Calico’s Grassy Mountain PEA Shows ‘Excellent Economic Opportunity’

Calico Resources Corp. (TSXV:CKB) announced the results of a preliminary economic assessment( PEA) for its Grassy Mountain gold-silver project, located in Oregon. According to the company, the report indicates that the project “represents an excellent economic opportunity in the current gold price environment.”

As quoted in the press release:

MMC has concluded that the most attractive development scenario for the Grassy Mountain Project consists of an underground mining operation with a processing plant handling mineralized material, producing a gold-silver doré. A milling base case scenario was developed for the Grassy Mountain Project with production of 365,000 tons per year, resulting in a projected nine year operation with estimated average annual production of 53,000 ounces of gold and 82,000 ounces of silver. Projected life of mine average cash operating costs are US$578 per ounce of gold recovered, net of silver byproduct credits.  Start-up capital costs for this project scenario are projected to be US$119.6 million plus sustaining capital of $24.1 million.  The total cost of gold production (including cash operating costs and total capital and contingency costs over the life of the mine) is estimated at US$880 per ounce.

Paul Parisotto, president and CEO of Calico, commented:

We now have an important input required to move forward with our strategy for Calico.  We believe that this PEA demonstrates that the Grassy Mountain Project represents an attractive development option for gold producers in part due to moderate estimated start-up capital requirements and low operating costs.  Unlike most other PEAs, this study is based on measured and indicated resources only, which we think makes it more reliable than studies which depend on inferred resources.  Furthermore, MMC has confirmed that the exploration potential at the Grassy Mountain Project is highly favorable for expanding the resources available to the underground operation envisioned in the PEA.

Click here to read the full Calico Resources Corp. (TSXV:CKB) press release.