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Calico Reports Positive Results from 2012 Drilling at Grassy Mountain

VANCOUVER, Jan. 14, 2013 /PRNewswire/ - Calico Resources Corp. (TSX-V: CKB) (the "Company" or "Calico") is pleased to report the following drill results on its Grassy Mountain Project located in southeast Oregon. This hole, CAL 12R17 successfully tested the continuity of mineralization of the grade/geologic model within the higher-grade "boiling horizon" on the western flank of the deposit. The results also expanded the "mineralized envelope" further to the west than previously recognized.

Highlights:

  • 5.67 grams (0.166 opt) gold over 65.5 meters (215 feet), starting at 525 Feet.

Significant Intercepts:

Hole ID From
(feet)
To (feet) Length
(feet)
Au oz/ton Length
(meters)
Au g/tonne
CAL12R17 65 845 780 0.061 237.7 2.008
" 525 740 215 0.166 65.5 5.672
" 525 620 95 0.216 28.96 7.402
" 620 680 60 0.051 18.29 1.734
" 680 725 45 0.235 13.72 8.033

Drill composites were calculated using a cut-off of 0.30 g/t. The composite 65 to 845 feet contains 65 total feet of internal waste (<0.30 g/t exceeding any one10 foot interval). All other composites are devoid of internal waste.

CAL 12R17 was drilled North 80 degrees East at an angle of -60 degrees and was also designed to cut mineralization previously identified in older vertical holes drilled in the 1980's.  The results from CAL 12R17 strongly confirm the continuity of the gold mineralization between the older vertical holes, as well as expands higher-grade mineralization to the west.  Consistency of mineralization between these vertical holes shows there is not a bias in the drilling orientation (i.e. vertical holes vs. northwest or northeast angle holes).  Detailed logging of the holes indicates that the higher-grade gold mineralization in this area of the deposit is more stratigraphically controlled and associated with multiple pulses of geothermal activity rather than with structure.

The continuity and consistency of the gold mineralization is shown by the following comparison of hole CAL 12R17 with the two adjacent vertical holes, 26-056 and 26-106.  The intercepts are shown with elevations given for the tops and bottoms of the higher-grade gold mineralization.

Hole ID Top elev.
(feet)
Bottom elev. (feet) Grade
(opt Au)
Grade
(g/tonne Au)
CAL 12R17 3440 3240 0.166 5.672
26-056 3460 3230 0.132 4.52
26-106 3425 3240 0.140 4.78

Vance Thornsberry, Vice President of Exploration for Calico Resources, stated, "We are extremely pleased with the results of this drilling which continues to confirm our geologic model for the High Grade Underground Deposit.  These results will be incorporated into the resource model as well as be used to guide future drill planning.  Further drilling would be designed to investigate the Bonanza Zone (boiling zone) within the core of the deposit where numerous multi-ounce gold intercepts have been encountered and to look at a possible "feeder structure" beneath the boiling zone."

About Grassy Mountain

Calico has commenced the permitting process for an underground mine and mill facility at Grassy Mountain.  The State of Oregon has accepted Calico's Notice of Intent to develop the project, held several Public Hearings and deemed the Company's Draft Environmental Baseline Study Work Plans sufficient for official review. A Preliminary Economic Assessment is currently being prepared under NI 43-101 standards.

Qualified Person

Michael F. McGinnis, CPG 10914, Calico Resources Project Manager, is the Company's designated Qualified Person for this news release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and has reviewed and validated that the information contained in the release accurate.

On behalf of the Board,

Arden (Buck) Morrow
President and CEO

"Drill intersections are reported as drilled thicknesses. All samples were assayed by ALS Chemex (ISO9001:2008) in Reno, Nevada for gold by Fire Assay of a 30 gram (1 assay ton) charge with an AA finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. QA/QC included the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch."

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Calico Resources Corporation

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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