VANCOUVER, May 29, 2012 /PRNewswire/ - Calico Resources Corp. (TSX-V: CKB, OTCQX: CVXHF) (the "Company" or "Calico") wishes to announce that upon review of its project portfolio and upcoming option payment obligations, it has determined that it will not proceed with any further exploration on the Iron Lake Property, which is located 45 kilometers northeast of the city of 100 Mile House, British Columbia. Calico had a right to earn a 60% interest in Iron Lake.
Calico has therefore agreed with Eastfield Resources Ltd. (the vendor) to return the property to Eastfield for no consideration to either party. Under the terms of the option agreement, Calico had not earned any interest in the Iron Lake Property. Calico will reflect an exploration asset write down on the property in its next financial statements.
The Company intends to focus all its resources and efforts solely on advancing the Grassy Mountain Project.
Buck Morrow CEO stated, "Calico is committed to the exploration and development of the Grassy Mountain Project and plans to focus its team's efforts and company funds to that end. The 2012 exploration drilling is due to begin in mid-June to test four target areas on the property."
About Grassy Mountain
The Grassy Mountain Project contains NI 43-101 compliant (see March 29, 2012 Technical Report) Indicated resources of 1,271,300 ounces of Au in 37,471,000 tonnes averaging 1.055 g/t at a 0.34 g/t cutoff and Inferred resources of 305,600 ounces of Au in 15,733,300 tonnes averaging 0.604 g/t at a 0.34 g/t cutoff. Contained in the resource above, is a higher grade NI 43-101 compliant resource suitable for underground mining with Indicated resources of 540,200 ounces Au in 3,195,400 tonnes averaging 5.258 g/t at a 2.06 g/t cutoff and Inferred resources of 58,500 ounces Au in 302,600 tonnes averaging 6.010 g/t at a 2.06 g/t cutoff.
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,
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