GOLDEN CHALICE RESOURCES INC. : http://www.goldenchaliceresources.com/ : QwikReport
Langmuir
Langmuir Property
Location: 35 kilometres south east of Timmins, Ontario Minerals: Nickel Ownership: 100% Golden Chalice Resources
Background
Langmuir Property is accessible by road and is only 30 km south of Xstrata's Timmins Metallurgical Facility that commissioned a nickel circuit in late 2004 to process ore from their Montcalm deposit, over 100 km to the west by road.
The primary exploration target is Kambalda style nickel sulphide mineralization occurring in ultramafic flows and sills. The Langmuir property includes over 30 km of ultramafic and mafic flows and sills favourable for hosting nickel, copper and platinum group mineralization (pgm).
The entire property has been flown by Geotech's state-of-the-art VTEM B-field airborne system. More than 18 separate clusters of airborne EM anomalies have been identified.
The Langmuir nickel discovery was found by drilling one of the anomalies in one of the clusters in early 2007. Many of the other VTEM airborne anomalies and clusters appear on strike with the discovery zone and occur in an arcing trend that wraps around the Shaw Dome. This geological environment bears a striking similarity to Kambalda nickel ore deposits and host rocks that are localized along the flanks of the Kambalda Dome in Western Australia.
Nickel ore deposits in the Kambalda camp often occur in groups or clusters. For example, 12 nickel deposits occur within an ultramafic flow unit of approximately 8 km by 4 km in area. Golden Chalice will drill test all the clusters of airborne anomalies on its Langmuir Property that occur within similar types of ultramafic flows. The ultramafic flow package is over 35 km long and up-to 4 km wide on the Langmuir Property. Therefore, the potential exists on the Langmuir Property to have one or more clusters or groupings of Kambalda style nickel deposits.
Kambalda deposits can be very high grade nickel (+/- Cu, Co, PGE) deposits as exemplified by the type deposits in the western part of Australia. Western Mining Corp. (WMC) was one of the first companies to explore and develop Kambalda nickel deposits in the late 1960's. By the late 1990's, WMC was still mining and reportedly producing up-to 35,000 tonnes of nickel annually from its' Kambalda operations alone. This equates to about 77 million pounds of nickel per year. The current price for nickel is about US$12.50 per pound.
Geology and Mineralization
May 2007 drilling intersected 1.14% nickel over 72.45 metres, including two separate heavily mineralized intervals of 2.23% Nickel (Ni), 0.22% Copper (Cu), 0.20 g/t Platinum (Pt), and 0.50 g/t Palladium (Pd) over 17.50 metres of drill core, and 1.74 % Ni, 0.12% Cu, 0.20 g/t Pt, and 0.47 g/t Pd over 13.10 metres of drill core.
Golden Chalice geologists are currently computer modeling and interpreting the shape and size of the nickel mineralized discovery zone based on drilling to date. The nickel mineralization has been traced for a strike extent of approximately 200 meters and is defined to at least a depth of 250 meters below surface. In addition, nickel mineralization has been intersected at approximately 375 meters vertically below surface on the eastern down plunge extent of the C Zone.
Based upon recent interpretive work, the nickel mineralization displays exceptionally good continuity in the three (A,B,C) nickel zones intersected to date (see cross-section below). Golden Chalice is now drilling from north to south with tighter spaced drilling to validate continuity between drill intercepts and confirm true widths of the mineralization. Drilling will also continue to determine the down plunge extent of mineralization, and near surface projection of the discovery zone to assess the open pit mining potential.
In addition to the drilling, and of significant importance, are the results of recent new modeling done by GCR's geophysicist on the airborne VTEM survey data. The initial assessment of the VTEM survey data resulted in the drilling of the discovery hole in May 2007. The new assessment of the VTEM data, using a proven computer modeling technique, has accurately identified the size of the discovery zone and the potential for similar mineralization at depths below any drilling to date. This modeling software has been successfully employed in the Australian Kambalda mining district for well over a decade by CSIRO and Macquary University, and has been further supported by international mining companies such as Western Mining, BHP and Anglo-American.
The new modeling has detected numerous large conductive bodies at depth that have geophysical signatures similar to the discovery zone. The conductive bodies occur at depths of over 300 meters beneath the discovery zone. They can be traced for over 2 kilometres along strike.
They have never been tested and occur well beneath any drilling to date. One of these deep conductive bodies is currently in the process of being drilled and the stratigraphy intersected at depth to date possesses strong similarities to the rocks hosting the Langmuir nickel discovery. This is the first drill hole to be drilled on these deep seated conductive bodies.
Next Steps
Management is extremely encouraged by the results to date and plan to continue to test the deep conductive targets with two drills as well as continue the exploration of other VTEM anomalies for more nickel mineralized zones on other parts of the Langmuir Property. Many of these anomalies have characteristics (e.g.: orientation, conductance, size) similar to the original Langmuir Nickel Discovery.
Langmuir Property is accessible by road and is only 30 km south of Xstrata's Timmins Metallurgical Facility that commissioned a nickel circuit in late 2004 to process ore from their Montcalm deposit, over 100 km to the west by road.