Falco Resources Ltd. (“Falco” or the “Company”)(TSXV:FPC) is pleased to announce the execution of a letter of agreement for the acquisition of the Donalda property (“Donalda”) from Globex Mining Enterprises Inc. (“Globex”). Donalda is located near Falco’s 100% owned Horne 5 Project located in Rouyn-Noranda, Québec. In consideration for the acquisition of the Donalda property, Falco …
In consideration for the acquisition of the Donalda property, Falco has agreed to pay $300,000 in cash and issue 350,000 units to Globex (“Unit”). Each Unit consists of one (1) common share (“Common Share”) of Falco and one (1) common share purchase warrant (“Warrant”) of Falco. Each Warrant will entitle the holder thereof to purchase one (1) Common Share of the Company at a price of C$1.15 per Common Share, for a period of 5 years following the closing date. Additionally, Falco has agreed to grant Globex a 2.5 % Gross Metal Royalty on all mineral production from the Donalda property and to transfer a 100% ownership of Falco’s Dickenson property located on the east side and adjoining Globex’s Francoeur/Arntfield gold property.
The transaction is subject to Falco obtaining all required regulatory approvals from the TSX Venture Exchange and execution of a final acquisition agreement, including customary representations, warranties, covenants and conditions for a transaction of such nature.
The Donalda Mine Property
The Donalda Mine Property is located within the town of Rouyn-Noranda, Québec, due east of the Horne 5 deposit and Quemont mine infrastructure. The property consists of seven mining claims, covering approximately 146 hectares in the Rouyn Township. The property is host to two important, sub parallel, extensive and continuous gold bearing quartz veins with a historical resource (non NI 43-101 compliant1) of 1.5 million tonnes grading 6.9 g/t gold, of which approximately 790,000 tonnes were mined and approximately 710,000 tonnes remain unexploited.
During mine production, a 620 metre shaft provided access to the two known gold bearing vein structures. The majority of the gold was extracted from the Donalda #1 vein (782,360 tonnes at 5.58g/t were mined over seven years of production) which was mined over a strike length of 825 metres and with a dip length of 400 metres. The #2 vein was discovered about 300 metres below the #1 vein. The small amount of production coming from Donalda #2 Vein (32,145 tonnes at 5.76 g/t were mine over one year of production), was extracted from the Quemont mine.
Both vein structures remain open down dip and could have significant exploration upside. The gold bearing structures were known by previous operators to persist down-dip at least as far as the Horne Creek fault. Surface diamond drilling carried out by Minnova Inc. in 1986 located the extension of the #1 vein south of the Horne Creek fault, which was not mined. Very little exploration has been undertaken below the 700 metres depth.
Most importantly, the Donalda property and its exploration potential will benefit from the proximity to infrastructure of our Horne 5 Project.
Mr. Claude Bernier, Exploration Manager, (P.Geo. Eng.) is the qualified person as defined by National Instrument 43-101 who has reviewed and verified the technical information contained in this news release.
Falco Resources Ltd. is one of the largest mineral claim holders in the Province of Québec, with extensive land holdings in the Abitibi Greenstone Belt. Falco owns about 67,000 hectares of land in the Rouyn-Noranda mining camp, which represents approximately 70% of the entire camp and includes 13 former gold and base metal mine sites. Falco’s principal property is the Horne 5 Project located in the former Horne mine that was operated by Noranda from 1927 to 1976 and produced 11.6 million ounces of gold and 2.5 billion pounds of copper. Osisko Gold Royalties Ltd is the largest shareholder of the Company and currently owns 13.3% of the outstanding shares of the Company.
Neither the 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 press release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (together, “forward-looking statements”) within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are forward-looking statements. Generally, forward-looking statements can be identified by the use of terminology such as “plans”, “expects’, “estimates”, “intends”, “anticipates”, “believes” or variations of such words, or statements that certain actions, events or results “may”, “could”, “would”, “might”, “will be taken”, “occur” or “be achieved”. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include the reliability of the historical data referenced in this press release and those risks set out in Falco’s public documents, including in each management discussion and analysis, filed on SEDAR at www.sedar.com. Although Falco believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by applicable law, Falco disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
1 The resources were prepared prior to the development of National Instrument 43-101. These are considered historic mineral resources and should not be relied upon. Source: The Donalda gold deposit, Rouyn-Noranda, Quebec by Riverin, Bernard and Boily (1990). This paper was presented by the Exploration Division of Minnova Inc., the owner of the property at that time. Falco has not yet independently verified the information in the geological paper.
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