Calico's Grassy Mountain Exceeds 1,250,000 ounces Gold and adds 4,100,000 ounces Silver

VANCOUVER, Feb. 14, 2012 /CNW/ - Calico Resources Corp. (TSX-V: CKB, OTCQX: CVXHF) (the "Company" or "Calico") is pleased to report a significant increase in both contained ounces and average gold grade at the Grassy Mountain Deposit. In addition to increasing the gold resource, 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 - see Table 1 below.

"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." said Bill Wagener President & CEO.

The updated resource calculations were completed by Gustavson Associates of Lakewood, Colorado USA. A full NI 43-101 Technical Report will be posted on Sedar and the Company's website within 45 days of this release.

                                                  Table 1

Indicated Inferred
g/t Tonnes
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 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)

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.

Corporate News
Also, the Company would like to announce that it has retained Venture Liquidity Providers Inc. ("VLP") to initiate its Market Making Service to provide assistance in maintaining an orderly trading market for the Company's common shares. The Market Making Service will be undertaken by VLP through a registered broker, W.D. Latimer Co. Limited, in compliance with the guidelines of the TSX Venture Exchange. VLP is a specialized consulting firm based in Toronto providing a variety of services focused on TSX Venture Exchange-listed issuers. In consideration for their services, Calico has agreed to pay VLP $5,000 per month for a period of 12 months. The agreement may be terminated at any time by Calico or VLP. Calico and VLP act at arm's length, and VLP has no present interest, directly or indirectly, in Calico or its securities. The agreement is subject to regulatory approval.

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

For further information:

Terri Anne Welyki
Vice-President of Corporate Development
(604) 681-6855

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