEM conductors and strong MMI nickel anomalies. A third discovery, the W3 VTEM target, occurs about 500 meters east of the W4 Deposit.

- The first drill-hole on the W2 Discovery, GCL09-1, intersected 3.3% nickel over a drilled width of 0.9 meters. Another hole, GCL09-10, drilled 25 meters east of the first hole in the season intersected 0.55% nickel over 20 meters, including 1.72% nickel over a drilled width of 3.0 meters. Although two of these intersections are of narrow widths, they validated the presence of a channel flow horizon hosting economic grades of nickel mineralization. This channel flow horizon appears to have similar characteristics as the flow horizon hosting nickel mineralization in the W4 Deposit.

- While only anomalous to low-grade nickel mineralization occurs in the W3 VTEM target area (up to 0.34% nickel over a drilled width of 2.4 meters including 0.5% nickel over 0.7 meters), the style of nickel mineralization and host rock is also strongly similar to the W4 Deposit. In fact, this style of mineralization occurs ubiquitously throughout the zones comprising the W4 Deposit.

The W2 and W3 VTEM discoveries represent newly defined targets that have yet to be fully tested, with only three drill holes on each location. The W4 Deposit consists predominantly of pyrrhotite and pentlandite mineralization, along with accessory copper, cobalt, platinum and palladium. This is a typical geochemical signature of a Kambalda-style deposit.

Nickel mineralization in the W4 Deposit is hosted within komatiitic peridotites that occur in an arcuate belt wrapped around a granodioritic uplifted intrusive known as the Shaw Dome. Four other significant nickel deposits and mines discovered in the mid-70s north of the Company's recent discovery include the Redstone, McWatters, Hart and Langmuir 1 & 2 deposits. These deposits occur in different aged host rocks and are associated with iron formations, which are believed to be the source of sulphur for the precipitation of nickel sulphides within the komatiitic magmatic melt. The recent W4 Discovery differs in that graphite is associated with the deposit and is thought to be the source of sulphur in this particular nickel deposit.

The geological setting of the Shaw Dome is similar to the Kambalda Dome in Western Australia, which also consists of metamorphosed komatiitic peridotites encircling an up-thrust granodioritic intrusive. Some 36 nickel deposits were discovered within this package of rocks over a 40-year period, typically averaging 0.5 to 2.0 million tonnes, but collectively accounting for 7% of global nickel production. Tightly-spaced drilling programs are often required to find and define these bodies, along with underground exploration in some cases if warranted by positive surface drilling results.

The wholly owned Langmuir Property covers more than 30 kilometers of favorable stratigraphy with potential for hosting Kambalda-style deposits, and encompasses more than 20 clusters of VTEM anomalies that are yet to be adequately drill-tested. MMI geochemical surveys are planned for these areas in order to help find new deposits.

In the next phase of exploration, the Company will focus on the interpretation and potential of the W4 Deposit and conduct additional drilling to determine its down-plunge extent. Drilling is also planned to test the full potential of the two recent nickel discoveries.

The Company is also currently planning exploration work for its Abitibi East Property. The Abitibi East project has seen limited drilling on VMS targets in recent years and follow-up work will be done on VMS targets as well as numerous gold targets.

Peter Caldbick, P.Geo. has reviewed and approved the press release and Kevin Montgomery, P.Geo. is the project supervisor. Mr. Caldbick and Mr. Montgomery are the qualified persons for the purposes of National Instrument 43-101 for the Company's Langmuir Project.

About Golden Chalice

The Company's main focus continues to be its flagship Langmuir Project. 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.

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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