Falcon Signs Letter of Intent for the Poposa Gold-Silver-Copper Property, Argentina; Announces Private Placement
VANCOUVER, BC / ACCESSWIRE / March 20, 2017 / FALCON GOLD CORP. (TSX-V: FG) (“Falcon” or the “Company”) is pleased to announce it has signed a letter of intent (“LOI”) to acquire an initial 85% interest in the Poposa Property comprised of 13 mineral concessions (approx. 9,200 hectares) located in San Juan Province, Argentina.
The acquisition provides strategic benefits to Falcon, including:
A significant (drill ready) exploration and development property within the world class El Indio gold district of Argentina, an investor friendly mining jurisdiction.
Very reasonable acquisition/purchase price for a regional scale project in a prolific mining camp that hosts several large, long-lived mines including Barrick’s Veladero mine, and Del Carmen project, Yamana’s Gualcamayo mine and McEwen Mining’s Los Azules project.
Substantial exploration data base developed over the years upon which future programs can be implemented.
Multiple, well-defined targets as may be associated with large, classic porphyry deposits, ranging from high-grade lode gold occurrences to large tonnage low-grade copper and gold mineralization.
Potential upside to be realized through further exploration drilling for resource definition.
The Poposa Property
The Property is located in western San Juan province in west-central Argentina about 50 kilometres (“km”) west-southwest of the town of Iglesia. The city of San Juan is 160 km to the southeast. The Property’s 13 mineral concessions encompass approximately 9,200 hectares (“ha”) and include two easements for the camp buildings.
The main rock units in the region consist of Carboniferous-age quartzite, sandstone, and minor shale of the Agua Negra Formation. The sedimentary units are intruded by granitic stocks that are covered by dacite-rhyolite volcanic rocks of the Choiyoi Group, which are of Permian-Triassic age; and subvolcanic and volcanic rocks including tuffs, andesite, and dacite lava flows and andesite-dacite-trachyte porphyry intrusions of Late Miocene age.
The Property’s gold and copper mineralization was first discovered and staked by the Vendor in 1989. Table One summarizes the reported history of exploration conducted on the Property. Mineralization recognized within the Property consists of several extensive systems of veins and vein stockworks enveloped by moderate to strong argillic alteration. Alteration is exposed over an area of about two by four km, including several strongly argillically altered centers up to 1 km in diameter. The five main target areas within the Property are known as the La Poposa (northern Sector), Filo Amarillo (northeastern sector), Quebrada Poposa (Central Sector), Cerro Morro (central east Sector), and the Esperanza (southernmost Sector). Historic assessment has consisted of prospecting, mapping, trenching, and drilling.
Table One: Summary of previous work on the Poposa Property
Acquired initial concessions
Discovered areas of alteration
Argentina Gold Corp.
• Surface chip sampling program
• Trenching program
• 1,100m of diamond drilling in 20 holes
– Trench 12A chip sample ran 7.26 g/t Au over 9.4 metres
– DDH-2 intercepted 4.43 m grading 3.9 g/t Au
– Filo Amarillo vein surface sample graded 372 g/t Au over 2 m width
Western Mines Co. Inc.
Drilled 4,571m in 37 Reverse Circulation holes
Several new gold and copper anomalies determined
Marifil Mines Ltd. & ATW Venture Corp.
2,628 m of diamond drilling in 8 diamond drill
Trench chip sample returned – 6.0m @ 149.65 g/t Au and 16.0 g/t Ag
Trench chip sample returned – 3m @ 7.34 g/t Au and 156 g/t Ag (see Marifil news – Dec. 12, 2006)
Terreno Resources Inc.
• New geological and alteration maps,
• resampled trenches,
• 7 lines of Induced Polarization, and
• 1,108m in 5 diamond drill holes (plus 2 holes abandoned.)
– DDH P0-03 averaged 0.79 g/t Au and 0.12% Cu over 25 m.
Falcon has agreed to make annual payments over a six year period to the project owner totaling US$2,600,000 in cash (first year payments total US$130,000) and to issue a total of 1.5 million Falcon common shares. In addition, Falcon will make exploration expenditures on the Property according to approved budgets as recommended in an independently prepared report. The transaction is subject to completion of due diligence and TSX Venture Exchange approval.
Falcon is pleased to announce it has arranged a non-brokered private placement for up to $600,000 priced at $.05/Unit. Each Unit consists of one common share and one 2-year common share purchase warrant exercisable at $.08. Closing will be subject to TSX Venture Exchange approval and any shares issued will be subject to a four-month hold period.
Proceeds from this financing shall be used by the Company as working capital for the Poposa project due diligence and for general corporate purposes.
The technical content of this news release has been reviewed and approved by Mr. Bruce Goad, 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 opportunities in the Americas. For information on the Company, please visit our website: www.falcongold.ca.
Falcon Gold Corp.
CEO & Director
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 address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such 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.
SOURCE: Falcon Gold Corp.