SOURCE: Falco Resources Ltd.

Falco Resources Ltd.

September 08, 2014 22:14 ET

Falco Secures Land for Horne 5 Operations

ROUYN-NORANDA, QC--(Marketwired - September 08, 2014) - Falco Resources Ltd. ("Falco") (TSX VENTURE: FPC) announced today that it has signed an option agreement with the City of Rouyn-Noranda to acquire surface rights to land above the Horne 5 deposit and immediately adjacent to the Horne smelter.

The agreement provides Falco with a 5-year option to purchase over 5 hectares of land in the Horne Complex that could support a headframe, mill and other surface facilities required to develop the Horne 5 underground deposit. The property is located in an industrial area north of Rouyn-Noranda bounded by infrastructure and a rail line.

The total purchase price is $2.9M, of which a $1M non-refundable deposit will be payable upon transfer of the property, which is anticipated in the coming weeks. The remaining $1.9M is payable by August 1, 2019. Falco recently accelerated approximately $1M in warrants to offset the deposit amount.

"This is a significant milestone in the advancement of our long term strategy within the Horne Complex," said Trent Mell, President & CEO. "There are no plans to make a development decision in the near term but this acquisition preserves that option by ensuring there are surface rights from which to operate a mine. We are very pleased by the support the community has shown Falco and I look forward to an ongoing dialogue with the citizens of Rouyn-Noranda in the months ahead."

Evaluation of the potential of Horne 5 and several surrounding mineralized zones is ongoing. Two priorities over the next nine months are to increase the size of the Horne 5 resource and upgrade the confidence level from inferred to an indicated mineral resource.

About Falco

Falco Resources Ltd. (TSX VENTURE: FPC) is one of the largest claim holders in the Province of Quebec, with extensive land holdings in the Abitibi Greenstone Belt. Falco owns 72,800 hectares of land in the Rouyn-Noranda mining camp, which represents 70% of the entire camp and includes 14 former gold and base metal mine sites. Falco's principal property is the Horne Mine Complex, 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.

Contact Information

  • For further information contact:

    Mr. Dean Linden
    Senior Vice President, Business Development
    +1.425.449.9442
    dlinden@falcores.com  

    Ms. Deanna Kress
    Corporate Communications
    +1.604.336.6346
    1.855.238.4671
    dkress@falcores.com