GOLDEN CHALICE RESOURCES INC.
FOR IMMEDIATE RELEASE
www.goldenchaliceresources.com
TSXV:
GCR
October 17,
2007
PORPHYRY
& WARDEN PROPERTIES ACQUIRED
and
PROPERTIES
UPDATE
Golden
Chalice Resources Inc. (TSXV: GCR) is pleased to announce the
acquisition of a 100% interest in two properties, as follows, and provide a
summary of results for drilling programs earlier this year on a number of
properties.
PROPERTIES
ACQUIRED:
Porphyry
Property
The
Porphyry Property consists of 12 units and is located in the Kenogaming
Township, Porcupine Mining Division approximately 60 kilometres
southwest of Timmins, Ontario. Consideration for the
Property consists of the payment of $61,000 over a period of 36 months .
There is a 3% net smelter return payable, 1/3 (1%) of which may be
purchased at any time for $1,000,000. A further 1/3 (1%) may be purchased
at any time for an additional $1,000,000.
The
property is adjacent to GCR’s Timmins West Property. A porphyry intrusive
with quartz flooding and sulphide mineralization occurs on the property.
The porphyry is adjacent to an iron formation that trends on to the Timmins
West property. Exploration targets include porphyry hosted gold
mineralization and base metal copper, zinc and silver deposits. The
company plans to fly the Porphyry property and part of the Timmins West
Property with Geotech’s B-field VTEM airborne system to identify targets
for trenching and drilling.
Warden
Property
The
Warden Property consists of 16 units and is located in the Warden Township, Larder
Lake Mining Division approximately 80 kilometres northeast of Timmins, Ontario.
Consideration for the Property consists of the payment of $120,000 over a
period of 36 months. There is a 3% net smelter return payable, 1/3 (1%)
of which may be purchased at any time for $1,000,000. A further 1/3 (1%)
may be purchased at any time for an additional $1,000,000.
The
property is adjacent to GCR’s Abitibi East Property. The area
is largely covered by overburden and may contain favourable stratigraphy for
hosting a volcanogenic massive sulphide mineralization (copper, zinc,
silver). The company plans to fly the Porphyry property and part of the
Timmins West Property with Geotech’s B-field VTEM airborne system to
identify targets for trenching and drilling.
PROPERTIES UPDATE:
Langmuir
Property
Assay
results have been received for 9 of the 22 holes drilled on strike and to depth
on the nickel discovery. A detailed Langmuir property update will be
released tomorrow.
Shillington
Property
Drilling
on the Shillington Property during the Winter and Spring encountered geology
similar to rock units described as hosting gold in 1911. An historical
report indicates a number of gold silver occurrences were found at the turn of
the century, including one report of 1.25 oz/t Au and 20 oz/t Ag over 30 feet
at the Lavigne workings. The exact location of the Lavigne workings was
not recorded. The gold mineralization is reported to occur within
syenites and sediments beneath diabase. The drilling encountered minor
chalcopyrite (copper) within hematite altered sediments beneath flat diabase
dykes. Other holes intersected numerous silicified and carbonate altered
shears zones or breccias within diabase and sediments. One hole also
encountered disseminated chalcopyrite within narrow granite dykes cross-cutting
sediments. Although some drill sections returned anomalous copper values,
gold was not encountered. However, prospecting has discovered quartz
stockwork with disseminated chalcopyrite in sediments approximately 4
kilometres south of the drilling. A grab sample returned anomalous copper
and gold.
Computer
modeling and interpretation of Geotech’s airborne magnetic survey data have
identified circular ring like structures and possible intrusive like features
at depth below 200 metres. If present, the intrusive bodies could be the
source of mineralizing fluids that produced the copper breccia zones discovered
last year. One breccia zone returned a value of 1.50% Cu over
10.30 metres in drill hole GCSH05-8, including 1.98% Cu over 3.4 metres.
Another hole in the same breccia, GCSH05-14 intersected 2.0% Cu over 6.0
metres. In addition, the newly discovered breccia with anomalous
copper and gold was discovered in the area of one of the ring structures.
GCR is assessing the possibility of testing one of the targets at depth for
potential porphyry style copper-gold or IOCG (iron-oxide-copper-gold)
mineralization.
Abitibi
East Property
On
July 17th this year the company announced the discovery, in hole
GCAE-07-16, of higher concentrations of zinc, lead, and copper mineralization
over greater widths than had been discovered before. Hole 16 intersected 2.00%
Zn, 0.55% Pb, and 0.01% Cu over 10.0 metres of core length from 668.0 to
678.0 meters, within a broader intercept of 1.61% Zn, 0.38% Pb, and 0.02% Cu
over 20.9 metres from 668.0 to 688.90 meters. Additional recent assays from
this drill hole include 7.0 meters of 1.40% Zn, 0.20% Pb and 0.15% Cu
from 641.0 to 648.0 meters. The geology and anomalous zinc mineralization
intersected in a number of the holes (holes GCAE-07-01 to GCAE-07-15) drilled
earlier in the year were used to determine the location of hole
GCAE-07-16.
Based
on the results, the company attempted to drill a hole above and below
GCAE-07-16. Unfortunately, both holes GCAE-07-16A and GCAE-07-16B that
were wedged off of hole 16 intersected the mineralized horizon above and up dip
of hole 16. Wedge GCAE07-16A returned an intercept of 0.41% Zn, .05%
Pb and .02% Cu over 23.10 meters drilled width from 571.0 to 580.20 meters.
Another intersection further downhole returned 0.47% Zn, .03% Pb and .09% Cu
over 20.20 meters drilled width from 602.80 to 623.0 meters. Wedge GCAE07-16B
returned an intercept of 0.47% Zn, .07% Pb and .09% Cu over a drilled width
of 12.70 meters from 568.20 to 580.90 meters which included 2.48% Zn and
0.54% Cu over 1.1 meters. A second broader intercept further downhole
returned 0.33% Zn, .04% Pb and .17% Cu over 48.30 meters drilled width
from 591.0 to 639.30 meters. Drilling to date suggests that the tenor of
mineralization improves with depth and thus the potential for a VMS deposit
exists both on strike and at depth. Drilling to test along strike and to
depth will begin when a drill capable of drilling deeper holes becomes
available.
Tower
Property
Drilling
earlier this year tested an airborne VTEM anomaly near Bathurst, New Brunswick.
This new untested anomaly is similar in geophysical signature to VMS deposits
of the Bathurst Camp. The drill hole intersected a narrow massive
pyrrhotite and pyrite zone with no significant copper, lead or zinc. The
geophysics is being reviewed to determine if another hole is warranted.
Cheavers
Property
Drilling
earlier this year tested 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. Anomalous lead- zinc mineralization
was encountered in a number of holes. The cause of the VTEM anomaly
could not be explained in some other holes. The geophysics and results
are being reviewed to determine if more drilling is warranted.
Senneville
Property
Drilling
earlier this year intersected a quartz-carbonate altered shear zone with pyrite
mineralization in granodiorite similar to structure controlled gold
mineralization within the Bourlamaque Batholith of the Val
d’Or Mining Camp in Quebec.
No significant gold mineralization was encountered. The company has
optioned the property to Harricana River Mining Corporation Inc. Under
the terms of the agreement Harricana can earn a 50% interest by performing
$350,000 in exploration work by March 12, 2007. Harricana can also earn an
additional 10% by completing a further $250,000 in exploration work.
Peter
Caldbick, P.Geo. is the qualified person for the purposes of National
Instrument 43-101 and has reviewed the contents of this news release.
About
Golden Chalice
Golden
Chalice is well positioned to discover and capitalize on world class gold,
silver, copper, nickel, zinc, platinum and palladium deposits. During the
last couple of years the Company has strategically accumulated large land
packages in existing mining or mineral districts such as the Abitibi in Ontario and the Bathurst Camp in New Brunswick. These properties have
existing infrastructure and are often within road access to metallurgical
facilities to process mined ores. Details relating to exploration
activities on specific properties will be announced during the coming months as
the work program is implemented.
GOLDEN
CHALICE RESOURCES INC.
On behalf of
the Board of Directors
Richard W.
Hughes, Chairman
For Further
Information Contact: The Hughes Exploration Group
Phone: (604)
685-2222 or visit Golden Chalice’s web-site: www.goldenchaliceresources.com
to see Smartstox interviews with Company Chairman and President.
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.