Farallon Resources Ltd.
TSX : FAN

Farallon Resources Ltd.

May 17, 2006 13:15 ET

Farallon Announces Further Metallurgical Test Results for the G-9 Deposit, Campo Morado, Mexico; Testwork Continues to Indicate Amenability to Conventional Flotation

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 17, 2006) - Dick Whittington, President & CEO of Farallon Resources Ltd. (TSX:FAN), is pleased to announce further results from recent flotation tests conducted on the G-9 deposit at its polymetallic (zinc, gold, silver, copper, lead) project at Campo Morado, Guerrero State, Mexico. These new results affirm the promising initial results announced by the Company (News Release Dated April 30, 2006). In addition to a marketable zinc concentrate using conventional flotation processes, the new results indicate the potential to also produce saleable copper concentrates from G-9 that would add further revenue from a mine at G-9. A third, more comprehensive, phase of testing is now underway; the results of these tests will be reported on when available.

Twelve samples were taken from the G-9 deposit, representing different grades and zones of mineralization across the deposit. The samples were prepared by ALS Chemex in Guadalejara, Mexico and G&T Laboratories (G&T) in Kamloops, British Columbia, Canada. The samples were crushed, screened and a flotation feed was prepared. Modal and chemical analyses were undertaken prior to bench scale flotation tests. The flotation tests were carried out by G&T in Kamloops.

The new results continue to indicate that a marketable zinc concentrate can be produced at G-9. Zinc concentrate grades of 57% to 47% were produced with recoveries ranging from 92% to 62%, with one sample not making grade. In this series of tests, copper concentrates were also produced at various grades and recoveries. Copper concentrate grades of 26% to 20% were produced with copper recoveries ranging from 83% to 50%, with two samples not making grade. A preliminary flowsheet and the test results on each sample are attached. Also attached are the results of the initial four tests announced previously as well as the results of similar testwork carried out on a composite sample of Reforma and Naranjo deposits in November 1997. The full report on the current test program is posted on the Company's website.

As with the initial results, these also represent a very significant departure from those received on any of the other deposits at Campo Morado. Although still preliminary, they continue to show that the G-9 deposit differs, both mineralogically and metallurgically, from the Reforma, Naranjo and El Largo deposits. The results indicate that a more conventional flotation plant can indeed be contemplated for processing the mineralization at G-9. Testing, currently underway, is expected to further expand our knowledge base in this regard and, if results continue to support a flotation based mine at G-9, the Company will quickly incorporate this processing option into the development plans.

Dick Whittington said:

"This is further confirmation that the previously announced "breakthrough" in the processing area of the project is real. If confirmed in the more comprehensive and detailed testwork now underway, the Company will be formally adopting a flotation based mine at G-9 for initial development at Campo Morado. Coupled with the high grade nature of the G-9 deposit, this will reduce the capital and technical risk of the project and offer opportunities for accelerated mine development. The data indicates that the corporate mantra of a "Mine at G-9" is the correct course to follow. We are excited by these results and look forward to refining them as we go forward. Once again, I would like to commend the excellent work done by G&T and Peter Taggart."

The in-house qualified person for the drilling program and selection of samples for metallurgical testwork at Campo Morado is Daniel Kilby, P.Eng. The independent qualified person in charge of the flotation testwork is Peter Taggart, P.Eng. ALS Chemex is the analytical laboratory for the project; sample preparation is done in Guadalajara, Mexico and analysis is done in Vancouver, BC. All samples are assayed for gold by fire assay fusion with a gravimetric or Atomic Absorption (AA) finish. Silver, copper, lead, zinc and 27 to 30 additional elements are determined for all samples by acid digestion, followed by an AA or ICP finish. Duplicates are analyzed by Acme Analytical Laboratories in Vancouver.

Farallon has a strong cash position of $6.8 million that will enable the Company to complete its current drilling program and conclude a Preliminary Assessment of the project by mid year.

ON BEHALF OF THE BOARD OF DIRECTORS

J.R.H. (Dick) Whittington, President & CEO

Forward Looking Information

This release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. The likelihood of future mining at Campo Morado is subject to a large number of risks and will require achievement of a number of technical, economic and legal objectives, including obtaining necessary mining and construction permits, completion of pre-feasibility and final feasibility studies, preparation of all necessary engineering for pits and processing facilities as well as receipt of significant additional financing to fund these objectives as well as funding mine construction. Such funding may not be available to the Company on acceptable terms or on any terms at all. There is no known ore at Campo Morado and there is no assurance that the mineralization at Campo Morado will ever be classified as ore. For more information on the Company and the risk factors inherent in its business, investors should review the Company's Annual Information Form at www.sedar.com.

To view the Flotation Test Flowsheet please click on the following link: http://www.ccnmatthews.com/docs/0517far.jpg



NEW FLOTATION TESTWORK RESULTS

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Summary of Additional Flotation Test Results - G-9
--------------------------------------------------------------------
Grade
--------------------------------
Product Cu % Pb % Zn % Ag g/t Au g/t
--------------------------------------------------------------------
KM1738-43 Feed 1.6 0.6 13.9 62 1.2
-----------------------------------------------------
G9 Group 1 Copper Concentrate 24.0 6.9 3.8 382 3.8
-----------------------------------------------------
Zinc Concentrate 0.5 0.2 51.6 66 0.8
--------------------------------------------------------------------
KM1738-39 Feed 1.2 4.1 7.0 594 6.4
-----------------------------------------------------
G9 Group 2 Copper Concentrate 6.9 27.0 3.9 2237 28.6
-----------------------------------------------------
Zinc Concentrate 0.7 2.2 54.3 360 3.6
--------------------------------------------------------------------
KM1738-44 Feed 1.3 0.6 10.9 171 4.7
-----------------------------------------------------
G9 Group 3 Copper Concentrate 20.7 6.0 3.5 1373 28.8
-----------------------------------------------------
Zinc Concentrate 0.7 0.4 52.4 154 2.3
--------------------------------------------------------------------
KM1738-45 Feed 1.3 1.0 6.9 129 0.8
-----------------------------------------------------
G9 Group 4 Copper Concentrate 22.1 17.7 5.2 1215 12.0
-----------------------------------------------------
Zinc Concentrate 0.8 0.7 59.3 130 1.0
--------------------------------------------------------------------
KM1772-27 Flotation Feed 0.4 0.5 4.8 67 1.7
-----------------------------------------------------
Composite 2 Copper Concentrate 24.3 6.1 2.0 320 11.9
-----------------------------------------------------
Zinc Concentrate 0.7 0.8 53.6 122 1.7
--------------------------------------------------------------------
KM1772-28 Flotation Feed 1.6 1.1 2.4 219 3.2
-----------------------------------------------------
Composite 3 Copper Concentrate 16.4 7.1 2.1 928 10.0
-----------------------------------------------------
Zinc Concentrate 1.4 1.8 51.3 318 3.2
--------------------------------------------------------------------
KM1772-29 Flotation Feed 0.6 0.6 6.4 99 1.8
-----------------------------------------------------
Composite 4 Copper Concentrate 20.1 10.6 3.4 886 22.1
-----------------------------------------------------
Zinc Concentrate 0.5 0.6 48.4 210 1.5
--------------------------------------------------------------------
KM1772-30 Flotation Feed 2.8 1.6 7.6 251 2.5
-----------------------------------------------------
Composite 5 Copper Concentrate 21.7 8.1 2.7 910 4.2
-----------------------------------------------------
Zinc Concentrate 0.8 1.1 53.4 220 1.2
--------------------------------------------------------------------
KM1772-31 Flotation Feed 1.5 0.8 15.7 188 2.6
-----------------------------------------------------
Composite 6 Copper Concentrate 26.3 5.3 2.4 718 14.4
-----------------------------------------------------
Zinc Concentrate 0.4 0.6 52.6 176 2.1
--------------------------------------------------------------------
KM1772-32 Flotation Feed 0.6 2.2 3.2 254 4.2
-----------------------------------------------------
Composite 7 Copper Concentrate 21.2 10.9 1.3 1082 16.7
-----------------------------------------------------
Zinc Concentrate 1.1 3.2 27.9 340 6.6
--------------------------------------------------------------------
KM1772-33 Flotation Feed 2.0 1.3 5.4 352 4.9
-----------------------------------------------------
Composite 8 Copper Concentrate 24.8 6.2 2.2 826 8.7
-----------------------------------------------------
Zinc Concentrate 1.5 1.1 49.1 344 5.2
--------------------------------------------------------------------
KM1772-34 Flotation Feed 1.6 0.6 8.8 103 2.6
-----------------------------------------------------
Composite 9 Copper Concentrate 25.2 5.2 4.2 520 7.0
-----------------------------------------------------
Zinc Concentrate 0.6 0.5 56.9 110 0.9
--------------------------------------------------------------------
KM1772-35 Flotation Feed 1.5 1.0 8.7 146 4.0
-----------------------------------------------------
Composite 10 Copper Concentrate 25.5 7.0 3.1 548 18.8
-----------------------------------------------------
Zinc Concentrate 0.6 0.9 52.3 124 2.2
--------------------------------------------------------------------
KM1772-36 Flotation Feed 0.9 1.0 5.4 677 16.5
-----------------------------------------------------
Composite 11 Copper Concentrate 23.5 8.9 2.8 2850 90.8
-----------------------------------------------------
Zinc Concentrate 0.8 0.9 53.0 706 10.7
--------------------------------------------------------------------
KM1772-37 Flotation Feed 0.7 0.9 3.2 122 2.7
-----------------------------------------------------
Composite 12 Copper Concentrate 22.4 6.4 2.0 914 11.6
-----------------------------------------------------
Zinc Concentrate 0.8 1.4 47.1 198 2.5
--------------------------------------------------------------------
KM1772-38 Flotation Feed 1.9 2.8 20.0 175 2.1
-----------------------------------------------------
Composite 13 Copper Concentrate 22.2 16.9 4.6 492 3.9
-----------------------------------------------------
Zinc Concentrate 0.5 0.9 55.3 110 0.9
--------------------------------------------------------------------

--------------------------------------------------------------------
Recovery
--------------------------------
Product Cu % Pb % Zn % Ag % Au %
--------------------------------------------------------------------
KM1738-43 Feed 100 100 100 100 100
-----------------------------------------------------
G9 Group 1 Copper Concentrate 80 62 1 34 18
-----------------------------------------------------
Zinc Concentrate 6 8 78 22 14
--------------------------------------------------------------------
KM1738-39 Feed 100 100 100 100 100
-----------------------------------------------------
G9 Group 2 Copper Concentrate 62 69 6 40 47
-----------------------------------------------------
Zinc Concentrate 5 5 69 5 5
--------------------------------------------------------------------
KM1738-44 Feed 100 100 100 100 100
-----------------------------------------------------
G9 Group 3 Copper Concentrate 60 41 1 30 23
-----------------------------------------------------
Zinc Concentrate 10 13 88 16 9
--------------------------------------------------------------------
KM1738-45 G9 Feed 100 100 100 100 100
-----------------------------------------------------
Group 4 Copper Concentrate 48 50 2 27 40
-----------------------------------------------------
Zinc Concentrate 5 6 75 9 10
--------------------------------------------------------------------
KM1772-27 Flotation Feed 100 100 100 100 100
-----------------------------------------------------
Composite 2 Copper Concentrate 50 11 0 4 7
-----------------------------------------------------
Zinc Concentrate 9 10 71 12 7
--------------------------------------------------------------------
KM1772-28 Flotation Feed 100 100 100 100 100
-----------------------------------------------------
Composite 3 Copper Concentrate 72 46 6 30 22
-----------------------------------------------------
Zinc Concentrate 3 5 67 5 3
--------------------------------------------------------------------
KM1772-29 Flotation Feed 100 100 100 100 100
-----------------------------------------------------
Composite 4 Copper Concentrate 55 25 1 14 19
-----------------------------------------------------
Zinc Concentrate 9 10 74 21 8
--------------------------------------------------------------------
KM1772-30 Flotation Feed 100 100 100 100 100
-----------------------------------------------------
Composite 5 Copper Concentrate 83 53 4 39 18
-----------------------------------------------------
Zinc Concentrate 3 8 80 10 5
--------------------------------------------------------------------
KM1772-31 Flotation Feed 100 100 100 100 100
-----------------------------------------------------
Composite 6 Copper Concentrate 75 28 1 17 24
-----------------------------------------------------
Zinc Concentrate 8 21 92 26 22
--------------------------------------------------------------------
KM1772-32 Flotation Feed 100 100 100 100 100
-----------------------------------------------------
Composite 7 Copper Concentrate 28 4 0 3 3
-----------------------------------------------------
Zinc Concentrate 3 2 12 2 2
--------------------------------------------------------------------
KM1772-33 Flotation Feed 100 100 100 100 100
-----------------------------------------------------
Composite 8 Copper Concentrate 52 20 2 10 7
-----------------------------------------------------
Zinc Concentrate 5 6 62 7 7
--------------------------------------------------------------------
KM1772-34 Flotation Feed 100 100 100 100 100
-----------------------------------------------------
Composite 9 Copper Concentrate 73 38 2 23 12
-----------------------------------------------------
Zinc Concentrate 5 9 79 13 4
--------------------------------------------------------------------
KM1772-35 Flotation Feed 100 100 100 100 100
-----------------------------------------------------
Composite 10 Copper Concentrate 71 28 1 16 19
-----------------------------------------------------
Zinc Concentrate 5 10 71 10 6
--------------------------------------------------------------------
KM1772-36 Flotation Feed 100 100 100 100 100
-----------------------------------------------------
Composite 11 Copper Concentrate 58 20 1 9 12
-----------------------------------------------------
Zinc Concentrate 7 7 77 8 5
--------------------------------------------------------------------
KM1772-37 Flotation Feed 100 100 100 100 100
-----------------------------------------------------
Composite 12 Copper Concentrate 55 12 1 13 7
-----------------------------------------------------
Zinc Concentrate 5 8 69 8 4
--------------------------------------------------------------------
KM1772-38 Flotation Feed 100 100 100 100 100
-----------------------------------------------------
Composite 13 Copper Concentrate 74 38 1 18 12
-----------------------------------------------------
Zinc Concentrate 8 10 85 19 13
--------------------------------------------------------------------


PREVIOUSLY ANNOUNCED FLOTATION TESTWORK RESULTS

--------------------------------------------------------------------
Summary of Preliminary Flotation Test Results - G-9
--------------------------------------------------------------------
Grade
--------------------------------
Product Cu % Pb % Zn % Ag g/t Au g/t
--------------------------------------------------------------------
Sample 1 Flotation Feed 1.6 0.6 13.8 62 1.2
-----------------------------------------------------
Test 43 Bulk concentrate 23.3 7.0 3.8 382 3.8
-----------------------------------------------------
Zinc concentrate 0.5 0.2 51.3 66 0.8
--------------------------------------------------------------------
Sample 2 Flotation Feed 1.2 4.1 6.9 594 6.3
-----------------------------------------------------
Test 39 Bulk concentrate 6.9 27.0 3.9 2,237 28.6
-----------------------------------------------------
Zinc concentrate 0.7 2.2 52.8 383 3.8
--------------------------------------------------------------------
Sample 3 Flotation Feed 1.3 0.6 10.6 171 4.7
-----------------------------------------------------
Test 44 Bulk concentrate 20.4 6.0 3.5 1,373 28.8
-----------------------------------------------------
Zinc concentrate 0.7 0.4 50.5 154 2.3
--------------------------------------------------------------------
Sample 4 Flotation Feed 1.3 1.0 6.7 129 0.9
-----------------------------------------------------
Test 45 Bulk concentrate 21.9 17.7 5.2 1,215 12.0
-----------------------------------------------------
Zinc concentrate 0.8 0.7 57.2 130 1.0
--------------------------------------------------------------------

--------------------------------------------------------------------
Recovery
--------------------------------
Product Cu % Pb % Zn % Ag % Au %
--------------------------------------------------------------------
Sample 1 Flotation Feed 100 100 100 100 100
-----------------------------------------------------
Test 43 Bulk concentrate 79 62 2 34 18
-----------------------------------------------------
Zinc concentrate 7 8 78 23 14
--------------------------------------------------------------------
Sample 2 Flotation Feed 100 100 100 100 100
-----------------------------------------------------
Test 39 Bulk concentrate 62 69 6 40 48
-----------------------------------------------------
Zinc concentrate 5 5 68 5 5
--------------------------------------------------------------------
Sample 3 Flotation Feed 100 100 100 100 100
-----------------------------------------------------
Test 44 Bulk concentrate 60 41 1 31 23
-----------------------------------------------------
Zinc concentrate 10 13 87 17 9
--------------------------------------------------------------------
Sample 4 Flotation Feed 100 100 100 100 100
-----------------------------------------------------
Test 45 Bulk concentrate 48 50 2 27 40
-----------------------------------------------------
Zinc concentrate 5 6 74 9 10
--------------------------------------------------------------------


HISTORICAL FLOTATION TESTWORK RESULTS

--------------------------------------------------------------------
Summary of 1997 Data - Reforma/Naranjo Composite
--------------------------------------------------------------------
Grade
--------------------------------
Product Cu % Pb % Zn % Ag g/t Au g/t
--------------------------------------------------------------------
Feed 1.0 1.1 3.4 158 3.1
--------------------------------------------------------------------
Copper concentrate 26.1 5.9 3.1 683 7.4
--------------------------------------------------------------------
Bulk concentrate 5.8 15.5 2.7 1,156 44.0
--------------------------------------------------------------------
Zinc concentrate 1.7 1.0 48.0 215 3.5
--------------------------------------------------------------------

--------------------------------------------------------------------
Recovery
--------------------------------
Product Cu % Pb % Zn % Ag % Au %
--------------------------------------------------------------------
Feed 100 100 100 100 100
--------------------------------------------------------------------
Copper concentrate 37 8 1 6 3
--------------------------------------------------------------------
Bulk concentrate 9 23 1 12 23
--------------------------------------------------------------------
Zinc concentrate 7 4 59 6 5
--------------------------------------------------------------------



No regulatory authority has approved or disapproved the information contained in this news release.

Contact Information

  • Farallon Resources Ltd.
    Investor Services
    (604) 684-6365 or within North America at 1-800-667-2114
    (604) 684-8092 (FAX)
    www.farallonresources.com