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Re: News Releases - Wednesday, May 19, 2010
Golden Chalice Resources Receives NI 43-101 Resource Estimate for
Langmuir W4 Nickel Project
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VANCOUVER, BC - Golden Chalice Resources Inc. (TSX-V: GCR) ("The
Company") is pleased to announce that it has received an independent
mineral resource estimate prepared by SRK Consulting (Canada) Inc.
("SRK") for its wholly owned Langmuir W4 Nickel Deposit in northern
Ontario. The resource estimate statement includes 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 mineral resource statement prepared by SRK is
detailed in Table 1, below.
The Company has also received from SRK a conceptual open pit shell from
which the 'Open Pit' portion of the resource estimate was estimated.
To view a 3D image of the conceptual open pit shell click on the
following link:
http://www.brmstatpack.com/lt/1001/1122/openpit
For a map of the Langmuir project click on the following link:
http://www.brmstatpack.com/lt/1001/1121/langmuir-map
"Given the positive results set forth by SRK, the Company plans to move
forward on a number of fronts, including environmental and
metallurgical studies, which will ideally be completed in conjunction
with a scoping study," quoted Richard Hughes, Company President and
CEO. "The Langmuir project will continue to be the Company's top
priority and we will focus our efforts on expanding this resource as we
advance the project towards production. Ongoing development
possibilities are also being discussed with interested third parties."
This is the first mineral resource estimate for this deposit reported
in accordance with Canadian Securities Administrators National
Instrument 43-101 and was estimated in conformity with generally
accepted CIM "Estimation of Mineral Resource and Mineral Reserves Best
Practices Guidelines". The resource estimate is the result of an
extensive
Diamond drill program (69 drillholes for 22,152 meters)
conducted by Golden Chalice during 2007 and 2008.
Table 1: Mineral Resource Statement(i), Langmuir W4 Nickel Project,
Ontario (May 12, 2010)
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Category Quantity Grade Metal
------------------------------------------------
Tonnes Ni Cu Ni Cu
000't % % lbs 000's lbs 000's
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Open Pit (ii)
Indicated 590,000 0.99 0.06 12,816 840
Inferred 125,000 0.88 0.06 2,437 157
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Underground (ii)
Indicated 87,000 1.04 0.08 1,997 149
Inferred 46,000 0.91 0.05 923 53
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Combined
Indicated 677,000 1.00 0.06 14,813 989
Inferred 171,000 0.89 0.06 3,360 210
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(i) 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.
(ii) 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.
The mineral resources are reported at two cut-off grades to reflect the
"reasonable prospects" for economic extraction. SRK considers most of
the mineral resources are amenable for open pit extraction, while the
portion below a conceptual pit shell could be extracted using an
underground mining method. A complete Technical Report, compiled in
accordance to Canadian Securities Administrators National Instrument
Form 43-101F1 Guidelines, will be filed on Sedar within 45 days of
release of this press release.
RESOURCE ESTIMATION METHODOLOGY:
The mineral resources were estimated using a conventional block
modelling approach constrained by sulphide mineralization wireframes.
The drilling database includes 69 core boreholes and 5,879 sample
intervals with analyses for nickel, copper, cobalt, platinum and
palladium. Variography was undertaken for all metals in all modeled
domains. Nickel, copper, cobalt, platinum and
palladium grades were
estimated into a block model with parent cells cubes 5 metres in size
using ordinary kriging or an inverse distance algorithm. Although
estimated, the value of cobalt, platinum and
palladium are not
significant and are not reported in the mineral resource statement.
The mineral resources were classified as Indicated and Inferred,
primarily based on block distance from the nearest informing composites
and on variography results. Classification is based on nickel data
alone. Mineral resources for the Langmuir W4 deposit were classified
according to the CIM Definition Standards for Mineral Resources and
Mineral Reserves (December 2005) by Sebastien Bernier, P.Geo (OGQ#1034)
and Glen Cole, P.Geo (APGO#1416), appropriate independent qualified
persons for the purpose of National Instrument 43-101. Mr. Bernier and
Mr. Cole have reviewed the technical content of this news release.
The "reasonable prospects for economic extraction" requirement
generally implies that the quantity and grade estimates meet certain
economic thresholds and that the mineral resources are reported at an
appropriate cut-off grade taking into account extraction scenarios and
processing recoveries. In order to meet this requirement, SRK considers
that major portions of the Langmuir W4 nickel mineralization are
amenable for open pit extraction, while deeper portions could be
extracted using an underground mining method. In order to determine the
quantities of material offering "reasonable prospects for economic
extraction" by an open pit, SRK used Whittle software, which evaluates
the profitability of each resource block based on its value.
Optimization parameters were selected based on discussions with Golden
Chalice and benchmarking with similar projects. The reader is cautioned
that the results from the pit optimization are used solely for the
purpose of reporting mineral resources that have "reasonable prospects
for economic extraction" by an open pit and do not represent an attempt
to estimate mineral reserves. SRK considers that the material within
the conceptual pit shell offers reasonable prospects for economic
extraction from an open pit whereas material below the conceptual pit
shell offer reasonable prospects for economic extraction by underground
mining methods.
SENSITIVITY OF MINERAL RESOURCES TO CUT-OFF GRADE
The Langmuir W4 mineral resources are highly sensitive to reporting
cut-off grade. The global quantities and grade estimates in the
Langmuir W4 block model are shown in Table 2 at various nickel cut-off
grades. The reader is cautioned that the figures in this table should
not be misconstrued with Mineral Resource Statement. The figures are
only presented to show the sensitivity of the block model estimates to
the selection of cut-off grade.
Table 2: Global Block Model Quantities and Grade Estimates at various
Cut-off Grades.
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Indicated Inferred
Ni % Cut-off Quantity Grade Quantity Grade
(Tonnes) (Ni %) (Tonnes) (Ni %)
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0.1 1,450,992 0.64 523,193 0.55
0.2 1,343,889 0.68 498,330 0.57
0.3 1,058,749 0.79 422,045 0.62
0.4 861,447 0.89 313,450 0.72
0.5 671,799 1.02 220,845 0.83
0.6 517,942 1.16 151,744 0.97
0.7 415,788 1.28 100,371 1.13
0.8 339,210 1.40 73,716 1.27
0.9 293,747 1.49 54,159 1.42
1.0 246,807 1.59 36,915 1.64
1.1 212,768 1.68 27,302 1.84
1.2 184,438 1.76 22,800 1.98
1.3 184,438 1.76 22,800 1.98
1.4 154,738 1.85 19,081 2.13
1.5 131,694 1.93 17,728 2.18
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Sulphide mineralization at Langmuir W4 has been interpreted by Golden
Chalice as three sub-parallel nickel sulphide zones hosted by
komatiitic peridotite flows. East-west trending komatiite flow units
are vertical to steeply dipping at 70 to 75 degrees display well
developed spinifex tops and are separated by thin graphitic argillite
interflow units. The nickel sulphide mineralization consists primarily
of pentlandite-pyrrhotite occurring as fine disseminations, fracture
fillings, and blebs. Golden Chalice holds a land position of
approximately 20 kilometers long by 5 km wide that encompasses an
arcuate belt of highly prospective peridotitic komatiites situated on
the flank of the Shaw Dome, host to such nickel deposits as the
Redstone and the Langmuir nickel mines. The Shaw Dome shares similar
morphological properties to the Kambalda Dome and the incidence of
several nickel mines in the area confirms the potential for the
discovery of additional nickel deposits.
ABOUT GOLDEN CHALICE
On February 4, 2010 the Company announced it had commissioned a NI
43-101 resource estimate on 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.
Peter Caldbick, P.Geo., and Kevin Montgomery, P.Geo., are the Company's
qualified persons 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 Peter Caldbick.
CONTACT INFORMATION
Corporate Inquiries:
Alan Campbell or Kevin Hull, Investor Relations
Phone: (604) 685-2222
Email: info@goldenchaliceresources.com
Website: www.goldenchaliceresources.com
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
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.
View News Release in PDF Format:
http://www.goldenchaliceresources.com/i/pdf/2010-05-19_NR.pdf
105 KB in size, approx. 21 seconds to download at 56.6Kbps
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Copyright (c) 2010 GOLDEN CHALICE RESOURCES INC. (GCR) All rights
reserved. For more information visit our website at
http://www.goldenchaliceresources.com/ or send
mailto:info@goldenchaliceresources.com
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