Falcon Adds Central Canada Property to Its Cobalt and Gold Holdings in Northwestern Ontario
HIGHLIGHTS:
- Located contiguous to Falcon's recently optioned cobalt, gold and copper claims in historic Atikokan mining camp;
- Property contains past producing Central Canada gold mine;
- Close to major mines and developments such as the Agnico Eagle's Hammond Reef gold project;
- Strategically close to important infrastructure including highway, and electrical power and natural gas pipeline; and,
- Increases Falcon's interest in over 10.5 km of the Quetico Fault Zone & key Cobalt and Gold targets.
Vancouver, British Columbia--(Newsfile Corp. - February 7, 2018) - Falcon Gold Corp. (TSXV: FG) ("Falcon" or the "Company") reports it has signed a letter agreement to acquire a 100% interest in seven mining claims in Hutchinson Township in northwest Ontario. The claims comprise 25 claim units, an area of approximately 390 hectares.
Stephen Wilkinson, Falcon's CEO commented, "The Central Canada Property adds to our strategic land position in a largely overlooked greenstone belt where there has been economically significant historical mining. In addition to the past producing gold mine, the Property covers about 2 kilometres ("km") of our target Cobalt bearing iron formation — on strike from the Staines Cobalt Occurrence reported in Falcon's news release dated January 23, 2018."
The Central Canada Property
The Property is contiguous with the 6 mining claims recently optioned by Falcon approximately 21.5 kilometres ("km") east of Atikokan, Ontario and is about 160 km west of Thunder Bay. Access to the Property is by road from Provincial Highway 11 to Highway 623 to the mine access road on the north side of Sapawe Lake.
The Property can be divided into two geological regimes. The northern claims are underlain by Archean age greenstone rocks that include mafic volcanic flows, gabbroic intrusions and quartz feldspar porphyries in which the gold mineralization is hosted. The south part of the Property is covered by Sapawe Lake and is underlain by iron formation and greenstone rock units that host Falcon's targeted cobalt and gold occurrences. The Staines Cobalt Occurrence is 1.5 km west of the Property's western boundary.
The history of mining and exploration work on the Central Canada Property is summarised as follows:
1901 to 1907 — J. J. Walsh sank a shaft to a depth of 40 feet ("ft") (12 meters ["m"]) and recovered 27 ounces of gold from 18 tons using a stamp mill.
1930 to 1935 — Central Canada Mines Ltd. deepened the shaft to a depth of 130 ft (40 m) with about 140 ft (42 m) and a 75 ton per day gold mill. An unknown quantity of mineralized rock was processed before the company ceased operations.
1965 — Anjamin Mines Limited completed trenching and 3 diamond drill holes for 1,025 m. Hole S1 intersected 6.9 g/t Au across 1.4 ft, 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.
1984 — Kenergy Resource Corp. optioned the property and conducted a surface program of line cutting, geological, geochemical and geophysical surveys.
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.
2002 and 2004 - Freewest Resources Canada Inc. conducted work programs of prospecting and mechanical and manual stripping.
Option Terms
To earn a 100% interest in the Property, Falcon has agreed to make escalating payments over a 4-year option period to the vendor totaling 325,000 common shares and cash payments totaling $141,500, and to incur minimum exploration expenditures of $100,000. Once Falcon acquires its 100% interest, the vendor will retain a 2% Net Smelter Return ("NSR"). Falcon will have the right to purchase 1% for $1,000,000 at any time up to commencement of production. The agreement is subject to TSX Venture Exchange approval.
Qualified Person
The technical content of this news release has been reviewed and approved by Robert T. Chataway, P.Geo. who is a member of the Association of Professional Geoscientists of Ontario and 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. The Company is listed on the TSX Venture exchange with the trading symbol: "FG". For information on the Company, please visit our website: www.falcongold.ca.
CONTACT INFORMATION:
Falcon Gold Corp.
David Tafel
Chairman
Stephen Wilkinson
CEO & Director
Email: info@falcongold.ca
Telephone: 604-683-1991
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.