Farallon Resources Ltd.
TSX : FAN

Farallon Resources Ltd.

January 24, 2007 08:58 ET

Farallon's 2007 Exploration Program Begins

Drilling to Focus on Expansion of G-9 and Discovery of Additional G-9-Style Deposits

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 24, 2007) - Dick Whittington, President and CEO of Farallon Resources Ltd. (TSX:FAN), is pleased to announce that exploration drilling has recommenced at the Company's Campo Morado polymetallic (zinc, gold, silver, copper, lead) project in Guerrero State, Mexico. Crews remobilized to site earlier this month and drilling began on January 18, 2007.

The Company's 2007 program will focus on advancing exploration and mine development activities. A 40,000-meter surface exploration program is planned with two objectives: to find additional high grade resources at G-9 and to test other targets in order to find another G-9 style deposit. To meet the first objective, drilling will focus in the immediate vicinity of the G-9 deposit, initially along the northern edge of the felsic volcanic complex. To meet the second objective, known targets will be drill tested proceeding in a southwesterly direction and following the trend of the five deposits discovered at Campo Morado to date. In addition, structural and stratigraphic concepts at the property scale will be drill tested in an effort to find another G-9-style deposit.

Work focused toward advancing the G-9 deposit to production by July 2008 will continue concurrently with exploration activities. Engineering studies associated with mine planning and design, equipment acquisition and site preparation activities will also take place. For example, the Company recently announced that it had acquired a fully-autogenous grinding mill, which will be transported to site in early 2008. It also expects to place firm orders for all remaining principal items of process equipment by the end of February 2007 to complete the purchases of all major equipment for the G-9 mill.

Excavation of a 4.5 m by 4.5 m exploration decline, initiated in August 2006 and designed to accommodate a production rate of 1500 tonnes per day, is currently advancing toward the high grade southeast zone of the G-9 deposit. Approximately 1,400 meters of decline and 400 meters of underground development in two parallel 4.5 x 4.5 m crosscuts complete with drill stations are planned, followed by a 10,000-meter infill drilling program at a 25-m hole spacing to outline mineralization in measured and indicated classifications.

Dick Whittington said:

"I am really excited about this year's drilling program. Exploration is one of the two key corporate objectives of the Company going forward. Our goal is to find another G-9 type deposit. Exploration at Campo Morado has an extraordinary record of discovery, therefore I am confident that we will meet further success in 2007."

For further details on Farallon Resources Ltd. and its Campo Morado property, please visit the Company's website at www.farallonresources.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.

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, including changes in government policies regarding mining and natural resource exploration and exploitation, and will also 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 underground workings 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, Investors should review the Company's annual Form 20-F filing with the United States Securities and Exchange Commission and its home jurisdiction filings that are available at www.sedar.com.

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

Contact Information

  • Farallon Resources Ltd.
    Shawn Wallace
    Investor Services
    (604) 684-6365 or Toll Free: 1-800-667-2114
    (604) 684-8092 (FAX)
    Website: www.farallonresources.com