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VANCOUVER, BC / ACCESSWIRE / February 4, 2021 / Falcon Gold Corp. (TSXV:FG)(FSE:3FA)(OTC PINK:FGLDF); ("Falcon" or the "Company") announces it has entered into an agreement to purchase a large, prospective gold property, the Gaspard Claims in central British Columbia. The Claims are reported to cover similar geology to and may be an extension of the Spences Bridge Gold Belt (the "SBGB") that hosts several significant developing gold deposits such as Westhaven Gold Corp.'s Shovelnose gold project.
Chief Executive Officer, Karim Rayani stated. "The Gaspard Gold project has tremendous potential adding to our BC holdings, having high grade soil and stream sediment samples over a 1.8 km distance shows we are in the right district. The claims look to be an extension of the Spences Bridge Gold Belt that hosts several significant developing gold deposits such as Westhaven (WHN.V) Shovelnose gold project."
The Gaspard Property comprises 3 mineral claims, covering 3,955 hectares ("ha") in the Clinton Mining District of central British Columbia. The Property has year-round, all-season road access with a good network of active logging roads. The City of Williams Lake located 60 kilometers ("km") northeast of the Property is a regional supply centre for mining, logging and ranching.
The SBGB forms a northwest trending belt of Eocene-age, volcaniclastic and sedimentary rocks more than 430 km long and up to 24 km wide extending to the north east from town of Princeton. The volcanic units are dominated by dacitic to rhyolitic volcaniclastic rocks, breccias and domes that are well known to host significant gold occurrences. The volcanic sequence observed on the Gaspard claims includes a low-dipping dacitic flow unit overlain by a central volcaniclastic rhyolitic unit capped by basalts. The Property is located immediately east of the northernmost mapped limit of the Spences Bridge Group, in an area that is presented on regional BC geological maps as unnamed Eocene-age, intermediate to felsic volcaniclastic rocks bearing remarkable similarity to the Spences Bridge Group.
The closest gold deposit to the Property is located approximately 26 km to the south and is the Blackdome gold mine project. The Blackdome reportedly has resources of 144,500 tonnes ("t") Indicated grading 11.29 grams per tonne ("g/t") gold and 50.01 g/t silver, and 90,600 t Inferred grading 8.79 g/t gold and 18.61 g/t silver (as currently reported by Tempus Resources Ltd.) The Blackdome mineralization is characterized as volcanic- hosted epithermal gold and silver class and may represent the target-type for the Gaspard Claims.
The Gaspard Claims are mostly covered by unconsolidated glacial deposits with only about 3% outcrop exposures. Historical work has included both stream sediment sampling and soil sampling in the northern part of the claims group that successfully discovered gold geochemical anomalies. Discovery Consultants Ltd. was hired during the 1990 field season to collect eleven (11) heavy mineral stream sediment samples. This survey covered four creek drainages on the current Gaspard 3 claim from the base to headwaters. A follow-up survey consisting of 212 "B-Horizon" soil geochemistry samples was also completed. Anomalous grades of the stream sediment samples returned from 94 ppb Au to 5,910 ppb Au within 4 adjacent streams, defining a continuous gold anomaly over an upstream distance of 1.8 kilometers. Anomalous B-Horizon soil samples assayed by standard fire assay ranged up to 1127 ppb Au and confirmed the findings of the stream sediment survey. In combination, the gold anomaly defined gold anomaly is defined over a surface area of 1800 m x 1200 m and much of the claims to the south east remain to be tested.
The Acquisition Agreement
To acquire 100% interest in the Gaspard Claims, the Company shall pay to the Vendor as follows:
$15,000 within fifteen (15) days of the Effective Date where the Effective date occurs within 5 days following regulatory approval of the acquisition;
200,000 common shares in the Company within fifteen (15) days of the Effective Date; and,
200,000 warrants at $0.20 per share for a 2-year term within fifteen (15) days of the Effective Date;
Falcon has further committed to complete $34,000 in exploration expenditures on the property during the 2021 field season. In addition, the vendor will retain a two percent (2%) on Net Smelter Returns royalty ("NSR") on the Property. Falcon may at any time purchase 1% of the NSR for $1,500,000.
All the Falcon shares and share purchase warrants issued will be subject to a 4 month hold from the date of issuance and subject to the terms of the TSX Venture Exchange.
Next Steps for the Gaspard Claims
In an internal report by the vendor, the next recommended steps include an initial high-resolution helicopter-borne magnetic survey to provide further definition over the claims area, including 320 kilometers of flight lines, with a flight line spacing of 150m along East-West oriented flight lines, with N-S oriented tie-lines. The E-W oriented flight lines are optimal for the delineation of both northeast and northwest trending structures. Also, a further 60 regular and 60 heavy mineral stream sediment samples are required over the areas of deep overburden cover across the remaining Gaspard Property. In addition, more prospecting, mapping and sampling of the brecciated rhyolite with quartz vein stockwork is needed to determine the source (or sources) of the gold stream and soil anomalies. The same report suggested that these next steps would require a budget of approximately $250,000 and should result in well-defined gold mineralization drill targets.
The technical content of this news release has been reviewed and approved by William Yeoman, P.Geo., who is a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.
About Falcon Gold Corp., the Central Canada Gold Mine Project, and Jack Lake Trend
Falcon is a Canadian mineral exploration company focused on generating, acquiring, and exploring opportunities in the Americas. Falcon's flagship project, the Central Canada Gold Mine, is approximately 20 km south east of Agnico Eagle's Hammond Reef Gold Deposit which has Measured & Indicated estimated resources of 208 million tonnes containing 4.5 million ounces of gold. The Hammond Reef gold property lies on the Hammond fault which is a splay off of the Quetico Fault Zone ("QFZ") and may be the control for the gold deposit. The Central Gold property lies on a similar major splay of the QFZ.
*History of Central Canada gold mine includes;
1901 to 1907 - Shaft constructed to a depth of 12m and 27 oz of gold from 18 tons using a stamp mill.
1930 to 1934 - Central Canada Mines Ltd. installed a 75 ton per day gold mill. Development work included 1,829 m of drilling and a vertical shaft to a depth of 45 m with about 42 m of crosscuts and drifts on the 100-foot level. In December, 1934 the mine had reportedly outlined approximately 230,000 ounces of gold with an average grade of 9.9 g/t Au.
1935 - With the on-going financial crisis of the Great Depression, the Central Canada Mines was unable to fund operations and the mine ceased operations.
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 1,840m in which a 3.8 ft intersection showed 30.0 g/t Au.
2010 to 2012 - TerraX Minerals Inc. conducted programs that included line cutting, geological surveys and 363 m of drilling.
*Historical results reported for the Central Canada Gold Mine project for the period from 1901 to 2012 are recognized as historical in nature only. Previously reported results are considered encouraging and demonstrate the need for additional follow-up gold exploration programs on the property.
July 2020 to December 2020 - Falcon Gold Corp. completed its inaugural 17-hole program totaling 2,942.5m of core. In addition, the Company acquired by staking an additional 7,477 ha of mineral claims consisting of 369 units immediately south and northwest of Agnico Eagle Mines Ltd.'s Hammond Reef property.
The Company also holds 4 additional projects. The Camping Lake Gold property in the world-renowned Red Lake mining camp; a 49% interest in the Burton Gold property with Iamgold near Sudbury Ontario; the Spitfire-Sunny Boy Gold Claims near Merritt, B.C.; and most recently, the Springpole West Property near Red Lake, Ontario.
Falcon Gold Corp.
Chief Executive Officer, Director
Telephone: (604) 716-0551
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.
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