Falcon Gold Corp.
TSX VENTURE : FG

Falcon Gold Corp.

February 23, 2012 08:00 ET

Falcon Gold Options Burton Gold Property to Trelawney Mining & Exploration

SUDBURY, ONTARIO--(Marketwire - Feb. 23, 2012) - (TSX VENTURE:FG). Falcon Gold Corp. is pleased to announce the Company has entered into an Option Agreement (the "Agreement") on its Burton Gold Property with Trelawney Mining and Exploration Inc. (TSX VENTURE:TRR) ("Trelawney"). The Burton Gold Property is located immediately west of Trelawney's property which hosts the past producing Jerome Mine and the Cote Lake Deposit, The Cote Lake Deposit, located approximately 38 km east of the Burton property hosts an inferred resource of 131 Mt grading 1.0 g/t (4.22 M Oz Au) and the Jerome Mine, located approximately 8 km east of the Burton property hosts an inferred resource of 18.7 Mt grading 1.7 g/t (1.03 M Oz Au). Under the terms of the Agreement, Trelawney can earn up to a 75% interest in the Burton Gold Property through the successful execution of the following two stages:

  1. Trelawney may earn a 51% interest in the Burton property by paying $150,000 in cash to Falcon Gold and completing $600,000 in exploration expenditures on or before February 16, 2013 (Phase 1 of the Agreement), and

  2. Trelawney may earn an additional 24% interest by incurring an additional $600,000 in exploration expenditures on the property on or before February 16, 2014 (Phase 2 of the Agreement).

Under the terms of the Agreement, upon the completion of Phase 1, Falcon Gold and Trelawney may form a Joint Venture on the Burton property.

Should Trelawney not complete Phase 2, they will retain their 51% interest in the Burton property and the Joint Venture will remain in place.

Falcon Gold will act as operator for Phase 1 of the Agreement.

"Given the proximity of the Burton property to Trelawney's existing deposits, we are extremely pleased to be coordinating our exploration efforts with Trelawney in the advancement of the Burton Property", said Ed Stringer, Falcon Gold Corp. CEO.

It is anticipated that the first phase of exploration will be diamond drilling directed at following up historical drill intercepts as well as recently completed drilling results completed by Falcon Gold at the Shaft Zone and at the East Zone. Further evaluation will include property wide exploration.

The Agreement is subject to regulatory approval.

About the Burton Property

The Burton Property consists of 6 patented and 16 unpatented mining claims encompassing 22 claim units (356 hectares) and is located in the Swayze Greenstone Belt, Northeastern Ontario, approximately 150 kilometres (km) south of Timmins and 180 km north of Sudbury. The Swayze Greenstone Belt is interpreted as being correlative with the Abitibi Greenstone belt which hosts the world class Kirkland Lake and Timmins gold mining camps. The Swayze Greenstone belt is an active exploration centre including the exploration and evaluation work being completed by Trelawney.

Historical diamond drill intercepts at the Burton Property include 9.34 grams per ton ("g/t") over an intersection length of 7.75 metres ("m") at the Shaft Zone and 12.47 g/t over an intersection length of 3.13 metres at the East Zone. Diamond drilling completed by Falcon Gold during 2011 included 3.74 g/t Au over an intersection length of 9.96 m (including 10.98 g/t Au over 2.17 m) and 3.25 g/t Au over an intersection length of 10.35 m (including 5.65 g/t Au over 2.85 m) at the Shaft Zone (Press Releases of July 27/2011 and September 12/2011.)

About Falcon Gold Corp.

Falcon Gold Corp. is a Canadian mineral exploration company focused on generating, acquiring, and exploring a quality pipeline of mining opportunities in the Americas. The Burton Gold Property is located in the Abitibi Greenstone/Swayze Extension Gold Belt which hosts the world-class mining centres of Kirkland Lake, Timmins, and Val d'Or and is situated approximately 8 km west of Trelawney Mining's Jerome Mine deposit and 38 km west of Trelawney Mining's Cote Lake deposit.

About Trelawney

Trelawney is a Canadian junior mining and exploration company with a focus on Archean gold deposits in Ontario. The Company's main focus is the exploration and development of the Côté Lake Gold Deposit located in the southeastern part of the Swayze Greenstone Belt halfway between Timmins and Sudbury, 20 km southwest of Gogama, Ontario. The deposit currently hosts an NI 43-101 resource of 4.22 million ounces of gold (131 million tonnes @ 1.0 g/t Au). An updated resource is anticipated for Q1 of 2012.

Qualified Person

Jamie Lavigne, P.Geo, Vice President of Exploration, and Director of Falcon Gold has reviewed and verified the contents of this news release.

On Behalf of the Board of Directors

FALCON GOLD CORP.

Edward Stringer President, CEO and Director

This news release may contain forward looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, native issues, etc. Forward looking statements address future events and conditions and therefor, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Neither 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 release.

Contact Information

  • Falcon Gold Corp.
    Timea Carlsen
    Manager, Corporate Communications
    Toronto Cell: 647-991-2473 (BIRD)
    Vancouver Cell: 778-998-2473 (BIRD)
    timea.carlsen@falcongold.ca