Falcon Gold Corp.

Falcon Gold Corp.

July 27, 2011 08:00 ET

Falcon Gold Receives Preliminary Assay Results from Phase I Drill Program at Burton Gold Property, Ontario

SUDBURY, ONTARIO--(Marketwire - July 27, 2011) - Falcon Gold Corp. (TSX VENTURE:FG) is pleased to announce assay results from the first 13 holes from the recently completed 3,000 metre, 21 hole drilling campaign at its Burton Property. The Burton Property consists of 6 patented mining claims 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.

Previous diamond drilling on the Burton Property has intersected gold mineralization at the Shaft Zone, which has been the primary focus of historical exploration, and at the East Zone. The East Zone is interpreted to be located within the same structural zone as the Shaft Zone approximately 450 metres to the east-southeast of the Shaft Zone.

During the fall and winter of 2010/2011 Falcon Gold completed a compilation of historical surface exploration and diamond drilling on the Burton property and commissioned an Induced Polarization Geophysical ("IP") survey over a targeted part of the property. The recently completed diamond drilling program was initiated in May and was designed to test: 1) Targets in and peripheral to the Shaft and East Zones, 2) Chargeability anomalies derived from the IP survey, and 3) Geological targets resulting from the compilation of historical geological and exploration data.

The results of the first 13 holes completed are summarized in the table below.

Hole ID From (m) To (m) Length (m) Au (g/t) Target
FG-11-001 14.78 24.74 9.96 3.74 Shaft Zone
incl. 15.77 20.5 4.73 6.43
incl. 16.73 18.9 2.17 10.98
FG-11-002 no significant assays Shaft Zone
FG-11-003 58.7 64 5.3 0.57 East Zone
incl. 60.7 62.05 1.35 1.15
FG-11-004 94.5 97.72 3.22 0.82 East Zone
incl. 96.46 96.99 0.53 1.95
FG-11-005 120.86 122.36 1.5 4.01 Geology
FG-11-006 275.2 276.1 0.9 0.97 Geology
FG-11-007 no significant assays Geology
FG-11-008 113.5 115.4 1.9 3.02 Geology
FG-11-009 not drilled
FG-11-010 not drilled
FG-11-011 not drilled
FG-11-012 no significant assays IP
FG-11-013 no significant assays IP
FG-11-014 no significant assays IP
FG-11-015 no significant assays IP
FG-11-016 no significant assays IP
Notes: Length equals intersection length and true widths of mineralization are not known g/t equals grams per tonne
Holes not drilled were planned but not drilled due to current access. These holes can be drilled during the winter months

The Burton Property is located in the Swayze Greenstone Belt of Northeastern Ontario which is the target of a number of active exploration programs. The Burton property is located approximately 38 km northwest of the Cote Lake Deposit of Trelawney Mining and Exploration Inc. which has an inferred resource of 4.22 M oz Au (131 M tonnes @ 1.00 g/t)¹ and is approximately 8 km northwest of the past producing Jerome Gold Mine which produced 56,878 ounces gold from 1941 to 1943 (303,966 tonnes @ 6.72 g/t)² and has an inferred resource of 1.03 M oz Au (18.7 million tonnes averaging 1.7 g/t) 3.

"We are pleased with these initial results from the Burton Property," said Ed Stringer, Falcon Gold President and CEO. "These results and the pending assays from the balance of the drill program will be integrated into the historical compilation and a strategy for continued evaluation of the property will be formulated. The IP chargeability anomalies that we drill tested, consisted of disseminated sulphides but unfortunately are not gold bearing."

Sampling and QA/QC

Diamond drill core is logged by qualified geological staff on site at the Burton Property. Upon completion of geological and geotechnical logging, the core for sampling and assaying is transported by Company personnel to the Falcon Gold offices in Sudbury Ontario. The core is cut using a diamond saw. One half of the sample is bagged with a sample identification tag. The remaining half sample is returned to the core box with the corresponding sample tag and is archived, in a secure facility, in Sudbury. Samples are delivered by Company personnel to Agat Laboratories in Sudbury.

Upon receipt at Agat Laboratories, the samples are dried, weighed and are crushed to 90% passing 2 mm. A 250 gram riffle split of the crushed sample is pulverized to 85% passing 75 microns. Au concentration is determined on all samples from a 30 gram split of the pulverized sample by Fire Assay with Atomic Absorption finish. All samples with an Au concentration greater than 5 grams per tonne are re-assayed using Fire Assay with a Gravimetric finish.

Falcon Gold uses quality assurance and quality control ("QA/QC") procedures that include the analyses and evaluation of Certified Reference Materials and blank samples as well as the routine analysis of duplicate samples.

Qualified Person

Jamie Lavigne, P.Geo, Vice President of Exploration, and Director of Falcon Gold supervised the diamond drilling exploration program at the Burton Property, is responsible for the verification and quality assurance of the Burton property exploration data, and has reviewed and verified the contents of this news release.

Sources of information referenced in this news release include: 1) Trelawney Mining and Exploration Inc. press release dated March 7, 2011, 2) Ministry of Northern Development and Mines, Ontario, and 3) Augen Gold Corp. press release dated July 18, 2011

About Falcon Gold Corp.

Falcon Gold Corp. is a Canadian mineral exploration company focussed on gold projects in Canada. Its flagship project – the advanced-stage 100% owned Burton 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 Augen Gold's Jerome Mine deposit and 38 km west of Trelawney Mining's Cote Lake deposit.

On Behalf of the Board of Directors


Edward Stringer, President, CEO and Director

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