Golden Chalice Resources Inc. (TSX VENTURE: 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/1001/1118/pitshell
For a map of the Langmuir project click on the following
link:
http://www.brmstatpack.com/lt/1001/1119/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
----------------------------------------------------------------------------
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.
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Indicated Inferred
Ni % Cut-off Quantity Grade Quantity Grade
(Tonnes) (Ni %) (Tonnes) (Ni %)
----------------------------------------------------------------------------
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.
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.
Contacts: Corporate Inquiries: Golden Chalice Resources Inc.
Alan Campbell Investor Relations (604) 685-2222 Golden Chalice
Resources Inc. Kevin Hull Investor Relations (604) 685-2222
info@goldenchaliceresources.com www.goldenchaliceresources.com
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