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Sitka Gold Corp. (TSXV: SIG) (FSE: 1RF) (OTCQB: SITKF) ("Sitka" or the "Company") is pleased to announce that multiple occurrences of visible gold have been observed, beginning near surface, in the first six drill holes to be completed by the Company at the Contact zone. Visible gold has now been observed in the drill core from every target that has been drilled within the Clear Creek Intrusive Complex so far this year, including Blackjack, Saddle, Eiger and Rhosgobel. Up to 5,000 metres of drilling is currently underway at the Contact-Pukelman zone (see Figures 3, 4 and 6) as part of the fully funded 30,000 metre diamond drill program currently underway at Sitka's 100% owned, road accessible RC Gold Project located in the Yukon's prolific Tombstone Gold Belt. Over 25,000 metres of drilling has been completed at RC Gold this year where drilling has focused on growing the Blackjack and Eiger deposits, expanding the mineralized footprint of the Saddle zone, and testing the potential of the Rhosgobel, Contact-Pukelman and Bear Paw targets to host additional intrusion-related gold deposits. Four drill rigs are currently operating on the Project with two rigs at Pukelman, one rig at Rhosgobel and one rig at Bear Paw (see Figure 6) with assay results currently pending for 52 holes.
- Visible gold observed in first six diamond drill holes drilled at the Contact zone
- Drilling to date has traced mineralization along a strike of approximately 900 m and to a depth of approximately 430 m from surface at the Contact zone
- Visible gold has now been observed in drill core from all five targets drilled within the Clear Creek Intrusive Complex this year
- First drilling completed since 2010/2011 that produced historical intersections in Contact zone of 38.3 m of 1.54 g/t gold, 74.3 m of 1.01 g/t gold and 43.4 m of 1.20 g/t gold in Holes CC11-043, 044, 045 respectively and 10.7 m of 20.46 g/t gold in CC10-22
- Six holes totalling 2,172 m completed as part of the ongoing 5,000 m of drilling planned at Contact-Pukelman target
- Drilling has also recently commenced at the Bear Paw target
- Results are currently pending for all holes drilled at Contact-Pukelman along with holes completed across Blackjack, Saddle, Eiger, Rhosgobel and Bear Paw
- Over 25,000 metres of the ongoing 30,000 m planned drill program completed with assays currently pending for 52 holes
"The Contact zone is now the fifth target drilled by Sitka Gold in 2025 to yield multiple occurrences of visible gold within the core of the Clear Creek Intrusive Complex," said Cor Coe, CEO and Director of Sitka Gold. "The widespread and robust gold mineralization being intersected in our drilling across this area continues to demonstrate that the RC Gold project is a unique gold camp with multiple intrusions that display the potential to host several multi-million ounce gold deposits within this relatively small 3 by 5 kilometre core area. With an existing multi-million ounce gold resource open for expansion and numerous other high-quality targets within the 431 square kilometre land package, RC Gold is quickly emerging as the foundation of a potential new mining district in the Yukon."
Figure 1: Examples of coarse visible gold (VG) observed in drill core at the Contact Zone. Recent drilling at the Contact Zone has intersected VG in all six holes completed so far this year, including the largest VG particles observed on the property in drill core to date (scale is the same for all pictures).
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Figure 2: Example of large particles of visible gold seen within a quartz vein in metasedimentary rock in the drill core of DDRCCC-25-115 from 39.4 to 39.7 m length drilled at the Contact zone.
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Contact-Pukelman Target
Six holes totalling 2,172 metres have been completed as part of the ongoing 5,000 metres of drilling planned at the Contact-Pukelman target. Drilling intersected broad intervals of strongly altered metasediments cut by several quartz monzonite, and biotite-feldspar porphyritic dykes, along with abundant, cm scale, sheeted quartz veins. Visible gold was observed in the sheeted quartz veins and was often associated with arsenopyrite, bismuthinite, and minor scheelite (see Figures 1 and 2).
Sitka's 2025 drill program is planned to expand the mineralized footprint of the Contact zone, test the zone with oriented diamond drill core to better understand controls on the mineralization and test the linkage between the metasedimentary and intrusion hosted mineralization of the Contact and Pukelman zones. The Contact zone was previously drilled in 2010 and 2011 with 1,660 metres in 12 holes of reverse circulation drilling and 254 metres in 2 holes of diamond drilling (see Table 1) and encountered significant mineralization in quartz veining within metasedimentary rocks up to 450 metres south of the Pukelman intrusion. Current drilling to date has traced gold mineralization across a lateral extent of approximately 900 metres x 650 metres and from surface to a depth of approximately 430 metres (see Figure 3 and Table 1). While this is an encouraging indicator of the potential size of this target, the Company cautions that additional drilling and assay results are required to confirm the extent and continuity of gold mineralization within this area.
* While visible gold observations are very encouraging and confirm the presence of gold mineralization, they are not intended to imply potential gold grades. Gold assays will be published after they are received from the lab for mineralized intervals in which visible gold particles were noted.
Figure 3: A location map of the Pukelman/Contact area showing the location of drill holes DDRCCC-25-111 to -116. Drilling to date has traced gold mineralization across a lateral extent of approximately 900 m x 650 m and from surface to a depth of approximately 430 m.
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Table 1: Highlights of reverse circulation drilling from 2010 and 2011 at the Contact zone
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*Intervals are drilled core length, as insufficient drilling has been completed at this time to determine true widths.
(a) O'Brien, 2010; Assessment Report, 2010 Diamond Drilling Program, Clear Creek Property (Assessment report 095539)
(b) Shutty, 2011; Assessment Report, 2011 Exploration Program, Clear Creek Property (Assessment Report 095984)
Figure 4: Long Section showing target areas within the Clear Creek Intrusive Complex (CCIC), from the Blackjack deposit to the Rhosgobel target and the proposed drilling metres that were allocated as part of the 30,000 metre diamond drilling program planned for 2025. Visible gold has now been observed in drill core from all of the targets drilled this year within the CCIC.
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Figure 5: Regional map of the RC Gold Project located in the western portion of Yukon's prolific Tombstone Gold Belt.
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Figure 6: A plan map of the Clear Creek Intrusive Complex (CCIC) showing the updated resource areas at Blackjack and Eiger, and the six additional areas that have drill targets indicated by the mauve hatched areas. The map highlights the numerous drill targets that Sitka has outlined within the CCIC which all are connected by the road network on the project and occur in an area measuring five (5) km north-south and twelve (12) km east-west. Additional areas highlighted by strong gold in soil anomalies are being advanced to the drill ready stage with additional geological work in 2025.
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About the Flagship RC Gold Project
Sitka's 100% owned RC Gold Project consists of a 431 square kilometre contiguous district-scale land package located in the heart of Yukon's Tombstone Gold Belt. The project is located approximately 100 kilometres east of Dawson City, which has a 5,000 foot paved runway, and is accessed via a secondary gravel road from the Klondike Highway which is usable year-round and is an approximate 2 hour drive from Dawson City. It is the largest consolidated land package strategically positioned mid-way between the Eagle Gold Mine and the past producing Brewery Creek Gold Mine.
The RC Gold Project now has pit-constrained mineral resources that are contained in two zones: the Blackjack and Eiger gold deposits with 1,291,000 ounces of gold in 39,962,000 tonnes grading 1.01 g/t gold in an indicated category and 1,044,000 ounces of gold in 34,603,000 tonnes grading 0.94 g/t in an inferred category at Blackjack and 440,000 ounces of gold in 27,362,000 tonnes grading 0.50 g/t gold in an inferred category at Eiger. These resource estimate numbers are supported by the recently updated technical report for RC Gold, prepared in accordance with NI 43-101 standards, entitled "Clear Creek Property, RC Gold Project NI 43-101 Technical Report Dawson Mining District, Yukon Territory", prepared by Ronald G. Simpson, P. Geo., of GeoSim Services Inc. with an effective date of January 21, 2025. This report is available on SEDAR+ (http://www.sedarplus.ca) and on the Company's website (www.sitkagoldcorp.com).
Both of these deposits begin at surface, are potentially open pit minable and amenable to heap leaching, with initial bottle roll tests indicating that the gold is not refractory and has high gold recoveries of up to 94% with minimal NaCN consumption (see News Release July 13, 2022).
As of the end of 2024, the Company has drilled 72 diamond drill holes into this system for a total of approximately 25,136 metres. Other targets drilled to date include the Saddle, Josephine, Rhosgobel and Pukelman zones. The resource expansion drilling in 2023 at Blackjack produced results of up to 219.0 metres of 1.34 g/t gold including 124.8 metres of 2.01 g/t gold and 55.0 metres of 3.11 g/t gold in drill hole DDRCCC-23-047 (see news release dated September 26, 2023) and in 2024 results of up to 678.1 metres of 1.04 g/t gold starting from surface in DDRCCC-24-068, including 409.5 metres of 1.36 g/t gold, 93.0 metres of 2.57 g/t gold and 5.5 metres of 17.59 g/t gold (see news release dated October 21, 2024). Results from DDRCCC-25-075, completed during winter drilling in 2025, produced the best high-grade intercepts drilled to date at Blackjack, returning 352.8 metres of 1.55 g/t gold including 108.9 metres of 3.27 g/t gold and 45.0 metres of 4.52 g/t gold (see news release dated April 22, 2025).
A planned 30,000 metre diamond drilling program for 2025 is currently underway at RC Gold.
RC Gold Deposit Model
Exploration on the Property has mainly focused on identifying an intrusion-related gold system ("IRGS"). The property is within the Tombstone Gold Belt which is the prominent host to IRGS deposits within the Tintina Gold Province in Yukon and Alaska. Notable deposits from the belt include: Fort Knox Mine in Alaska with current Proven and Probable Reserves of 230 million tonnes at 0.3 g/t Au (2.471 million ounces; Sims 2018)(1); Eagle Gold Mine with current Measured and Indicated Resources of 233 million tonnes at a grade of 0.57 g/t Au at the Eagle Main Zone (4.303 million ounces; Harvey et al, 2022)(2); the Brewery Creek deposit with current Indicated Mineral Resource of 22.2 million tonnes at a gold grade of 1.11 g/t (0.789 million ounces; Hulse et al. 2020)(3); the AurMac Project with an Inferred Mineral Resource of 347.49 million tonnes grading 0.63 gram per tonne gold (7.00 million ounces)(4) and the Valley Deposit, with a current Measured and Indicated Mineral Resource of 7.94 million oz gold at 1.21 g/t and an additional Inferred Mineral Resource of 0.89 million oz at 0.62 g/t gold(5), and the Raven deposit with an inferred mineral resource of 1.1 million oz (19.96 million tonnes at 1.67 g/t gold)(6). The QP has been unable to verify the information regarding the above resource estimations and the information is not necessarily indicative of the mineralization on the property that is the subject of the disclosure.
(1) Sims J. Fort Knox Mine Fairbanks North Star Borough, Alaska, USA National Instrument 43-101 Technical Report. June 11, 2018. https://s2.q4cdn.com/496390694/files/doc_downloads...
(2) Harvey N., Gray P., Winterton J., Jutras M., Levy M.,Technical Report for the Eagle Gold Mine, Yukon Territory, Canada. Victoria Gold Corp. December 31, 2022. https://vgcx.com/site/assets/files/6534/vgcx_-_202...
(3) Hulse D, Emanuel C, Cook C. NI 43-101 Technical Report on Mineral Resources. Gustavson Associates. May 31, 2020. https://minedocs.com/22/Brewery-Creek-PEA-01182022...
(4) Thornton T., Jutras M., Malhotra D. Technical Report Aurmac Property Mayo Mining District, Yukon Territory, Canada. JDS Energy and Mining Inc. February 6, 2024. https://banyangold.com/site/assets/files/5251/bany...
(5)https://snowlinegold.com/2025/05/15/snowline-gold-...
(6) Jutras, M. 2022. Technical Report on the Raven Mineral Deposit, Mayo Mining District Yukon Territory, Canada, prepared for Victoria Gold Corp and filed on SEDAR (www.sedar.com) with an effective date of September 15, 2022
Upcoming Events
Sitka Gold will be attending and/or presenting at the following events*:
- Precious Metals Summit, Beaver Creek, Colorado: September 9 - 12, 2025
- Yukon Geoscience Forum, Whitehorse, YT: November 16 - 19, 2025
- Swiss Mining Institute, Zürich, Switzerland: November 19 - 22, 2025
*All events are subject to change.
About Sitka Gold Corp.
Sitka Gold Corp. is a well-funded mineral exploration company headquartered in Canada. The Company is managed by a team of experienced industry professionals and is focused on exploring for economically viable mineral deposits with its primary emphasis on gold, silver and copper mineral properties of merit. Sitka is currently advancing its 100% owned, 431 square kilometre flagship RC Gold Project located within the Tombstone Gold Belt in the Yukon Territory. The Company is also advancing the Alpha Gold Project in Nevada and currently has drill permits for its Burro Creek Gold and Silver Project in Arizona and the Coppermine River Project in Nunavut, all of which are 100% owned by the Company.
*For more detailed information on the Company's properties please visit our website at www.sitkagoldcorp.com.
The scientific and technical content of this news release has been reviewed and approved by Gilles Dessureau, P.Geo., V.P. Exploration of the Company, and a Qualified Person (QP) as defined by National Instrument 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS OF
SITKA GOLD CORP.
"Donald Penner"
President and Director
For more information contact:
| Donald Penner President & Director 778-212-1950 dpenner@sitkagoldcorp.com | or | Cor Coe CEO & Director 604-817-4753 ccoe@sitkagoldcorp.com |
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary and Forward-Looking Statements
This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding discussions of future plans, estimates and forecasts and statements as to management's expectations and intentions and the Company's anticipated work programs.
These forward‐looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things, market uncertainty and the results of the Company's anticipated work programs.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.
SIG:CA
Sarama Resources
Investor Insight
Sarama Resources offers a compelling investment opportunity driven by a +US$120 million fully-funded arbitration claim and two belt-scale gold projects encompassing 1,000 sq km of the Cosmo-Newbery and Jutson Rocks Greenstone Belts in Western Australia’s highly prolific Laverton Gold District, which lies within the wider world-renowned Eastern Goldfields region.
Overview
Sarama Resources Ltd (ASX:SRR,TSXV:SWA) is an Australian-based gold exploration and development company with a dual value proposition: significant exploration upside in the world class Eastern Goldfields of Western Australia and a fully funded international arbitration claim against the Government of Burkina Faso.
The company controls two belt-scale projects in the prolific Laverton Gold District, together covering ~1,000km² and more than 100km of strike in highly prospective but historically underexplored terrain. The flagship Cosmo Gold Project (580 sq km) dominates the Cosmo-Newbery Greenstone Belt, while the Mt Venn Project (420 sq km) covers the Jutson Rocks Belt just 40km away. Both lie near world-class deposits including Gruyere (+8Moz) and Garden Well (2.5Moz), benefit from excellent road access and nearby mills, and will see maiden drilling commence in Q4 CY25.
In parallel, Sarama is pursuing an arbitration claim seeking no less than US$120 million in damages relating to the unlawful withdrawal of its Tankoro Deposit in Burkina Faso. The claim is fully financed through a non-recourse facility with Locke Capital and is being prosecuted by leading law firm Boies Schiller Flexner, which has secured major recent awards for peers including Indiana Resources (US$120M) and GreenX Metals (AU$490M).
Sarama’s experienced board and management team have a proven discovery track record, including the +20Moz Kibali Mine (DRC) and the +3Moz Sanutura Project (Burkina Faso).
Company Highlights
Dual Value Drivers
- Exploration Upside – Two underexplored, belt-scale gold projects in Western Australia’s prolific Laverton Gold District, together spanning ~1,000 sq km with >100km of prospective strike.
- Arbitration Claim – Fully funded, >US$120M arbitration claim against the Government of Burkina Faso, potentially worth multiples of Sarama’s current market capitalisation.
Exploration Opportunity
- Cosmo & Mt Venn Projects – The flagship Cosmo Project covers 580 sq km of the underexplored Cosmo-Newbery Greenstone Belt. Complementing this, Sarama holds an 80% interest in the Mt Venn Project (420 sq km), located only 40km from Cosmo and close to Gruyere (+8Moz), Garden Well (2.5Moz) and Golden Highway (1Moz).
- Favourable Setting – Situated in highly prospective greenstone belts with excellent road access and several underutilised nearby mills, significantly lowering development hurdles.
- Untapped Potential – Historical land access restrictions meant limited prior exploration; current programs are designed to unlock this potential.
- Pipeline of Work – First drilling and follow-up exploration programs scheduled for Q4 CY25.
Arbitration Claim
- Large-Scale Claim – Seeking damages of no less than US$120M relating to the illegal withdrawal of rights to the multi-million-ounce Tankoro Deposit.
- Fully Funded – Backed by a non-recourse funding facility covering all legal costs.
- Top Legal Team – Boies Schiller Flexner appointed (100 percent win rate in recent Investor-State cases), with proceedings underway at ICSID under bilateral treaty protections.
- Proven Precedent – Comparable claims prosecuted by the same team have delivered major settlements, including US$120M (Indiana Resources) and AU$490M (GreenX Metals).
Team Track Record
- Led by a seasoned group with over 30 years’ experience each, credited with major gold discoveries including the +20Moz Kibali Mine (DRC) and the 3Moz Tankoro Deposit (Burkina Faso).
Key Projects
Cosmo Gold Project
The Cosmo Gold Project is Sarama’s flagship exploration asset, covering 580km² of the Cosmo-Newbery Greenstone Belt in Western Australia’s Laverton Gold District. Located ~95km from Laverton and accessible by predominantly paved roads, the project enjoys excellent infrastructure, with Kalgoorlie just four hours away. Cosmo is underlain by prospective Archaean volcanics with localised intrusions and shallow cover, yet has seen minimal modern exploration due to historic access restrictions. A major regional shear zone, interpreted to extend for more than 50km across the project, provides a strong structural framework for gold deposition.
Gold was first discovered at Cosmo in the early 1900s, with multiple shafts and workings mapped and high-grade ore historically mined and transported to a stamp mill in Laverton. Early miners selectively targeted narrow quartz veins, which are unlikely to represent the main system but instead may point to a much larger, concealed mineralised system.
Recent work by Sarama, including a soil geochemistry program completed in early 2025, has defined multiple kilometre-scale gold anomalies totaling 45km in strike and up to 1.8km in width. These anomalies confirm the presence of a large, coherent gold system and have outlined several high-priority drill targets. With historical evidence of mineralisation, favourable structural geology, and strong regional prospectivity, Cosmo presents a compelling opportunity for a major new discovery. Sarama plans to commence a maiden drilling program in late 2025.
Mt Venn Gold Project
The Mt Venn Project is a newly acquired, belt-scale opportunity located in the Laverton Gold District of Western Australia. Operated under a joint venture where Sarama holds an 80 percent interest (Cazaly Resources 20 percent), Sarama acts as operator and manager. The project spans 420 sq km and captures the majority of the underexplored Jutson Rocks Greenstone Belt across ~50km of strike length. A regionally extensive shear zone, 1–3km wide, runs the full length of the belt with subordinate splays in the south, creating a favourable structural framework for gold deposition.
Gold mineralisation was first identified in the 1920s, and subsequent exploration has defined a 35km x 4km gold corridor hosting multiple occurrences and kilometre-scale soil anomalies. Historic drilling at the Three Bears prospect intersected broad zones of mineralisation that remain open along strike and at depth. Importantly, the project also demonstrates polymetallic potential with copper, nickel, zinc and platinum group elements, a trait often associated with larger, more significant systems.
Strategically located ~40km from Sarama’s flagship Cosmo Project, Mt Venn lies close to major deposits, including the +8Moz Gruyere mine and the 1Moz Golden Highway deposit. Together, Cosmo and Mt Venn provide Sarama with control over highly prospective and complementary ground, with Cosmo already hosting ~45km of gold-anomalous trends and Mt Venn offering proven mineralisation, early drilling success, and strong polymetallic prospectivity. With compelling targets identified across both projects, Sarama sees considerable exploration upside and intends to unlock this value through systematic, focused exploration programs.
Management Team
Andrew Dinning – Executive Chairman
Andrew Dinning is a founder and the executive chairman of Sarama Resources. Dinning has over 35 years of experience in the international mining arena and has worked in Australia, the Democratic Republic of Congo, West Africa, the UK and Russia. He has extensive mine management, operations and capital markets experience and has spent most of his career in the gold sector.
Dinning was a director and president of Moto Goldmines in the Democratic Republic of Congo from 2005 to 2009. He oversaw the development of the company's Moto gold project (Kibali Gold) from two million to more than 22 million ounces of gold. Dinning took the project from exploration to pre-development. The Moto gold project was later taken over by Randgold Resources and AngloGold Ashanti for $600 million in October 2009.
John (Jack) Hamilton - Vice-president of Exploration
Jack Hamilton is a founder and the vice-president of exploration at Sarama Resources. Hamilton has 35 years of experience as a professional geologist. Hamilton has worked around the world for international resource companies. Before Sarama, he was the exploration manager for Moto Goldmines. At Moto Goldmines, he led the team that discovered the main deposits and resource at the world-class Moto gold project (now Kibali Gold) which has a resource of more than 22 million ounces. Hamilton specializes in precious metal exploration in Birimian, Archean and Proterozoic greenstone belts. He has worked and consulted in West, Central and East Africa for the past 30 years with various companies, including Barrick Gold, Echo Bay Mines, Etruscan Resources, Anglo American, Geo Services International and Moto Goldmines. Whilst at Moto Goldmines, he led the exploration team that took the Moto gold deposit from discovery to bankable feasibility. The Moto gold deposit was later sold to Randgold Resources and AngloGold Ashanti in October 2009.
Paul Schmiede - Vice-president of Corporate Development
Paul Schmiede is a major shareholder and the vice-president of corporate development at Sarama Resources. He is a mining engineer with over 30 years of experience in mining and exploration. Before joining Sarama Resources in 2010, Schmiede was vice-president of operations and project development at Moto Goldmines. At Moto Goldmines, he managed the pre-feasibility, bankable and definitive feasibility study for the more than 22 million-ounce Moto gold project (now Kibali Gold). Whilst at Moto Goldmines, he also managed the in-country environment, community studies and pre-construction activities. Before joining Moto Goldmines, he held senior operational and management positions with Goldfields and WMC Resources.
Lui Evangelista - Chief Financial Officer
Lui Evangelista is Sarama's chief financial officer with 35 years of experience in accounting, finance and corporate governance with public companies. He has more than 20 years of experience in the mining industry - 10 years of which have been at the operational and corporate level with companies operating in Francophone Africa. Evangelista was a group financial controller and acting CFO at Anvil Mining which operated three mines in the DRC. He was an integral part of the senior management team that saw Anvil's market capitalization grow from C$100 million in 2005 to C$1.3 billion upon takeover by Minmetals in 2012.
Simon Jackson - Non-executive Director
Simon Jackson is a founder, shareholder and non-executive chairman of Sarama Resources. Jackson is a Chartered Accountant with over 30 years of experience in the mining sector. He is the Chairman of Predictive Discovery and non-executive director of African gold producer Resolute Mining. He has previously held senior management positions at Red Back Mining, Orca Gold and Beadell Resources.
Adrian Byass - Non-executive Director
Adrian Byass has more than 30 years of experience in the mining industry. He has focused his career on the economic development of mineral resources. He is skilled in economic and resource geology. Byass has experience ranging from production in gold and nickel mines to the evaluation and development of mining projects with listed and unlisted entities in multiple countries. He has also held executive and non-executive board roles on both ASX and AIM-listed companies. Byass has played key roles in a range of exploration and mining projects in Australia, Africa, North America and Europe, covering a suite of commodities including gold, base and specialty metals.
Michael Bohm - Non-executive Director
Michael Bohm is a seasoned director and mining engineer in the resources industry. His career spans roles as a mining engineer, mine manager, study manager, project manager, project director, and managing director. He has been directly involved in the development of multiple mines in the gold, nickel, and diamond industries, and made significant contributions to Ramelius Resources during its formative years. This experience is particularly important as Sarama is currently in the process of rebuilding its operations in the Eastern Goldfields region of Western Australia. He is a current director of ASX-listed Riedel Resources and has previously been a director of ASX-listed Perseus Mining, Ramelius Resources, Mincor Resources NL and Cygnus Metals.
Falco Resources
Investor Insight
Falco Resources presents a compelling investment opportunity with its high-margin Horne 5 gold project, strong partnerships, and advancing path to construction in Quebec’s prolific Rouyn-Noranda mining camp.
Overview
Falco Resources (TSXV:FPC) is a Canadian company focused on developing gold and base metal projects in the Rouyn-Noranda region of Quebec. Rouyn-Noranda is an established mining camp with a long history of exploration and development. The Noranda mining camp has historically produced 19 million ounces (Moz) of gold and 2.9 billion pounds (Blbs) of copper, and yet it is still under-explored for gold.
Falco’s principal property, Horne 5 project, holds 67,000 acres or nearly 67 percent of the total area of the entire mining camp and is located under the former Horne mine which produced 11.6 Moz of gold and 2.5 Blbs of copper. The 2021 feasibility study on the Horne 5 project suggests strong project economics with a total mine life of 15 years, after-tax NPV at 5 percent of US$761 million, and a payback period of 4.8 years, assuming gold prices at $1,600/oz. At the current gold prices of over $2,500/oz, the project economics will be even better.
In 2024, significant milestones for the company include the operating lease and indemnity agreement (OLIA) with Glencore (LON:GLEN) and the Horne 5 project’s environmental impact assessment (EIA) admissibility. Falco Resources' operating license and indemnity agreement (OLIA) with Glencore Canada will enable Falco to utilize a portion of Glencore's lands. The agreement entails establishing a technical committee comprising two representatives from Glencore and two from Falco, tasked with safeguarding the uninterrupted operations of Glencore’s Horne copper smelter. Additionally, a parallel strategic committee will be formed. Glencore canl nominate one representative to join Falco's board of directors.
The successful completion of the OLIA, coupled with life-of-mine copper-zinc concentrate offtake agreements with Glencore, positions Falco to advance its Horne 5 project towards construction. The company is currently advancing with the permitting process for the project.
Falco is continuing with the next steps related to obtaining government permits and financing for its Horne 5 project after the report filed by the Bureau d'audiences publiques sur l'environnement (BAPE). The BAPE examined the Falco Horne 5 mining project from a sustainable development perspective, requesting additional studies and analyses. More than 90 percent of the commission's opinions related to the project have already been considered, planned or initiated.
Company Highlights
- Falco Resources is a Canadian explorer of base and precious metals focused on developing its mineral properties in the Rouyn-Noranda region in Quebec, Canada.
- The company holds 67,000 acres of mining claims in the Rouyn-Noranda mining camp, accounting for nearly 67 percent of the entire mining camp.
- Rouyn-Noranda has a long history of mining and exploration. The area has established infrastructure and has been host to 50 former producers, including 20 base metal mines and 30 gold mines.
- Falco’s principal asset is the Horne 5 project which is a gold project with significant base metal by-products. It is located under the former Horne Mine which produced 11.6 Moz of gold and 2.5 billion pounds of copper from 1926 to 1976.
- The Horne 5 is a world-class deposit containing 7.6 Moz gold equivalent in measured and indicated resources and 1.7 Moz gold equivalent in inferred resources, making it a top 5 gold development project in Canada by resource size.
- The Horne 5 project represents a robust, high-margin, 15-year underground mining project with attractive economics. The 2021 feasibility study indicates after-tax NPV at 5 percent of US$761 million and after-tax IRR of 18.9 percent.
- The operating lease and indemnity agreement (OLIA) with Glencore coupled with EIA admissibility receipt from the government body positions Falco to advance its Horne 5 project towards construction.
Key Project
Horne 5 Project
The Horne 5 project is a world-class deposit located beneath the former Horne mine in the Rouyn -Noranda mining camp. Horne mine was operated by Noranda from 1926 to 1976 and produced 11.6 Moz of gold and 2.5 Blbs of copper. The Rouyn-Noranda mining camp has a rich exploration history having produced 19 Moz of gold and 2.9 Blbs of copper. The camp has hosted 50 producers including 20 base metal mines and 30 gold mines.
The Horne 5 is a world-class deposit containing 6.1 Moz gold equivalent in proven and probable reserves, 7.6 Moz gold equivalent in measured and indicated resources, and 1.7 Moz gold equivalent in inferred resources making it a top 5 gold development project in Canada by resource size.
The project boasts strong partners including Osisko Development, Osisko Gold Royalties, Glencore, and the Quebec Government. Osisko Development is a major shareholder in Falco Resources with a 16 percent stake, and the Quebec Government holds close to 7.5 percent stake in Falco.
Aside from gold, Horne 5 has significant base metal by-products. As per the feasibility study, precious metals (gold + silver) account for 75.6 percent of the mining revenue, while base metals (copper and zinc), account for 24.3 percent of the total mine revenue.
The 2021 updated feasibility study on the Horne 5 project indicates robust project economics. The feasibility study shows the project would generate an after-tax NPV at 5 percent of US$761 million and an after-tax IRR of 18.9 percent over the 15-year mine life. The production profile would average annual production of 220,300 oz gold over the life of the mine. Further, the study suggests significant copper and zinc by-product credits from the copper and zinc production, as well as the highly automated modern operations resulting in a low projected all-in sustaining cost (AISC) of $587/oz. Horne 5’s AISC is among the first quartile of global low-cost operations.
Recent news flows including the OLIA with Glencore and the Horne 5 project’s EIA admissibility are significant milestones in the advancement of the project towards development.
Falco Resources’ OLIA with Glencore Canada enables Falco to utilize a portion of Glencore's lands. The agreement entails establishing a technical committee comprising two representatives from Glencore and two from Falco, tasked with safeguarding the uninterrupted operations of Glencore’s Horne copper smelter. Additionally, a parallel strategic committee will be formed. Glencore can nominate one representative to join Falco's board of directors.
The successful completion of OLIA coupled with life-of-mine copper-zinc concentrate offtake agreements with Glencore positions Falco to advance its Horne 5 project towards development. Further, the receipt of confirmation of the admissibility of its EIA for the Horne 5 project from the Ministry of the Environment, the Fight Against Climate Change, Wildlife and Parks is a significant milestone. It provides a path forward for the development of the project.
Management Team
Luc Lessard – President, Chief Executive Officer and Director
Luc Lessard brings over 30 years of experience in the design, construction, and operation of mines. Before joining Falco, he held senior executive positions at Osisko Gold Royalties, Canadian Malartic GP (a joint venture of Agnico Eagle Mines and Yamana Gold), and Osisko Mining Corporation. At Osisko Mining Corporation, he oversaw the design, construction, and commissioning of the Canadian Malartic gold mine. Lessard has been involved in numerous surface and underground mining projects throughout his career. Lessard holds a bachelor’s degree in mining engineering from Laval University.
Anthony Glavac – Chief Financial Officer
Anthony Glavac has 25 years of experience in financial reporting, including over 15 years in the mining industry. Before joining Falco, he served as the director of financial reporting and internal controls at Dynacor Gold Mines and as the interim chief financial officer at Alderon Iron Ore. Glavac was previously the senior manager at KPMG, where he worked with a diverse portfolio of public and private companies, offering services such as audit, taxation, strategic advisory, and assistance with public offerings. Glavac is also engaged with other public companies within the mining sector.
Helene Cartier – Vice-president Environment, Sustainable Development and Community Relations
Helene Cartier possesses over 20 years of expertise in the environmental field. She began her mining career as part of the Cambior team before transitioning to the role of vice-president of environmental services and sustainable development at Osisko Mining. There, she played a pivotal role in the development and commissioning phases of the Canadian Malartic gold mine. She has served on the board of directors of several public and private companies.
Mireille Tremblay – Vice-president Legal Affairs and Corporate Secretary
Mireille Tremblay possesses more than 25 years of experience in business law, primarily in securities, mergers and acquisitions, corporate finance, and governance. Before joining Falco in January 2021 as the director of legal affairs, Tremblay served as a legal advisor to clients across diverse industries, including the mining sector. She advocated for companies and investors involved in mining transactions in Africa, notably during the construction of a gold mine in Burkina Faso and in negotiations with the Ivorian government. Additionally, she has represented numerous companies, underwriters, and investors in various contexts, including public offerings and private placement financings, both domestically and internationally. Tremblay holds a law degree from the University of Montreal.
Mario Caron – Independent Chair
Mario Caron is a mining executive with over 40 years of experience in the mining industry in senior executive and board positions. His experience was gained nationally and internationally in both underground and open pit operations. As CEO of public companies, he secured mining licenses and various permits in numerous jurisdictions. From 2016 to 2023, he was the Chairman of New Moly LLC. (formerly known as Alloycorp Mining), a privatized company since August 2016 with a molybdenum deposit in British Columbia. Caron received his Bachelor of Engineering, Mining at McGill University and is a retired member of the Association of Professional Engineers of Ontario and of the Ordre des ingénieurs du Québec.
Alexander Dann – Non-independent Director
Alexander Dann is a chartered professional accountant with over 30 years of experience leading financial operations and strategic planning for multinational public companies, primarily in the mining and manufacturing sectors. In February 2021, he was appointed chief financial officer and vice president, finance of Osisko Development. Before that, Dann served as chief financial officer of The Flowr Corporation from November 2017 to March 2020, where he successfully guided such corporation from a small private company to a TSX Venture Exchange publicly traded corporation. Prior to that, he was chief financial officer of Avion Gold and Era Resources until their acquisitions by Endeavour Mining Corporation and The Sentient Group, respectively. Dann also held senior finance roles with Falconbridge. (now part of Glencore Canada Corporation), Rio Algom Limited (now part of BHP Billiton) and Litens Automotive Partnership (a group within Magna International Inc.). Dann is the nominee of Osisko Development on the Corporation’s Board of Directors pursuant to the Investor Rights Agreement entered into between the Corporation and Osisko Development on November 27, 2020 (the “Investor Rights Agreement”). Dann obtained his Chartered Accountant designation in 1995 and holds a Bachelor’s degree in Business Administration from Université Laval in Québec City.
Paola Farnesi – Independent Director
Paola Farnesi is a senior financial professional with over 30 years of experience in corporate finance, financial reporting, M&A and risk management. She is currently vice president and treasurer of Domtar Corporation, responsible for negotiating and arranging $2.5 billion in corporate financings, overseeing an insurance portfolio of $50 billion in insurable values and managing the investments of pension fund assets of $8 billion. From 1994 to 2008, Farnesi held several other leadership positions at Domtar Corporation, including vice president of internal audit, where she was responsible for the implementation and subsequent compliance efforts related to Sarbanes-Oxley. Prior to joining Domtar Corporation, Farnesi worked at Ernst & Young for the assurance group in Montréal. Farnesi holds a Bachelor of Commerce and a Graduate degree in Public Accountancy from McGill University, is a member of the Chartered Professional Accountants of Québec and obtained the ICD.D designation from the Institute of Corporate Directors.
Chantal Sorel – Independent Director
Chantal Sorel is a corporate director. She has over 35 years of experience in general management with full profit and loss responsibility, project financing, project management, operations, strategic development, business development, mergers and acquisitions, in the industries of mining and metallurgy, power, infrastructure, industrial facilities, rail and transit. Sorel held the position of Vice President, Airport Infrastructures at Aéroports de Montréal from April 2023 to February 2024, after being an adviser to the airport from 2020 to 2023. Previously, she was executive vice president and managing director of capital at AtkinsRéalis (formerly known as the SNC-Lavalin Group) from 2016 to 2019 where she was responsible for the project financing and asset management of a $20 billion infrastructure and industrial asset portfolio. Sorel holds a degree in architecture from Université de Montréal and a master’s degree in project management from Université du Québec à Montréal and completed the Director Education Program jointly offered by the Institute of Corporate Directors, the McGill Executive Institute and the Rotman School of Management at the University of Toronto.
Sean Roosen - Special Advisor
Sean Roosen is a founder of Osisko Mining Corporation and played a central role in the discovery, financing, and development of the Canadian Malartic mine, one of Canada’s largest gold producers. He is currently executive chair and CEO of Osisko Development and previously served as founder, executive chair, and CEO of Osisko Gold Royalties. With more than 44 years of mining industry experience, he has been recognized globally for his leadership, including being named Mines and Money Americas’ “Best CEO in North America” (2017) and one of the “Top 20 Most Influential Individuals in Global Mining.” Roosen is a graduate of the Haileybury School of Mines.
John Burzynski - Special Advisor
John Burzynski is executive chair of Osisko Metals and former Chair, CEO, and director of Osisko Mining, where he led the discovery, development, and $2.2 billion sale of the Windfall gold project to Gold Fields Ltd. A co-founder of Osisko Mining Corporation, he was instrumental in the development and sale of the Canadian Malartic mine. With over 35 years of international mining experience, Burzynski has received multiple industry awards, including PDAC’s “Prospector of the Year” (2007, 2024) and the Northern Miner’s “Mining Man of the Year” (2009). He holds a B.Sc. (Honours) in geology from Mount Allison University and an M.Sc. in exploration and mineral economics from Queen’s University.
