2014

Calico Expects Recoveries up to 95% Au at Grassy Mountain

VANCOUVER, Jan. 18, 2012 /PRNewswire/ - Calico Resources Corp. (TSXV: CKB) (OTCQX: CVXHF) (the "Company" or "Calico") reports that Resource Development Incorporated (RDi) has completed its review of the historic metallurgical studies and has concluded that the historic test work indicates that gold recoveries up to 95% are achievable. "The high gold recoveries indicated by the review of the historic studies, coupled with the drill results of high-grade core targeted by the 2011 exploration program are indicative of a project with resilience at a wide range of gold prices" said Bill Wagener, President & CEO.

The key conclusions from the RDi review are that:

  1. A significant portion of gold present in the ore is free milling and gravity recoverable.  The higher the feed grade, the higher the proportion of gold which can be recovered in the gravity process.  Therefore, a gravity concentration process can be incorporated into the grinding circuit.
  2. Preliminary flotation tests did not recover significant amounts of gold in the concentrate. However, technologies have improved over the last two decades and several new reagents have been developed that can float fine free gold.
  3. A cyanidation process can extract gold at a relatively coarse grind with reasonable reagent consumptions.
  4. The ore is generally hard and abrasive and that the least expensive method to achieve the desired grind size will likely be by a three stage crushing circuit followed by ball milling.

The Company is excited by the review of the historic metallurgical test work and is reviewing the additional test work required to finalize the process flow sheet with RDi.

In making its assessment of the historical metallurgical reports RDi reviewed the following studies:

  1. Grassy Mountain Metallurgical Studies, Hazen Research Inc. March 14, 1990.
  2. Gravity Concentrations Studies on the Grassy Mountain Gold Ore, Hazen Research Inc. July 1991.
  3. Grassy Mountain Metallurgical Studies, Golden Sunlight Mines, May 3, 1991.
  4. Grassy Mountain Metallurgical Test Results, Newmont Exploration Inc. December 21, 1993.

About Calico Resources Corp.
Calico's strategy is to create shareholder value by acquiring projects that give the Company a "pipeline" of opportunities ranging from properties with near term production potential and advanced stage exploration projects with significant exploration upside. The Company is actively exploring its Grassy Mountain Project which contains NI 43-101 compliant Indicated resources of 18,657,000 tonnes containing 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 1,722,000 tonnes containing 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 report dated June 6, 2011 is posted on SEDAR and Calico's website www.calicoresources.com

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.

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



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