SOURCE: Falco Resources Ltd

Falco Resources Ltd

January 29, 2015 07:30 ET

Falco Announces High Grade Copper at Newbec

Four New Discoveries From 2014 Exploration Program

ROUYN-NORANDA, QC--(Marketwired - January 29, 2015) - Falco Resource Ltd. ("Falco") (TSX VENTURE: FPC) today reported that its 2014 field exploration program has made four new gold and base metal discoveries within its 740 square kilometre land package in Quebec's Rouyn-Noranda mining camp.

Highlights

  • Newbec - Surface sampling extended known mineralization (up to 15.7% copper) and discovered a new copper, nickel and platinum group metals (PGEs) showing
  • Flavrian - Surface samples extended historic gold showings, revealing an abundance of near surface opportunities and expansion potential
  • Lac Laynes - Drilling intersected 2 new zones returning 1.2 g/t gold over 3.8m from 51.2 to 55m downhole and 0.79 g/t gold over 14m from 91 to 105m downhole
  • Tromac - Outcrop sampling returned high-grade assays, including 25.9 g/t and 20.7 g/t gold

"These most recent discoveries once again demonstrate the tremendous blue sky potential of Falco's dominant land position in the Rouyn-Noranda mining camp," said Trent Mell, President and CEO. "As we continue to advance the Horne Project, Newbec will be a priority exploration target, given its prospectivity for copper-nickel-PGEs, along with the Lac Hervé and Rimo base metal properties."

The $2.2 million 2014 regional exploration program tested 25 different projects within the Rouyn-Noranda mining camp and outside the Horne Project properties (Figure 1). Falco completed 180 line kilometres of geophysics (IP and EM) and 28 drillholes totalling 7,457 metres. Results from work on the Lac Hervé and Rimo properties are contained in a November 20, 2014 news release.

Fieldwork was designed to test early stage prospects and satisfy land assessment obligations. Prospecting, outcrop stripping, establishing exploration grids, ground geophysics and diamond drilling were part of the program. Many of the drillholes were subsequently surveyed by borehole EM systems. 

Newbec (Cu-Ni-Au-PGE)

The Newbec property is 13 kilometres north of Rouyn-Noranda and includes a former mine that produced 278 tons of high-grade (6.83%) copper in 1930. Initial field activities consisted of prospecting, outcrop stripping and sampling.

Outcrop sampling defined the copper-gold mineralisation as being more laterally extensive around the old mine workings than previously known and warrant follow up. Grab samples returned several highly anomalous assays of up to 15.7% copper, 0.4% zinc and 2.1 g/t gold. The best copper values are presented in Table 1.

Table 1 - Newbec Grab Samples

   
Sample Copper %
3018 1.46
3067 3.71
6466 0.88
6467 0.86
6468 0.67
6471 2.33
6472 0.50
6474 15.72
60490 1.22
60492 1.80
  

Prospecting also generated a new copper-nickel showing anomalous in platinum and palladium. The showing is hosted by a gabbro dyke several hundred meters southeast of the historical copper workings. Channel sample highlights are presented in Table 2.

Table 2 - Newbec Channel Sample Highlights

         
Sample Copper (%) Length (m) Nickel (%) Length (m)
RN1 0.14 3.00    
RN2 0.21 10.00    
RN3 0.37 6.00 0.10 4.00
RN4 0.26 8.00    
RN5 0.25 8.00 0.14 2.00
RN6 0.13 3.00    
RN7 0.22 3.50 0.11 1.00
RN8 0.55 3.00    
RN9 0.59 2.00 0.25 1.00
RN12 0.39 3.00 0.18 2.00
RN13 0.31 4.00 0.17 3.00
     

Flavrian District

Falco believes that the Flavrian district is a primary area for gold exploration in the Rouyn-Noranda camp, given the region's unique underexplored nature relative to the rest of the mining camp. Located approximately 15 kilometres northwest of Rouyn-Noranda, this extensive property covers most of the Flavrian synvolcanic intrusion and bordering volcanic stratigraphy to the west. Several gold and base metal prospects and four former gold producers lie within the district including Silidor (3 Mt @ 5.08 g/t gold), Elder (2 Mt @ 5.33 g/t gold), Beauchemin (1.7 Mt @ 4.82 g/t gold) and Quesabe (90,000 tons at an average grade of 10 g/t gold).(1)

(1) These numbers are historic in nature and Falco has not independently verified them.

Falco is the first company to have consolidated the land position and is assessing the district's potential for near-surface, large tonnage (bulk mineable) opportunities. Despite some production history, the district has lacked exploration activity commensurate with the number of regional gold bearing structures and broad distribution of gold showings and deposits.

Nora Lake East (Au)

The Nora Lake East sector of the Flavrian District was tested given its strategic location along strike of the former producing Beauchemin gold mine. Historical sampling had confirmed anomalous gold mineralization associated with area outcrops. Follow-up surface grab sampling by Falco (Figure 2) confirmed and extended some of the known showings, effectively showcasing the abundance of near surface opportunities as well as their expansion potential. Highlights of that sampling are summarized in Table 3.

Table 3 - Nora Lake East Grab Samples

   
Sample Gold (g/t)
2538 0.36
3125 30.00
3126 0.30
3194 0.71
6033 0.50
6031 2.45
6145 17.80
6147 10.60
6148 0.59
  

Lac Laynes (Au)

In 2014, two holes were drilled at Lac Laynes in a previously unexplored area testing two airborne EM anomalies. One of the holes intersected 2 zones within a fault bounded brecciated andesite returning 1.2 g/t gold over 3.8 m in the upper zone and a second lower zone intersection of 0.79 g/t gold over 14.0 m, including 1.47 g/t gold over 6.45 m, and including 3.25 g/t gold over 1.2 m. Lac Laynes is an important gold discovery for the company and further demonstrates that the western camp is well deserving of its status as a true gold domain.

Tromac (Au)

Tromac is about 10 kilometres northeast of Rouyn-Noranda and lies along the contact zone separating the Lac Dufault intrusion from felsic volcanic rocks to the east. Field work concentrated on locating surface showings of mineralized zones described in historical drilling (1946-47) with reported intersections over 1 ounce per ton gold. Prospecting was successful in locating mineralized outcrops related to surface projections of the historical intersections. Of the 58 grab samples collected, 9 have values greater than 100 ppb gold including 25.9 g/t gold and 20.7 g/t gold. Mineralization is associated with quartz veins that cut the intrusion.

Next Steps

The Newbec discovery will be a priority exploration target in 2015 along with the Lac Hervé and Rimo properties, given historical high grade copper production (6.83% Cu) and its prospectivity for gold, nickel and PGEs. Computer modelling of the Newbec mineralized zones is nearing completion with the goal of identifying expansion opportunities of the copper-rich zones. A drill campaign is expected to follow once this work is completed.

The Flavrian District has quickly become a primary exploration prospect. Success at East Nora Lake and Lac Laynes continue to fuel interest in the western camp, culminating in a comprehensive regional compilation involving thousands of proprietary surface and drillhole samples, airborne and ground geophysics, detailed prospecting and geological maps. This work will form the backbone of ongoing exploration activities in the district in 2015 as Falco continues to advance its key western camp properties: Rimo, Flavrian and Lac Laynes.

Work at Tromac will continue to follow up on the outcrop discovery of high-grade gold related to surface projections of historical high-grade gold intersections.

Qualified Person

Stéphane Poitras, Exploration Manager (P.Geo.) is the qualified person for this release as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects and has reviewed and verified the technical information contained herein. Mr. Poitras is an employee of Falco and is non-independent.

QA/QC

Falco has implemented a strict quality-control program to comply with best practices in the sampling and analysis of drill core and surface samples. As part of its QA/QC program, Falco inserts certified external mineralized standards (low to high grade) and blanks placed randomly every 25 samples, to test the laboratory analysis methods and precision for each shipment of samples. This is done in addition to the standards, blanks, and pulp duplicates inserted by the certified laboratory. Blanks and standards are inserted within the normal sample number sequence. Assay results and certificates of analysis are interpreted and reported on almost a daily basis. If anomalies are detected, the laboratory is advised and the entire batch of samples is re-assayed.

About Falco

Falco Resources Ltd. is one of the largest mineral claim holders in the Province of Quebec, with extensive land holdings in the Abitibi Greenstone Belt. Falco owns 74,000 hectares of land in the Rouyn-Noranda mining camp, which represents 70% of the entire camp and includes 13 former gold and base metal mine sites. Falco's principal property is the Horne Mine, which was operated by Noranda from 1927 to 1976 and produced 11.6 million ounces of gold and 2.5 billion pounds of copper. A maiden 43-101 mineral resource estimate for the Horne 5 deposit delineated an initial inferred resource of 2.8 Moz AuEq at 3.46 g/t AuEq (25.3 million tonnes grading 2.64 g/t Au, 0.23% Cu and 0.7% Zn, for 2.2 Moz Au -- see March 4, 2014 press release for details).

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.

Attachment Available: http://www.marketwire.com/library/MwGo/2015/1/28/11G031759/Nov_20_2014_PR-1022466527380.pdf
Attachment Available: http://www.marketwire.com/library/MwGo/2015/1/28/11G031759/FIG1-PRESS_RELEASE_2014_EXPLORATION_WORKS_8_5x11_D-511402649642.pdf
Attachment Available: http://www.marketwire.com/library/MwGo/2015/1/28/11G031759/FIG2-PRESS_RELEASE_EAST_NORA_LAKE_BEST_ASSAYS_8_5x-1238271920663.pdf

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