SOURCE: Falco Resources Ltd

Falco Resources Ltd

November 06, 2015 07:10 ET

Falco Provides Positive Results From Underground Water Sampling and Announces New Independent Director Nominees

MONTREAL, QC--(Marketwired - November 06, 2015) - Falco Resources (TSX VENTURE: FPC) ("Falco") is pleased to report positive results from its preliminary infrastructure evaluation assessment and from its groundwater sampling campaign on its 100% owned Horne Complex property, located in Rouyn-Noranda, Québec.

The Company is also pleased to announce the nomination of two new independent mining industry veterans who will stand for election as nominees to Falco's Board of Directors at the upcoming annual and special meeting of shareholders, scheduled for November 24, 2015.

HORNE COMPLEX INFRASTRUCTURE EVALUATION

The Company has conducted a comprehensive evaluation of the existing infrastructure on its Horne Complex property.

A preliminary assessment of the existing infrastructure suggests that the Company will be able to utilize the existing Quémont #4 shaft as its production shaft, and 3 of the Horne shafts (#4, #6 & #8) as ventilation raises. The Quémont #4 shaft will need to be rehabilitated to current production standards, however it will not have to be widened to accommodate larger skips.

The historical workings located in the upper portion of the ore body offer several openings where waste material and tailings could be sent and disposed of. These openings will enable the Company to minimize the impact on surface and manage tailings efficiently.

The evaluation estimates the capital cost savings to be upwards of $100mm in direct and indirect costs. Additionally, the existing infrastructures will enable the Company to further accelerate the development timeline of the Horne 5 deposit.

"The work program results at the Horne 5 Project continue to confirm the tremendous potential," said Luc Lessard, President and CEO. "The availability of the existing infrastructure represents a major breakthrough for the Company as this will be pivotal in unlocking the potential of the project and positioning the Company for the future."

UNDERGROUND WATER SAMPLING RESULTS

The Company is pleased to report initial results on the quality of groundwater in the flooded Quémont #4 shaft. The water sampling operation was initiated by measuring the physico-chemical parameters (pH, conductivity, dissolved oxygen and redox) in the water columns while descending a probe to a depth of 1,000 meters in the flooded shaft. This was completed nine times to obtain reliable data. No obstacles were encountered during the probe ascension and descent.

Water quality in the shaft is homogeneous to a depth of 600 meters. It contains mostly sulfates (approximately 1% by weight), calcium, magnesium, sodium and iron, the latter gives a yellowish to rusty brown color to the water. Iron and zinc exceed their respective Quebec effluent water quality criteria. The conductivity increases with depth to reach around 11 000 mS/cm at the bottom of the shaft, which is consistent with the presence of soluble metals in the water. In the intervals sampled, the shaft water pH is slightly below the effluent limit (pH 5.6 vs pH 6.0 which is the lower limit of Directive 019).

                 
ID station  Depth (m)  pH  Conductivity
(µS/cm)
 Temperature
(°C)
 Dissolved
Oxygen
(mg/L)
 ORP  Color  Turbidity*
Quémont-
Shaft-110m-
7oct2015
 110  5.6  10,322  11.3  9.5  44.3  yellowish  4
Quémont-
Shaft-300m-
7oct2015
 300  5.7  10,400  11.3  8.8  16.8  yellowish  4
Quémont-
Shaft-600m-
7oct2015
 600  5.6  9,937  9.6  9.7  39.9  yellowish /
brownish
 4
*:1 to 5 (clear: 1, opaque: 5)

A water treatment procedure is planned for a future underground dewatering. Neutralization will be needed to reach the lower pH limit, however the Company and its consultants believe neutralization will be minimal and that standard equipment and technology could be utilized. It is expected that water treatment for attenuation of iron and zinc will be straightforward.

Below the 600 meter interval the pH increases to reach 6.5 at the bottom of the shaft. The variations observed in the readings at shallow depth could be explained by the influence of surface water infiltration.

NEW INDEPENDENT DIRECTOR NOMINEES

The two new independent mining industry veterans to stand for election as part of a seven-person Board of Directors at Falco's annual and special meeting of shareholders, scheduled for November 24, 2015 are Mr. Mario Caron, and Mme. Helene Cartier.

Mr. Sean Roosen, Chairman of the Board of Directors noted: "Our two new nominees, Mme. Cartier and Mr. Caron, would bring valuable and complimentary experience and would be a welcomed additions to work alongside the five incumbent directors to build value for all shareholders."

The new nominees are proven leaders with strong operational and C-suite experience:

  • Mario Caron: an executive with over 35 years of experience in the mining industry including board and management expertise in operations, development, exploration, and capital markets as well as government relations with companies having projects in the Americas, Africa and South-East Asia. From November 2011 to July 2013, he served as CEO and Director of Aldridge Minerals Inc. Mr. Caron previously held similar positions, CEO and Director, with Axmin Inc., and Tiberon Minerals Ltd. Mr. Caron is also a former Vice President Mining and Infrastructure with PricewaterhouseCoopers Securities Inc. He is currently a Director of Adventure Gold Inc., Algold Resources Ltd. and Alloycorp Mining Inc. Mr. Caron is a member of the Quebec Order of Engineers and the Association of Professional Engineers of Ontario.
  • Hélène Cartier: Ms. Hélène Cartier was formerly Vice-President, Environment and Sustainable Development at Osisko Mining Corporation from 2011 to 2013. From 2013 to 2015, Ms. Cartier was Deputy Manager of La rue des Femmes de Montréal. Ms. Cartier holds a degree in Industrial Engineering and a Bachelors Degree in Law. She was intimately involved in the community relations aspects during the permitting, construction and development phases of the Canadian Malartic Mine.

Qualified Person

The scientific and technical information regarding the mining and engineering evaluation set out in this news release has been approved by Francois Vezina, Director -- Mining Development of Osisko Mining Group. Mr. Vezina is a P.Eng . with the Ordre ingenieurs du Quebec, and is a "qualified person" as defined by NI 43-101.

The scientific and technical information regarding the water evaluation and testing set out in the news release has been approved by Valerie Bertrand of Golder Associates Ltd. Mrs. Valerie Bertrand is a M.A.Sc., P.Geo (ON,QC,NT-NU), and is a "qualified person" as defined by NI 43-101.

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, realization of expected capital costs savings, confirmation of the potential of the Horne 5 Project, achievement of water neutralization as expected and the election to the Board of Directors of the two proposed nominee. 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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