Calico Resources Corp. - 2012 Exploration Underway at Grassy Mountain

VANCOUVER, May 1, 2012 /PRNewswire/ - Calico Resources Corp. (TSX-V: CKB, OTCQX: CVSHF) is pleased to announce that it has finalized plans for this season's exploration program on the Grassy Mountain Project. Using the Grassy Mountain Deposit as a "discovery model", Calico has designed the 2012 program to test additional gold occurrences on the claim group that exhibit geologic similarities to the Grassy Mountain resource area. The basis of the discovery model includes: positive results from the 2011 drilling program, compilation of extensive historic information, a recently completed (February, 2012) CSAMT (Resistivity) geophysical survey and incorporation of all available information into a 3D geologic model utilizing "Leapfrog" software.

Interpretation of the results from the recent CSAMT geophysical survey identified several important features that are integrated into the 2012 program: "(1) The geophysics delineates numerous areas of sinter and/or silica alteration that correlate with known gold mineralization. By extension, similar anomalies that merit drill testing have been identified outside of the main Grassy Mountain deposit, (2) East-northeast trending structures, which are thought to be a major control of mineralization, are more extensive and stronger than previously thought and the on-strike extension of these structures merits drill testing, and (3) The structure and alteration fit the classic hot springs model."

The targets to be tested include:  Deeper drilling to intersect the "boiling horizon" (higher grade-gold mineralization) in three areas containing surface sinter, and or, pervasive silicification; interpreted structural-controlled "feeder zones" and a potential down-faulted extension in the Grassy Mountain resource area.

"We are extremely pleased with the progress at Grassy Mountain. Development of the geologic model is a major step forward in our pursuit of identifying a new discovery at Grassy. We look forward to drill testing these targets while continuing our exploration of the main deposit." said Vance Thornsberry, Vice President of Exploration for Calico Resources.

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 37,472,000 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.

Qualified Person
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