January 20, 2022 (ACCESSWIRE via COMTEX) -- VANCOUVER, BC / ACCESSWIRE / January 20, 2022 / FALCON GOLD CORP. /zigman2/quotes/202958847/delayed CA:FG +10.00% (gr:3FA)(otcqb:FGLDF); ("Falcon" or the "Company") is pleased to report it has received final TSX Venture approval to move ahead on the option to purchase the Viernes project located 122km SE of Antofagasta City in Northern Chile. The claims encompass 13 claim blocks covering 3,300 Ha. The western portion of the project offers prospectivity for epithermal gold veins as evidenced by outcrops of the Chile-Alemania Paleocene volcano-stratigraphic sequence, which is the same host rock at the El-Peñón Gold Deposit owned by Yamana Gold. Additionally, Barrick Gold in 2015 sold a 50% stake in Zaldívar Mine for a $1.005 Billion in cash forming a partnership with Antofagasta PLC one of the worlds leading copper companies. Antofagasta has an outstanding track record of building and operating mines in Chile, the Zaldívar project is approximately 35kms NE of our claims.
The Viernes project is located at moderate elevation of approximately 2000 meters above sea-level and is 5km east of Yamana Gold's highly profitable El-Peñón low sulfidation gold and silver mine, and 35kms southeast of the world class Escondida-Zaldívar copper hub. The project has year-round access via paved and gravel roads from the mining capital of Chile, known as Region II, Antofagasta.
The Viernes claim block presents Falcon a tremendous opportunity to explore for potential bonanza-grade with epithermal low to intermediate sulfidation gold-silver, and porphyry copper-moly mineralization in one of south Americas greatest mineral endowed Paleocene-Eocene belts. The project is located within a world class cluster with extensive development by Yamana, BHP-Rio Tinto, Antofagasta Minerals amongst others. The property is highly prospective and is adjacent to the epithermal vein-hosted Gold-Silver producing El-Peñón mine in which Viernes may host similar geochemical and structural features. Yamana's latest 43-101 complaint resources and reserves estimates published in March 2021 states total proven and probable mineral reserves of 921,000 ounces of gold and 29.2 million ounces of silver.
Since the 1990's this area has produced 30.6 million tons of copper - 57 times the annual Canadian production, 9.2 million Ounces of Gold - 1.5 Times the Canadian production, 129.3 million ounces of Silver - 8.6 times the Canadian annual silver production and has generated multiple discoveries.
The Definitive Agreement
On October 20, 2021, the Company announced it had signed an MOU to acquire the Viernes project, this allowed the Company enough time to complete the necessary due diligence to move forward on the acquisition. The Company has agreed to make share payments over a 4-year period totaling 500,000 shares and issue 500,000 share purchase warrants. Each warrant will entitle the vendor to purchase one Falcon common share for a period of 24 months for a purchase price set on each date of issuance at 125% of the closing with a weighted average -with a minimum 10 cent price. During the 4-year option period Falcon is to make minimum expenditures on the property amounting to US $250,000.
Upon completion of share payments and expenditures Falcon will hold an 80% interest and the vendors will retain 20% ownership in the property. Following which for a period of 30 months, Falcon will have the exclusive right to purchase the Vendors 20% ownership in the property (Falcon's total Ownership of 100% in the property) for a further payment of US. 1.5 million which includes a 1% NSR buy back with the Vendors retaining a 1%.
Dr. Daniel Rubiolo, P. Geo., who is a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects has reviewed and approved the technical content of this news release.
The QP has not completed sufficient work to verify the historical information on the Viernes property, particularly regarding historical exploration, neighbouring companies, and government geological work. The news indicates the exploration potential of the property but may not be representative of expected results.
About Falcon Gold Corp.
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 southeast of Agnico Eagle's Hammond Reef Gold Deposit which has currently estimated 3.32 million ounces of gold (123.5 million tonnes grading 0.84 g/t gold) mineral reserves, and 2.3 million ounces of measured and indicated mineral resources (133.4 million tonnes grading 0.54 g/t gold). The Hammond Reef gold property lies on the Hammond shear zone, which is a northeast-trending splay off the Quetico Fault Zone ("QFZ") and may be the control for the gold deposit. The Central Gold property lies on a similar major northeast-trending splay of the QFZ.
The Company holds 8 additional projects. The Esperanza Gold/Silver/Copper mineral concessions located in La Rioja Province, Argentina. The Springpole West Property in the world-renowned Red Lake mining camp; a 49% interest in the Burton Gold property with Iamgold near Sudbury Ontario; and in B.C., the Spitfire-Sunny Boy, Gaspard Gold claims; and most recently the Great Burnt, Hope Brook, and Baie Verte acquisitions adjacent to First Mining, Benton-Sokoman's JV, and Marvel Discovery in Central Newfoundland.
Falcon Gold Corp.