Significant Increase in Contained Ounces and Average Gold Grade at Grassy Mountain

Calico Resources Corp. (TSXV:CKB, OTCQX:CVXHF) announced a significant increase in both contained ounces and average gold grade at the Grassy Mountain Deposit: 1,250,000 ounces gold and 4,100,000 ounces silver – a NI 43-101 compliant silver resource and a NI 43-101 compliant higher-grade component of the gold resource, suitable for underground mining operations, are being reported for the first time.

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 June 2011 Technical Report reported only gold resources and utilized a 0.55 g/t (0.02 opt) Au cutoff based on historically lower gold prices than presently exist. Using the same 0.55 g/t (0.02 opt) Au cutoff grade, the updated resource report:

• Added Indicated gold ounces of 107,500 and increased the average Indicated grade from 1.51 g/t (0.044 opt) Au to 1.596 g/t (0.047 opt) Au
• Added Inferred gold ounces of 84,800 ounces and increased the Inferred grade from 1.10 g/t (0.032 opt) Au to 1.179 g/t (0.034 opt)

Calico President & CEO, Bill Wagener, said:

“The gold resource has increased significantly over the June 2011 resource report and the addition of a NI 43-101 compliant silver resource should enhance the project economics. We are extremely pleased with the growth of the Grassy Mountain resource resulting from the 2011 exploration program. We believe these results confirm that there remains significant upside potential to continue to grow the Grassy Mountain resource. Calico looks forward to initiating the 2012 exploration program designed to increase resources and evaluate several of the nearby targets that lie within the current property position.”

Click here to read the Calico Resources (TSXV:,CKB) press release
Click here to see the Calico Resources (TSXV:,CKB) profile.