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Oregon Miner Shares Jump on Drilling Report
By: AllPennyStocks.com News
November 15, 2011
The reasons for a mineral property being explored and then left behind vary dramatically. Some companies go broke and can’t fund any further exploration. Sometimes, the findings aren’t deemed significant enough for economic feasibility. Gold prices have obviously rocketed upward in the last decade. The beauty of it for miners and mining investors is that even with gold’s fluctuation in price, its price point is high enough now that it can be mined at significantly greater profit margins than before. As such, many properties that underwent exploration in days gone by are now viable options today for exploration and mining endeavors.
Oregon is home to significant gold claims and, although not receiving the acclaim of its southern counterpart, Nevada, has boasted some true doozies as far as gold nuggets. Over the years, an 18 ounce nugget, a 40 ounce nugget and an absolutely amazing 17 pound nugget have been found in Oregon (the 17-pounder would carry a value in excess of $400,000 today). Now, the odds of ever finding another multi-pound nugget may be slim-to-none, but Calico Resources Corp. (TSX-Venture:CKB) is on the hunt. The company’s principle project is the Grassy Mountain Project, south of Vale, Oregon. The Company is actively exploring the project which contains NI 43- 101 compliant Indicated resources of 18,657,000 tonnes containing 924,000 ounces gold 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 gold averaging 1.10 g/t (0.032 opt) at a 0.55 g/t (0.016 opt) cut-off. Seabridge Gold (TSX:SEA) entered into an agreement in April 2011 in which Calico can acquire a 100% interest in the Grassy Mountain Project.
The high grade zone at Grassy Mountain was previously evaluated by a historic, non-NI 43-10 compliant, pre-feasibility study by Kilborn in 1993. The Kilborn Study identified a high-grade underground "indicated and inferred reserve" of 1,508,000 tons at a diluted mined grade of 0.265 opt with an "associated" 414,600 ounces of gold, using a 0.1 opt (3.1 g/t) cut-off grade. The study was based on a 1,000 ton per day underground and mill processing operation. Average diluted and capped mill feed grade was projected at 0.265 opt (8.2 g/t). The gold was valued at $350 per ounce for the study. Additionally, neither recovered silver on the project nor low grade leach ores were considered.
Today, Calico announced the final results from the first two core holes of the recently completed 12 hole drilling campaign at Grassy Mountain. Drilling was completed on October 30th, targeting the higher grade portion of the resource and totaled 10,216 feet. Highlights included CAL-001 (just south of an historic hole) cutting 65.14 metres grading 4.98 g/t gold and CAL-002 intersecting 46.73 metres grading 8.75 g/t gold using a 50 g/t cap on gold sample results. The remaining drill results will be reported upon receipt of final assays.
Shares of Calico shot due north at the opening bell this morning, gapping from yesterday’s close of 45 cents to open at 58 cents, but have cooled-off throughout the trading day. Shares closed at $0.47, representing a rise of 4.44 percent over yesterday’s close with over 560,000 shares changing hands.
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