Calico Resources Reports 1.6 Million Ounce M + I Gold Resource at
Grassy Mountain
VANCOUVER,
Oct. 16, 2012 /CNW/ - Calico
Resources Corp. (TSX-V: CKB, OTCQX: CVXHF)
(The "Company" or "Calico") is pleased to report
an updated mineral resource estimate for the Grassy Mountain
Deposit. This updated mineral resource estimate demonstrates: (1) a
substantial improvement in the quality level (that is, an increase
in the mineral resource category), (2) an increase in the size of
the total mineral resource and (3) a significant upgrade in the
higher-grade portion of the mineral resource at the Grassy Mountain
Gold Deposit.
The updated resource contains 1,416,700 ounces
of gold averaging 1.30 g/t (0.038 opt) in the Measured category and
183,700 ounces averaging 0.56 g/t (0.016 opt) Indicated at a 0.4
g/t (0.012 opt) cutoff. Total Measured plus Indicated is
1,600,400 ounces at a weighted average grade of 1.13 g/t (0.033
opt) at a 0.4 g/t (0.012 opt) cutoff.
Contained within this mineral resource is a
higher-grade portion of the deposit, potentially extractable by
underground mining methods, of 713,400 ounces gold in the Measured
category averaging 9.48 g/t (0.276 opt) and 26,700 ounces of gold
Indicated averaging 8.75 g/t (0.255 opt) at a 2.7 g/t (0.079 opt)
cutoff. Total Measured plus Indicated in the higher-grade portion
is 740,200 ounces gold at a weighted average grade of 9.45 g/t
(0.276 opt) at a 2.7 g/t (0.079 opt) cutoff.
This current mineral resource estimate
incorporates the use of a detailed 3D geologic model.
Utilization of this model allows for a substantial portion of the
resource to be upgraded to the measured category. The
increased understanding of the style of mineralization and geologic
controls supported by the geologic model allowed Gustavson &
Associates, LLC to expand the size of the block model and to
support the continuity of the mineral resource. The 3D geologic
model utilizes drill hole information, field geologic maps, and
geophysical data. Lithologic contacts, alteration boundaries, and
structural zones were modeled to better understand the geologic
controls on the mineralization at Grassy Mountain. The
geologic interpretation is supported by exploration drilling on a
100-foot by 50-foot grid through the center of the resource.
The table below shows the measured, indicated
and inferred mineral resources estimated within the Grassy Mountain
Deposit (effective date of September 26,
2012). Mineral resources are reported using a 0.4 g/t (0.012
opt) gold cut-off-grade. There are discrete higher-grade
zones contained within the resource that can be represented by
using a 2.7 g/t (0.079 opt) gold cut-off-grade.
Grassy Mountain Mineral Resource
Estimate
Cutoff |
Measured |
Au
(g/t) |
Au
(opt) |
Tonnes
(000s) |
Au
g/t |
Au
opt |
Ounces Au
(000s) |
Ag
g/t |
Ag
opt |
Ounces Ag
(000s) |
0.4 |
0.012 |
33,820.8 |
1.30 |
0.038 |
1,416.7 |
3.84 |
0.112 |
4,172.6 |
2.7 |
0.079 |
2,341.4 |
9.48 |
0.276 |
713.4 |
13.01 |
0.379 |
979.5 |
|
|
Indicated |
|
|
Tonnes
(000s) |
Au
g/t |
Au
opt |
Ounces Au
(000s) |
Ag
g/t |
Ag
opt |
Ounces Ag
(000s) |
0.4 |
0.012 |
10,225.5 |
0.56 |
0.016 |
183.7 |
1.97 |
0.057 |
648.0 |
2.7 |
0.079 |
95.1 |
8.75 |
0.255 |
26.7 |
3.84 |
0.112 |
11.7 |
|
|
Measured plus
Indicated |
|
|
Tonnes
(000s) |
Au
g/t |
Au
opt |
Ounces Au
(000s) |
Ag
g/t |
Ag
opt |
Ounces Ag
(000s) |
0.4 |
0.012 |
44,046.3 |
1.13 |
0.033 |
1,600.4 |
3.41 |
0.099 |
4,820.6 |
2.7 |
0.079 |
2,436.4 |
9.45 |
0.276 |
740.2 |
12.65 |
0.369 |
991.2 |
|
|
Inferred |
|
|
Tonnes
(000s) |
Au
g/t |
Au
opt |
Ounces Au
(000s) |
Ag
g/t |
Ag
opt |
Ounces Ag
(000s) |
0.4 |
0.012 |
4,376.5 |
0.50 |
0.015 |
69.8 |
1.83 |
0.053 |
258.0 |
2.7 |
0.079 |
14.7 |
8.75 |
0.255 |
4.1 |
4.57 |
0.133 |
2.2 |
g/t = grams per metric tonne; opt = ounces per short (imperial)
ton
Mineral Resources are not Mineral Reserves
and do not demonstrate economic viability. There is no certainty
that all or any part of the Mineral Resource will be converted to
Mineral Reserves. Quantity and grade are estimates and are rounded
to reflect the fact that the resource estimate is an
approximation.
This updated resource estimation was completed
by Gustavson Associates, LLC ("Gustavson") of Lakewood, Colorado USA (which is independent
of Calico as that term is defined in National Instrument 43-101
("NI 43-101"). An updated NI 43-101 Technical Report incorporating
the updated mineral resource estimates will be posted on SEDAR and
the Company's website within 45 days of this release.
Gustavson visually evaluated relevant assay data
in cross-section, and found that mineralization occurs across
several lithologies in a gradational manner and also as smaller,
higher-grade occurrences. To best accommodate this
mineralization style and the lithologic domains, Gustavson used a
multiple indicator Kriging (MIK) algorithm for resource estimation.
The variography was based on the mean indicator of the gold
grade. Gustavson performed variogram analysis on the data to
define the direction, dip, and range of longest grade continuity.
Gustavson classified the resource based on multiples of the
variogram distance and minimum number of drill holes and samples
required. Measured resources were within 1 variogram distance
(135ft) and required a minimum of 5 samples from at least 3
different drill holes for classification. Indicated resources were
within 2 variogram distances (270ft) and required a minimum of 5
samples from at least 3 different drill holes for classification.
Inferred resources were within 3 variogram distances (405ft) and
required a minimum of 5 samples from at least 3 different drill
holes for classification. The interpretation of the structure and
geophysical data was supported by diamond drilling on 50ft centers
in the center of the deposit to permit the measured classification.
The close drill hole spacing allowed the use of a 3 drill hole
minimum criteria to support this classification.
"We are now able to report gold resources in
the measured category. This is a major step forward toward our goal
of production at Grassy Mountain. The increase of the higher
grade material offers Calico the opportunity to further enhance the
economics of the project. The new resource estimate, combined
with the excellent exploration upside adjoining the proposed mine
site, and within the greater property position at Grassy Mountain
is consistent with Calico's stated business plan. With the
acceptance of the restated NI 43-101, Calico plans to prepare a
Preliminary Economic Assessment under NI 43-101 standards." stated
Buck Morrow, CEO of Calico.
Permitting Status Update:
Calico is currently in the permitting process with the State of Oregon for an underground mine and
mill facility at Grassy Mountain. The Company's "Notice of
Intent" was deemed complete on June 12,
2012 by the Oregon State's
Department of Geology and Mineral Industries ("DOGAMI") and the
"Draft Baseline Study Work Plans" were accepted for review on
September 21, 2012 by DOGAMI.
Calico is pleased with the cooperation of State, Federal and Local
Agencies and the progress that has been made thus far in the
permitting process.
Qualified Persons:
Each of Donald E. Hulse, P.E., Gustavson's Vice President of Mining
and Latin American Business Development and Zachary J. Black, E.I.T. a Gustavson Senior
Geologist, is a Qualified Person as defined in National Instrument
43-101, is independent of Calico, as that term is defined in NI
43-101, and each has reviewed and approved the disclosure
concerning the updated mineral resource estimate in this news
release.
Michael F.
McGinnis, Calico's Project Manager/Exploration, is a
Qualified Person as defined by National Instrument 43-101 is not
independent of Calico, as that term is defined in NI 43-101, and
has reviewed and approved the technical contents of this news
release.
On behalf of the Board,
Arden (Buck) Morrow
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