VANCOUVER, May 3 /CNW/ - Calico Resources Corp. (TSX-V: CKB) (the "Company" or "Calico") is pleased to announce results from a historic 11 hole core drilling program at Grassy Mountain completed in 1993 by Newmont Mining.   This core drilling confirmed the presence of a high-grade feeder zone consisting of gold-bearing quartz-adularia vein swarms localized within a halo of lower-grade gold mineralization.

Calico is utilizing the historic information as a model to design their initial Phase I core drilling program at Grassy Mountain.    Calico's program will consist of in-fill, step out and confirmation drilling targeting the high-grade feeder zone.  The historic core drilling consisted entirely of angle holes drilled perpendicular to the N70E trend of mineralization on four, 200 foot spaced sections.  High-grade gold mineralization extends both East and West of these sections.

Calico's Phase I exploration concept 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 43-101 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 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 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 associate" 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 Kilborn estimate 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.

A map depicting the location, azimuth, inclination and depth of the holes will be posted on Calico's website.

Quality Assurance / Quality Control
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101, and reviewed by the Company's qualified person, Vance V. Thornsberry, P. Geo., Vice President of Exploration for Calico Resources Corp.

On behalf of the Board,

William S. Wagener

President and CEO

Cautionary Statement   
This document contains "forward-looking statements" within the meaning of applicable Canadian securities regulations.  All statements other than statements of historical fact herein, including, without limitation, statements regarding exploration plans and other future plans and objectives, are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate and future events and actual results could differ materially from those anticipated in such statements.  Important factors that could cause actual results to differ materially from our expectations are disclosed in the Company's documents filed from time to time via SEDAR with the Canadian regulatory agencies to whose policies we are bound.

"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."