Vancouver, B.C., April 16, 2020. FALCON GOLD CORP. (FG:TSX-V), (3FA:GR); (“Falcon” or the Company”) is pleased to announce the acquisition of the Spitfire and Sunny Boy claims (the “Project”) in south central British Columbia. The claims are located approximately 16 kilometers east of Merritt and total 502 hectares. The properties are close to excellent infrastructure and access is gained via paved highway and ranch and logging roads.
The Merritt district has a lengthy history of mineral exploration and development that began in the late 1800’s with first recorded discoveries being made on the Nicola Lake Property in 1908, which location is presently covered by the north east portion of the Sunny Boy claim block. A resurgent focus in the area makes it B.C.’s newest emerging gold belt. The location map included below shows the Project in relation to mines developed in the area. The original exploration and discoveries were of gold, platinum (in tulameenite, a Pt-Cu-Fe metallic mineral) and copper. Numerous copper discoveries became major mines in the area, including Craigmont, Copper Mountain, Afton and Highland Valley.
Most of the early exploration at the Project focused on quartz veins that hosted gold, copper and silver. High grade values have been reported at 124 to 127 grams per tonne gold (Au) and 309 to 514 grams per tonne silver (Ag) in quartz vein material from underground workings by Quilchena Mining and Development Company Ltd. The narrow but high-grade veins have been trenched, pitted, blasted, and drilled but have never been commercially mined. The main showing, Master Vein, boasts high-grade gold mineralization up to 50.53 oz/t as sampled by Ken Sanders, P. Eng in 1974. To the south-west of the Sunny Boy Zone in an area referred to as the “AL” showing, soil geochemistry, geophysics (magnetometer/VLF), trenching, sampling and diamond drilling have been performed on the mineralized veins. The best drill result was 3.77 grams per tonne gold, 0.24 % copper, and 32.9 grams per tonne silver over 13.4 meters (AR #8494, AR# 15572 AR#1582, AR#18887). The Project showings have been referred to as epithermal gold occurrences by past operators.
The Project is located in the Quesnellia terrane which is characterized by submarine volcanic and volcaniclastic rocks of the Nicola group to the south and the Takla group in the north. Two major north trending structures define three structure subdivisions: the Central and Eastern belts are separated by the Summers Creek Fault, and the Central and Western belts are separated by the Allison Fault system. Locally, dacite and rhyolite flows, welded tuff and breccia and intercalated intermediate to felsic heterolithic volcaniclastic rocks are interpreted as representative of centres of felsic volcanism. The gold mineralization and geological setting of the Project bears similarities to the Prospect Valley and Shovelnose epithermal gold projects currently being explored by Westhaven Ventures Inc.
Falcon’s 2019 due-diligence work confirmed the presence of gold mineralization along the Master Vein over a 300-meter strike length with samples ranging from 0.33 to 2.74 oz/t Au. Recent data compilation of historic exploration work suggest that the best exploration targets on the property are high-grade gold vein deposits along flexures in structure in the northeastern portion of the project. The company is planning tightly spaced soil sampling, EM and IP geophysics, and structural mapping as the best approach for identifying new mineralized structures for both gold and base metals occurrences.
To earn 100 percent interest, Falcon has agreed to issue 2.5 Million common shares and 2.5 Million warrants at a conversion price of 10 cents with a 2 year term and will make a one time cash payment of $ 25,000 to the vendor on the 6 month anniversary. The vendor will retain a 2% net smelter royalty (NSR). Falcon will have the right to purchase half of the total NSR (1 percent), at any time up to commencement of production for a one-time payment of $ 400,000. The transaction is subject to TSX Venture Exchange approval.
The technical content of this news release has been reviewed and approved by Mr. Alex Pleson, P.Geo., who is a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.
About Falcon Gold Corp.
Falcon is a Canadian mineral exploration company focused on generating, acquiring, and exploring mineral opportunities in the Americas. Falcon’s flagship project, the Central Canada gold project is approximately 20 kilometers SE of Agnico Eagle’s Hammond Reef Gold Deposit which has a Measured & Indicated estimated resource of 208 Million Tonnes containing 4.5 Million ounces of gold. The Hammond Reef gold property lies on the Hammond fault which is the structural conduit for the gold deposit. The Central Canada gold property lies on a similar major structure, the Quetico Fault. Gold recovery at Central Canada includes: 1901 to 1907 – Shaft to a depth of 12 m and 27 oz of gold from 18 tons using a stamp mill. 1930 to 1935 – Central Canada Mines Ltd. deepened the shaft to 40 m with about 42 m of crosscuts and installed a 75 ton per day gold mill. 1965 Anjamin Mines completed diamond drilling and in hole S2 returned a 2 ft section of 37.0 g/t Au and hole S3 assayed 44.0 g/t Au across 7 ft. 1985 – Interquest Resources Corp. drilled 13 diamond holes totaling 1,840 m in which a 3.8 ft intersection showed 30.0 g/t Au. The company holds 3 projects in Red Lake; the Bruce and Camping lake projects, the Wabunk Bay base metal project and a 49% interest in the Burton gold property with Iamgold in Sudbury.
Falcon Gold Corp. Karim Rayani
Cautionary Language and Forward-Looking Statements
This news release may contain forward looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, etc. Forward-looking statements are statements that relate to future events or future financial performance, and therefore, involve inherent risks and uncertainties. In some cases, you can identify forward-looking statements by the use of terminology such as “may”, “should”, “intend”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “project”, “predict”, “potential”, or “continue” or the negative of these terms or other comparable terminology. These statements speak only as of the date of this news release. This news release may also contain inferences to future oriented financial information (“FOFI”) within the meaning of applicable securities laws. The information in this news release has been prepared by our management to provide a context for the acquired projects and the registration of title and to provide the reader with an outlook for our future activities and anticipated focus projects and may not be appropriate for other purposes. Forward-looking statements in this announcement include, (but are not limited to), the inference that a resurgent focus in the Project area makes it B.C.’s newest emerging gold belt may continue; that the recent data compilation of historic exploration work will result in campaigns of tightly spaced soil sampling, EM and IP geophysics, and structural mapping; that both gold and base metals occurrences might be identified; or that the transaction will receive TSX Venture Exchange approval. Actual results may differ materially from those currently anticipated in such statements, and any implication that the Company’s initiatives will individually or collectively be successful comprise forward looking statements.
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.