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Vancouver August 10, 2011 Calico Resources
Corp. (TSX-V: CKB) (the �Company� or �Calico�) announces that it has officially started the drilling program on Grassy Mountain.�� Calico received final permit
approval on July 15, 2011 from the Oregon Department of Geology &
Mineral Industries (DOGAMI) and the United States Bureau of Land
Management (BLM). �
�We are pleased with the speed with which we
were able to begin drilling and appreciate the efficiency of DOGAMI and
the BLM in processing the permit applications.� said Bill Wagener,
President & CEO.� Drilling
commenced approximately 10 days later than planned and an additional
drill rig will be mobilized in September to ensure that the drill
program will be completed on schedule.
Calico's Phase 1 exploration drilling program includes 14
holes totaling approximately 12,000 feet of diamond drilling and will
be targeting the high-grade underground minable portion of the
resource.�� The Company will be releasing
results over the course of the program.
The Grassy
Mountain Project contains NI 43-101 compliant Indicated resources of
924,000 ounces Au averaging 1.54 g/t (0.045 opt) at a 0.55 g/t (0.016
opt) cutoff and Inferred resources of�
61,000 ounces Au averaging 1.10 g/t (0.032 opt) at a 0.55 g/t
(0.016 opt) cut-off.� A copy of
the NI 43-101 is posted on SEDAR and Calico's website.� The drill program will concentrate on
further defining and expanding the high-grade underground potential at
Grassy Mountain. The high grade zone was previously evaluated by
a historic, non NI 43-10 compliant, pre-feasibility study, titled
"Newmont Grassy Mountain Corporation Pre-Feasibility Study, 1,000 st/d Underground Mine Option, Malheur County
Oregon, Kilborn International Inc., January 1993". (the
"Kilborn Study"). The Kilborn Study identified a high-grade underground
indicated and inferred reserve with an associated 414,600 ounces of
gold, using a 0.1 opt (3.1 g/t) cutoff grade. The study was based
on a 1,000 ton per day underground and mill processing operation.
Average diluted and capped mill feed grade was projected at 0.265 opt
(8.2 g/t).
�
Note that NI
43-101 does not use the terms "indicated and inferred
reserve" or "an associated" and, accordingly, those
terms are not NI 43-101 compliant. The Kilborn
Study pre-dates NI 43-101 and used various terminologies in describing
the resource but given the detail of analysis, cost estimates and other
references in the report it appears that the report was referring to proven
and probable reserves. Calico believes that the estimate in the Kilborn Study was accurate and reliable at the time
of its completion and many of the conclusions remain relevant
today. A qualified person has not done sufficient work to
classify the historical estimate as current mineral resources or
mineral reserves. The Company is not treating the historical
estimate as current mineral resources or mineral reserves and the
historical estimate should not be relied upon. There is no intention
to imply any current economic viability.
Calico is committed to operating in a manner consistent with
�sustainable development� principles.�
The Company is executing a plan to deliver on a strategy
designed to increase shareholder value and is confident that in so
doing, it will benefit the employees, communities and other
stakeholders in the areas in which it operates.
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