SOURCE: Falco Resources Ltd

Falco Resources Ltd

September 16, 2015 08:00 ET

Falco Horne 5 Drilling Continues to Confirm Grade and Geometry

MONTREAL, QC--(Marketwired - September 16, 2015) - Falco Resources (TSX VENTURE: FPC) ("Falco") is pleased to announce additional positive results of its current confirmation drilling program on the Company's 100% owned Horne 5 project. The new results include 2 additional pilot holes and two wedges. The Horne 5 confirmation drill program consists of 18 holes totaling 16,000 meters. To date, 10 holes have been completed, logged, analyzed and assayed. Six additional holes are in progress or completed with results pending, two remaining wedges are to be initiated. The drilling program will be completed by the end of September. Comparisons of the new results with the nearest historical data continue to confirm the overall grade and geometry of the Horne 5 deposit.

The Company also wishes to announce the initiation of a 5,000 meter drilling program on its Rivière Mouilleuse ("RIMO") target and the imminent launch of a 6,300 meter drilling program on the upper part of the Horne 5 deposit ("Horne 5 PLUS").

The Company is encouraged with the current developments. With the addition of the RIMO and Horne 5 PLUS drilling programs, the Company will complete in excess of 27,000 meters of new drilling in 2015.

HIGHLIGHTS FROM CONFIRMATION HORNE 5 DRILLING PROGRAM

Analytical results have been received for the first 10 holes drilled at Horne 5. Results received to date can be summarized as follows:

Comparisons of these results with the nearest historical data are shown in the following tables. The comparisons are made on all assays for the entire length of the mineralized zone without applying a cut-off grade. The lengths presented are core length. Given the historical drill holes are not parallel to the 2015 drill holes, cylinders of 15m around the 2015 drill holes were used to select the historical samples in the immediate vicinity of the drill hole for the basis of comparison. Note that the historical data did not include any silver values.

The additional results from the 2 additional pilot holes (H5-15-04, H5-15-06) and their respective wedges confirm the grades of the historical drill holes.

 
Comparison of 2015 Drill Hole Data vs. Historical Raw Assay Data
 
    New Hole Drill Data  Historical Raw Assay Data    

Hole_ID
 
Length
(m)
 
Au_Eq_With Silver
(g/t)
 AuEq Without
Silver
(g/t)
 AuEq Without
Silver
(g/t)
 
2015 Drill Results vs.
Historical Results
 
Data
Released
H5-15-01  31.2  3.00  2.85  2.82  0.9%  Jul-15
H5-15-01-Atw  36.7  1.45  1.38  2.85  (51.5%)  Jul-15
H5-15-02  100.9  2.93  2.48  1.92  29.4%  Jul-15
H5-15-02-Atw  87.0  2.82  2.39  2.16  10.6%  Jul-15
H5-15-03B  116.7  1.34  1.11  1.23  (9.7%)  Jul-15
H5-15-03Dtw  134.4  1.46  1.23  1.28  (3.7%)  Jul-15
H5-15-04  25.5  1.45  1.30  1.55  (16.3%)  Sep-15
H5-15-04-Atw  30.3  2.26  2.09  1.61  30.1%  Sep-15
H5-15-06  54.5  2.43  2.19  2.50  (12.6%)  Sep-15
H5-15-06-Atw  57.5  3.11  2.77  2.51  10.2%  Sep-15
Total  674.7  2.16  1.88  1.87  0.7%   
 
 
Breakdown of Confirmation Drilling Results at $0 NSR
 
 
($0 NSR)  2015 Diamond Drill Hole Results  Weighted Average of 2014 Raw   



Hole_ID
 

From
(m)
 

To
(m)
 

Length
(m)
 

Au
(g/t)
 

Ag
(g/t)
 

Cu
(%)
 

Zn
(%)
 Au_Eq_
With
Silver
(g/t)
 Au_Eq_
Without
Silver
(g/t)
 

Au
(g/t)
 

Cu
(%)
 

Zn
(%)
 Au_Eq_
Without
Silver
(g/t)
 
2015 vs
2014
%
H5-15-01  1,110  1,141  31.2  2.03  10.16  0.46  0.04  3.00  2.85  2.26  0.30  0.10  2.82  0.9%
H5-15-01-Atw  1,105  1,142  36.7  0.88  4.51  0.27  0.06  1.45  1.38  2.18  0.35  0.12  2.85  (51.5%)
H5-15-02  1,001  1,102  100.9  1.32  29.46  0.11  1.94  2.93  2.48  1.14  0.11  1.19  1.92  29.4%
H5-15-02-Atw  1,002  1,089  87.0  1.43  28.61  0.13  1.47  2.82  2.39  1.25  0.12  1.41  2.16  10.6%
H5-15-03B  1,248  1,365  116.7  0.50  15.51  0.06  1.00  1.34  1.11  0.79  0.06  0.67  1.23  (9.7%)
H5-15-03Dtw  1,255  1,390  134.4  0.55  15.44  0.08  1.10  1.46  1.23  0.82  0.06  0.70  1.28  (3.7%)
H5-15-04  1,302  1,327  25.5  0.73  10.27  0.13  0.71  1.45  1.30  0.81  0.11  1.11  1.55  (16.3%)
H5-15-04-Atw  1,290  1,320  30.3  0.95  11.05  0.14  1.79  2.26  2.09  0.83  0.12  1.13  1.61  30.1%
H5-15-06  1,189  1,243  54.5  1.36  16.16  0.26  0.73  2.43  2.19  1.84  0.29  0.31  2.50  (12.6%)
H5-15-06-Atw  1,189  1,247  57.5  1.72  22.50  0.32  0.99  3.11  2.77  1.89  0.28  0.28  2.51  10.2%
Total        674.75  1.05  18.68  0.15  1.13  2.16  1.88  1.23  0.14  0.77  1.87  0.7%
Grade % Difference                             (14.9%)  7.0%  46.8%  0.7%   
                             
                             

The new drilling is verifying the geometry of mineralized zones previously defined by the historic work by Noranda and compares favorably in terms of grade. Drill holes H5-15-02 and H5-15-03 tested a silver and zinc-rich portion of the deposit located in the upper part of the deposit. Drill hole H5-15-04 tested the extension of the resource envelop. Drill hole H5-15-06 initiated the testing of a gold and copper-rich zone. Ongoing drilling will test gold and copper-rich zones within the main envelop. Based on the recent results and current drilling program, the company expects the remaining holes to continue to confirm the historical data and existing resources.

Tested Areas and Future Drilling Targets within the Main Ore Envelope

Historically 4,386 holes were drilled at Horne 5 representing a total of 305 kilometres of drilling. This drill data has been digitized and served as the basis to publish the initial NI 43-101 Inferred resource and for devising the current confirmation drilling program.

Preliminary engineering studies have been initiated. Metallurgical testing is underway to optimize metal recoveries and to determine geotechnical and hydrology information required for project design. Mechanized mining methods, hoisting, rock mechanics studies have also been commenced. All studies are being completed in tandem with the drill program, in preparation for an upcoming preliminary economic assessment.

Gold equivalent calculations and NSR estimates are based on the following assumptions: exchange rate of $Cdn1.05/$US, metal prices of (all $US): gold $1,300/oz, copper $3.30/lb, zinc $0.95/lb, payable metal of 87% for gold, 65% for copper and 37% for zinc (based on conservative estimates of milling and smelting terms for comparable operations within the southern Abitibi district). Metallurgical testing is underway to facilitate optimization of these estimates utilizing available Horne 5 drill core.

INITIATED DRILLING PROGRAM AT RIMO

The Company has initiated a drill program on RIMO a copper-zinc-gold property, located 25 kilometers northwest of the city of Rouyn-Noranda. Drilling is underway, we have completed 6 holes for a total of 2,750 meters. Results are pending.

The initial phase of exploration will consist of a 5,000 meter 10 hole drilling campaign on the northern extent of the felsic volcanic package. Downhole induced polarization (IP) surveying will be conducted simultaneously. In addition, a 46 km ground IP survey is presently ongoing on the property.

INITIATION OF DRILLING PROGRAM AT HORNE 5 PLUS

In September, the Company will initiate a drill program on the Horne 5 PLUS target. The program will be testing several zones and extensions from historically mined areas located between surface and a depth of 650 meters.

The initial phase of exploration will consist of a 6,300 meter 6 hole drilling campaign on Zones M, C and K, as shown in the image below. The program will be completed by the end of 2015.

Qualified Person

Carl Pelletier (P.Geo. Géo., B.Sc.) is the qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects for the portion on the Comparison of New Drill Hole Data vs. Historical Raw Assay Data in this release as it relates to the technical information related to the 2014 Horne 5 Project Resource Estimate and he has reviewed and verified the technical information contained herein. Mr. Pelletier is a consulting geologist with InnovExplo Inc and fulfills the requirements to be a "qualified person" for the purposes of NI 43-101.

Claude Bernier, Exploration Manager, (P.Geo. P.Eng.) 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. Bernier 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. In the mineralized zones, each shipment is comprised of 27 samples. Every shipment is composed of 23 samples, a standard, a blank, a pulp duplicate and a reject duplicate placed randomly every 15th sample to test the laboratory analysis methods and precision for each shipment of samples. Blanks and standards are inserted within the normal sample number sequence. Assay results and certificates of analysis are interpreted and reported on a regular basis. If anomalies are detected, the laboratory is advised and the entire batch of samples is re-assayed. In non-mineralized zones, every shipment is composed of 27 samples, which includes a standard and a blank. In non-mineralized zones, if anomalies are detected, the laboratory is advised, but the batch of samples is not necessarily re-assayed.

About Falco

Falco Resources Ltd. is one of the largest mineral claim holders in the Province of Québec, 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 3.41 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" and includes, without limitation, achievement of objectives set for the confirmatory drilling program, results of the preliminary engineering studies, metallurgical test work and mechanized mining methods studies, timely commencement of the exploration work on the Rimo property. 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.

Cautionary Note Concerning Mineral Resources

This press release uses the term "inferred" resources. We advise investors that while this term is recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize it. "Inferred" resources have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.

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