VANCOUVER, March 30, 2012 /PRNewswire/ - Calico Resources Corp. (TSX-V: CKB, OTCQX: CVXHF) (the "Company" or "Calico") reports that it has filed on SEDAR an independent NI 43-101 technical report outlining the updated resource estimate for its 100% owned Grassy Mountain Project.
"We are pleased to have completed this updated technical report which represents the latest milestone in the development of the Grassy Mountain Project," stated Calico President and CEO Bill Wagener."
The NI 43-101 reports a significant increase in both contained ounces and average gold grade at the Grassy Mountain Deposit. In addition an NI 43-101 compliant silver resource and an NI 43-101 compliant higher-grade component of the gold resource, suitable for underground mining operations, are being reported for the first time - see Table 1 below.
Table 1
| Cutoff Grade | Indicated | Inferred | ||||||||
| g/t | Tonnes (000s) | Au g/t | Au Ounces (000s) | Ag g/t | Ag Ounces (000s) | Tonnes (000s) | Au g/t | Au Ounces (000s) | Ag g/t | Ag Ounces (000s) |
| 0.34 | 37,471.0 | 1.055 | 1,271.3 | 3.4 | 4,139.3 | 15,733.3 | 0.604 | 305.6 | 2.1 | 1,056.5 |
| 0.55 | 20,107.2 | 1.596 | 1,031.5 | 4.9 | 3,137.3 | 3,844.3 | 1.179 | 145.8 | 3.4 | 424.7 |
| 2.06 | 3,195.4 | 5.258 | 540.2 | 9.7 | 999.9 | 302.6 | 6.010 | 58.5 | 10.2 | 99.5 |
Note: The resource calculations capped gold assays at 102 g/t (3 opt) and silver assays at 238 g/t (7 opt). The "Cutoff Grades" shown above were applied only to gold and no cutoff grade was applied to silver. Silver values are the silver associated with the gold at the specified gold cutoff grade.
A higher-grade, NI 43-101 compliant resource, suitable for underground mining operations, was delineated for the first time. Using a 2.06 g/t (0.060 opt) Au cutoff grade the technical report confirms the following:
- Indicated Resources of
- 540,200 ounces Gold
- Contained in 3,195,400 tonnes averaging 5.258 g/t (0.153 opt) Au at a 2.06 g/t (0.060 opt) Au cutoff and,
- 999,900 ounces Silver
- Contained in 3,195,400 tonnes averaging 9.7 g/t (0.283 opt) Ag at a 2.06 g/t (0.060 opt) Au cutoff and,
- Inferred Resources of
- 58,500 ounces Gold
- Contained in 302,600 tonnes averaging 6.010 g/t (0.175 opt) Au at a 2.06 g/t (0.060 opt) Au cutoff and,
- 99,500 ounces Silver
- Contained in 302,600 tonnes averaging 10.2 g/t (0.297 opt) Ag at a 2.06 g/t (0.060 opt) Au cutoff
The delineation of a higher-grade component is an important step forward as this resource is amenable to underground mining operations and mill processing. This approach to the initial mining and milling operations minimizes the footprint of the overall operation and is viewed as a more favorable mining method by the regulatory agencies.
The NI 43-101 technical report authored by Gustavson Associates of Lakewood, Colorado USA is now available to the public on SEDAR and can be accessed through www.sedar.com.
Vance Thornsberry, Calico's Vice President of Exploration, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical contents of this release.
Donald E. Hulse, P.E., Gustavson's Vice President of Mining and Latin America, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical contents of this release.
On behalf of the Board,
William S. Wagener
President and CEO
"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
