Farallon Resources Ltd.
TSX : FAN

Farallon Resources Ltd.

November 07, 2005 08:30 ET

Farallon Announces Further Drill Results & Preliminary Resource Estimate for G-9 Deposit

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 7, 2005) - Farallon Resources Ltd. (TSX:FAN) -

Deposit continues to expand - third drill to be added

Preliminary Economic Assessment targeted for completion in March 2006

Dick Whittington, President & CEO of Farallon Resources Ltd., is pleased to provide a further update from drilling at the new high grade G-9 deposit, recently discovered at the Company's Campo Morado polymetallic (zinc, gold, silver, copper, lead) project in Guerrero State, Mexico. The size of the deposit continues to expand and a more detailed resource analysis has been conducted. In addition, the results of several new drill holes are now available.

The latest results are from 11 exploration holes drilled at G-9. Highlights are tabulated below. Results from all holes drilled at G-9 are included in the attached Assay Table. Hole locations are shown on the attached Drill Hole Location Plan. A Deposit Location Map is also included.

Assays are pending for a further 7 holes at G-9 and will be released when received. Massive sulphides continue to be intersected, and the deposit remains open to the west, northwest and southeast. A third rig will be added to speed up the delineation of this exciting new discovery. Highlights of the new drilling results are:



--------------------------------------------------------------------
--------------------------------------------------------------------
True
Drill Inter- Thick-
Hole Depo- From To val ness Au Ag Cu
Number sit (metres) (metres) (metres) (metres) (g/t) (g/t) (%)
--------------------------------------------------------------------
488 G9 429.0 449.7 20.7 19.0 1.00 88 0.88
--------------------------------------------------------------------
488 G9 Incl.
429.0 441.7 12.7 11.7 1.25 115 1.06
--------------------------------------------------------------------
490 G9 425.6 435.3 9.7 9.2 1.68 214 2.45
--------------------------------------------------------------------
490 G9 Incl.
426.3 430.4 4.1 3.9 2.69 426 4.41
--------------------------------------------------------------------
496 G9 518.4 531.4 13.0 12.5 2.36 119 0.73
--------------------------------------------------------------------
--------------------------------------------------------------------


--------------------------------------------------------------------
--------------------------------------------------------------------
Drill Au EQ Ag EQ Cu EQ Zn EQ
Hole Pb Zn (1) (2) (3) (4)
Number (%) (%) (g/t) (g/t) (%) (%)
--------------------------------------------------------------------
488 1.01 6.08 10.03 684 5.49 10.76
--------------------------------------------------------------------
488 1.44 6.87 11.94 814 6.53 12.80
--------------------------------------------------------------------
490 1.91 11.81 21.19 1,444 11.59 22.72
--------------------------------------------------------------------
490 3.95 19.36 36.86 2,513 20.16 39.53
--------------------------------------------------------------------
496 0.90 3.56 9.17 625 5.02 9.83
--------------------------------------------------------------------
--------------------------------------------------------------------
1. Gold Equivalent (Au EQ g/t): equals (Au g/t)+(Ag g/t x 0.17683/
12.057)+(Cu % x 22.046/12.057)+(Pb % x 5.5116/12.057)+(Zn % x
11.244/12.057)
2. Silver Equivalent (Ag EQ g/t): equals (Au g/t x 12.057/0.17683)+
(Ag g/t)+(Cu % x 22.046/0.17683)+(Pb % x 5.5116/0.17683)+(Zn % x
11.244/0.17683)
3. Copper Equivalent (Cu EQ %): equals (Au g/t x 12.057/22.046)+
(Ag g/t x 0.17683/22.046)+(Cu %)+(Pb % x 5.5116/22.046)+(Zn % x
11.244/22.046)
4. Zinc Equivalent (Zn EQ %): equals (Au g/t x 12.057/11.244)+
(Ag g/t x 0.17683/11.244)+(Cu % x 22.046/11.244)+(Pb % x 5.5116/
11.244)+(Zn %)
Metal prices: Au US$375/oz; Ag US$5.5/oz; Cu US$1.00/lb;
Pb US$0.25/lb; Zn US$0.51/lb


A preliminary estimate of the resource at G-9 has been completed by Farallon's geological staff, based on internal modelling using the 51 drill holes reported to date - including those announced in this news release. The analysis utilized 3-dimensional (3D) Vulcan modelling techniques, and internal factors based on prior experience at Campo Morado, and will to be used for ongoing exploration planning purposes. The currently outlined dimensions of G-9 are approximately 500 metres by 250 metres and it is oriented east to west. The maximum thickness of the sulphide body is 45 metres, but averages 10 to 20 metres. Figures showing a 3D model and sample cross section are attached. Inferred mineral resources, at various Gross Metal Value per tonne (GMV/t) cut-offs in US dollars, are as follows:



-----------------------------------------------------------------
-----------------------------------------------------------------
Cut-Off Avg Au Ag Cu Pb Zn
GMV/t GMV/t Tonnes (g/t) (g/t) (%) (%) (%)
-----------------------------------------------------------------
90 204 3,600,000 3.2 204 1.4 1.1 8.3
-----------------------------------------------------------------
180 258 2,100,000 4.0 262 1.8 1.3 10.4
-----------------------------------------------------------------
200 269 1,800,000 4.2 278 1.8 1.3 10.8
-----------------------------------------------------------------
-----------------------------------------------------------------

-----------------------------------------------------------------
-----------------------------------------------------------------
Au Ag Cu Zn
EQ EQ EQ EQ
Cut-Off (1) (2) (3) (4)
GMV/t (g/t) (g/t) (%) (%)
-----------------------------------------------------------------
90 17.0 1,160 9.3 18.2
-----------------------------------------------------------------
180 21.4 1,460 11.7 23.0
-----------------------------------------------------------------
200 22.2 1,520 12.2 23.8
-----------------------------------------------------------------
-----------------------------------------------------------------


As previously announced, the G-9 deposit consists of "stacked" felsic volcanic intervals separated by sedimentary rocks. Massive sulphides occur in at least two different stratigraphic horizons. Recognition of this feature has been a key result that continues to unlock the potential of this high grade deposit. Significantly, it indicates that there is potential for further discoveries at depth, beneath the currently known deposits in the Campo Morado district. It also enhances the discovery potential for other deposits that have yet to be fully explored, in particular, the La Lucha target.

As a result of the success of the G-9 drilling program and its potential to add to the overall economics of the project, the Company has decided to refocus its geological and engineering attention on this deposit at the expense of the Pre-feasibility Study currently underway. The objective is to complete a Preliminary Economic Assessment of the project that includes the G-9 deposit by the end of March 2006. The Company's immediate efforts will be directed towards increasing and upgrading the resource at G-9, conducting preliminary mine and processing studies, and developing an integrated mine development plan that commences at G-9, and then progresses to the development and exploitation of other Campo Morado deposits in order to maximize the project's economics.

Dick Whittington said:

"G-9 continues to expand. The results of our preliminary resource review for the deposit indicate that it is impossible to ignore the beneficial effects of mining G-9 first, before the other known deposits at Campo Morado. The deposit remains open in several directions, and the discovery of a second mineralized horizon offers extremely interesting possibilities for the district as a whole. In the near term, all of our exploration and engineering efforts will be focused on rapidly advancing our knowledge of this exciting new deposit to be able to complete a Preliminary Assessment by next March, and then to upgrade its status to incorporate it into the Pre-feasibility study. We continue to make exciting progress on all fronts and the potential of the Campo Morado district is still relatively untapped."

The in-house qualified person for the resource estimate is David Gaunt, P.Geo., and for the drilling program is Daniel Kilby, P.Eng. A technical report describing the G-9 resource estimate will be filed in 30 days.

ALS Chemex is the analytical laboratory for the project; sample preparation is done in Guadalajara, Mexico and analysis is done in Vancouver, BC. All samples are assayed for gold by fire assay fusion with a gravimetric or Atomic Absorption (AA) finish. Silver, copper, lead, zinc and 27 to 30 additional elements are determined for all samples by acid digestion, followed by an AA or ICP finish. Duplicates are analyzed by Acme Analytical Laboratories in Vancouver.

Farallon has a strong cash position of C$11.9 million that will enable the Company to complete its current drilling program and conclude a Preliminary Assessment of the project in early 2006. For further details on Farallon Resources Ltd. and its Campo Morado property, please visit the Company's website at www.farallonresources.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.

ON BEHALF OF THE BOARD OF DIRECTORS

J.R.H. (Dick) Whittington, President & CEO

Forward Looking Information

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. The likelihood of future mining at Campo Morado is subject to a large number of risks and will require achievement of a number of technical, economic and legal objectives, including obtaining necessary mining and construction permits, completion of pre-feasibility and final feasibility studies, preparation of all necessary engineering for pits and processing facilities as well as receipt of significant additional financing to fund these objectives as well as funding mine construction. Such funding may not be available to the Company on acceptable terms or on any terms at all. There is no known ore at Campo Morado and there is no assurance that the mineralization at Campo Morado will ever be classified as ore. For more information on the Company and the risk factors inherent in its business, investors should review the Company's Annual Information Form at www.sedar.com.



--------------------------------------------------------------------
--------------------------------------------------------------------
Drill True
Hole Inter- Thick-
Num- Depo- From To val ness Au Ag Cu
ber sit (metres) (metres) (metres) (metres) (g/t) (g/t) (%)
--------------------------------------------------------------------
--------------------------------------------------------------------
415 G9, did not intersect massive sulphides
--------------------------------------------------------------------
420 G9 377.4 392.3 14.9 8.1 1.06 67 1.76
--------------------------------------------------------------------
420 G9 Incl.
377.4 387.4 10.0 5.5 1.41 91 1.96
--------------------------------------------------------------------
432 G9, did not intersect massive sulphides
--------------------------------------------------------------------
436 G9 472.1 476.1 4.0 3.8 1.29 62 0.37
--------------------------------------------------------------------
436 G9 524.7 525.8 1.1 1.0 1.42 184 1.46
--------------------------------------------------------------------
441 G9, did not intersect massive sulphides
--------------------------------------------------------------------
458 G9 369.0 372.0 3.0 3.0 0.56 39 2.56
--------------------------------------------------------------------
459 G9, did not intersect massive sulphides
--------------------------------------------------------------------
460 G9, did not intersect massive sulphides
--------------------------------------------------------------------
461 G9, did not intersect massive sulphides
--------------------------------------------------------------------
462 G9, did not intersect massive sulphides
--------------------------------------------------------------------
463 G9, did not intersect massive sulphides
--------------------------------------------------------------------
464 G9 348.2 372.0 23.8 23.5 3.68 195 0.89
--------------------------------------------------------------------
464 G9 Incl.
348.2 367.2 19.0 18.8 4.44 232 0.91
--------------------------------------------------------------------
464 G9 Incl.
360.2 367.2 7.0 6.9 4.88 308 0.98
--------------------------------------------------------------------
465 G9, did not intersect massive sulphides
--------------------------------------------------------------------
466 G9, did not intersect massive sulphides
--------------------------------------------------------------------
467 G9 317.3 335.1 17.8 16.4 6.56 545 1.38
--------------------------------------------------------------------
467 G9 Incl.
317.3 323.8 6.5 6.0 6.96 370 2.22
--------------------------------------------------------------------
467 G9 Incl.
328.1 333.1 5.0 4.6 8.47 970 1.30
--------------------------------------------------------------------
468 G9 491.0 502.2 11.2 10.0 1.48 73 0.42
--------------------------------------------------------------------
468 G9 Incl.
491.0 497.0 6.0 5.4 1.76 80 0.35
--------------------------------------------------------------------
469 G9, did not intersect massive sulphides
--------------------------------------------------------------------
470 G9, did not intersect massive sulphides
--------------------------------------------------------------------
471 G9, did not intersect massive sulphides
--------------------------------------------------------------------
472 G9, did not intersect massive sulphides
--------------------------------------------------------------------
473 G9, did not intersect massive sulphides
--------------------------------------------------------------------
474 G9 433.3 451.1 17.8 17.7 3.19 242 1.51
--------------------------------------------------------------------
474 G9 Incl.
434.3 440.3 6.0 6.0 2.81 231 2.55
--------------------------------------------------------------------
474 G9 460.1 464.9 4.8 4.8 13.60 834 0.41
--------------------------------------------------------------------
476 G9, did not intersect massive sulphides
--------------------------------------------------------------------
479 G9 423.2 445.2 22.0 21.6 1.60 98 0.54
--------------------------------------------------------------------
479 G9 Incl.
423.2 435.0 11.8 11.6 2.25 139 0.60
--------------------------------------------------------------------
481 G9 459.4 494.6 35.2 34.9 2.16 253 2.96
--------------------------------------------------------------------
481 G9 503.0 522.5 19.5 19.3 2.72 209 1.45
--------------------------------------------------------------------
481 G9 Incl.
508.4 514.0 5.6 5.5 4.46 370 1.90
--------------------------------------------------------------------
481 G9 Incl.
508.4 512.0 3.6 3.6 4.72 451 1.82
--------------------------------------------------------------------
483 G9 482.4 495.5 13.1 13.0 5.19 191 1.36
--------------------------------------------------------------------
484 G9 353.1 356.3 3.3 3.0 0.63 129 2.28
--------------------------------------------------------------------
484 G9 399.9 406.9 7.0 6.5 3.79 255 0.54
--------------------------------------------------------------------
485 G9 343.9 352.1 8.3 7.9 4.76 370 2.14
--------------------------------------------------------------------
485 G9 Incl.
343.9 348.9 5.0 4.8 5.17 437 3.16
--------------------------------------------------------------------
485 G9 407.0 409.0 2.0 1.9 0.41 26 1.46
--------------------------------------------------------------------
486 G9 504.1 509.5 5.4 5.3 2.40 115 1.67
--------------------------------------------------------------------
486 G9 526.5 529.7 3.2 3.1 2.87 171 1.32
--------------------------------------------------------------------
486 G9 535.8 545.0 9.2 9.0 4.15 162 1.61
--------------------------------------------------------------------
486 G9 549.3 576.5 27.2 26.5 16.02 609 0.90
--------------------------------------------------------------------
486 G9 Incl.
551.3 559.3 8.0 7.8 45.89 1555 0.29
--------------------------------------------------------------------
486 G9 Incl.
555.3 558.3 3.0 2.9 66.80 2233 0.25
--------------------------------------------------------------------
486 G9 592.4 593.8 1.4 1.4 1.14 96 1.15
--------------------------------------------------------------------
487 G9, did not intersect massive sulphides, no significant
intersection
--------------------------------------------------------------------
488 G9 429.0 449.7 20.7 19.0 1.00 88 0.88
--------------------------------------------------------------------
488 G9 Incl.
429.0 445.7 16.7 15.3 1.09 97 0.96
--------------------------------------------------------------------
488 G9 Incl.
429.0 441.7 12.7 11.7 1.25 115 1.06
--------------------------------------------------------------------
489 G9, did not intersect massive sulphides, no significant
intersection
--------------------------------------------------------------------
490 G9 425.6 435.3 9.7 9.2 1.68 214 2.45
--------------------------------------------------------------------
490 G9 Incl.
426.3 430.4 4.1 3.9 2.69 426 4.41
--------------------------------------------------------------------
491 G9, did not intersect massive sulphides, no significant
intersection
--------------------------------------------------------------------
492 G9, hole abandoned due to inclination problems
--------------------------------------------------------------------
493 G9, did not intersect massive sulphides, no significant
intersection
--------------------------------------------------------------------
494 G9, did not intersect massive sulphides, no significant
intersection
--------------------------------------------------------------------
495 G9 269.3 271.3 2.1 1.8 0.42 22 0.56
--------------------------------------------------------------------
496 G9 518.4 531.4 13.0 12.5 2.36 119 0.73
--------------------------------------------------------------------
496 G9 557.4 561.2 3.8 3.2 2.74 109 0.68
--------------------------------------------------------------------
497 G9, did not intersect massive sulphides, no significant
intersection
--------------------------------------------------------------------


--------------------------------------------------------------------
Drill Au EQ Ag EQ Cu EQ Zn EQ
Hole Pb Zn (1) (2) (3) (4)
Number (%) (%) (g/t) (g/t) (%) (%)
--------------------------------------------------------------------
415
--------------------------------------------------------------------
420 0.69 14.16 18.78 1,281 10.27 20.14
--------------------------------------------------------------------
420 0.97 17.91 23.47 1,601 12.84 25.17
--------------------------------------------------------------------
432
--------------------------------------------------------------------
436 0.74 4.91 7.79 531 4.26 8.36
--------------------------------------------------------------------
436 0.58 1.17 8.14 555 4.45 8.73
--------------------------------------------------------------------
441
--------------------------------------------------------------------
458 0.02 3.43 9.02 615 4.93 9.67
--------------------------------------------------------------------
459
--------------------------------------------------------------------
460
--------------------------------------------------------------------
461
--------------------------------------------------------------------
462
--------------------------------------------------------------------
463
--------------------------------------------------------------------
464 0.72 12.16 19.84 1,353 10.85 21.27
--------------------------------------------------------------------
464 0.86 13.89 22.85 1,558 12.50 24.51
--------------------------------------------------------------------
464 1.03 22.19 32.35 2,206 17.69 34.69
--------------------------------------------------------------------
465
--------------------------------------------------------------------
466
--------------------------------------------------------------------
467 3.85 6.69 25.08 1,710 13.71 26.89
--------------------------------------------------------------------
467 1.47 11.10 27.47 1,873 15.02 29.46
--------------------------------------------------------------------
467 10.44 5.44 34.92 2,381 19.10 37.44
--------------------------------------------------------------------
468 0.52 5.26 8.46 577 4.63 9.07
--------------------------------------------------------------------
468 0.56 6.46 9.85 672 5.39 10.57
--------------------------------------------------------------------
469
--------------------------------------------------------------------
470
--------------------------------------------------------------------
471
--------------------------------------------------------------------
472
--------------------------------------------------------------------
473
--------------------------------------------------------------------
474 1.28 2.22 12.16 829 6.65 13.03
--------------------------------------------------------------------
474 2.03 5.30 16.73 1,141 9.15 17.94
--------------------------------------------------------------------
474 3.66 4.30 32.26 2,200 17.65 34.60
--------------------------------------------------------------------
476
--------------------------------------------------------------------
479 0.78 6.83 10.75 733 5.88 11.53
--------------------------------------------------------------------
479 0.94 8.34 13.59 927 7.43 14.58
--------------------------------------------------------------------
481 1.82 8.38 19.93 1,359 10.90 21.37
--------------------------------------------------------------------
481 1.05 14.74 22.66 1,545 12.39 24.30
--------------------------------------------------------------------
481 0.92 25.90 37.93 2,587 20.75 40.68
--------------------------------------------------------------------
481 1.11 32.10 45.11 3,075 24.67 48.37
--------------------------------------------------------------------
483 0.55 10.60 20.61 1,406 11.27 22.11
--------------------------------------------------------------------
484 0.91 13.24 19.45 1,326 10.64 20.86
--------------------------------------------------------------------
484 2.37 2.90 12.31 839 6.73 13.19
--------------------------------------------------------------------
485 1.42 5.51 19.89 1,356 10.88 21.32
--------------------------------------------------------------------
485 1.68 7.22 24.86 1,695 13.60 26.66
--------------------------------------------------------------------
485 0.31 4.31 7.62 520 4.17 8.17
--------------------------------------------------------------------
486 0.79 9.81 16.65 1,135 9.11 17.85
--------------------------------------------------------------------
486 1.43 6.10 14.13 964 7.73 15.16
--------------------------------------------------------------------
486 1.07 10.20 19.47 1,328 10.65 20.88
--------------------------------------------------------------------
486 1.01 5.22 31.93 2,177 17.46 34.24
--------------------------------------------------------------------
486 1.34 2.46 72.13 4,918 39.45 77.35
--------------------------------------------------------------------
486 1.50 2.03 102.59 6,995 56.10 110.00
--------------------------------------------------------------------
486 0.44 4.92 9.44 644 5.16 10.12
--------------------------------------------------------------------
487
--------------------------------------------------------------------
488 1.01 6.08 10.03 684 5.49 10.76
--------------------------------------------------------------------
488 1.18 6.44 10.81 737 5.91 11.59
--------------------------------------------------------------------
488 1.44 6.87 11.94 814 6.53 12.80
--------------------------------------------------------------------
489
--------------------------------------------------------------------
490 1.91 11.81 21.19 1,444 11.59 22.72
--------------------------------------------------------------------
490 3.95 19.36 36.86 2,513 20.16 39.53
--------------------------------------------------------------------
491
--------------------------------------------------------------------
492
--------------------------------------------------------------------
493
--------------------------------------------------------------------
494
--------------------------------------------------------------------
495 0.05 6.77 8.10 552 4.43 8.69
--------------------------------------------------------------------
496 0.90 3.56 9.17 625 5.02 9.83
--------------------------------------------------------------------
496 0.87 3.92 9.64 657 5.27 10.33
--------------------------------------------------------------------
497
--------------------------------------------------------------------
1. Gold Equivalent (Au EQ g/t): equals (Au g/t)+(Ag g/t x 0.17683/
12.057)+(Cu % x 22.046/12.057)+(Pb % x 5.5116/12.057)+(Zn % x
11.244/12.057)
2. Silver Equivalent (Ag EQ g/t): equals (Au g/t x 12.057/0.17683)+
(Ag g/t)+(Cu % x 22.046/0.17683)+(Pb % x 5.5116/0.17683)+(Zn % x
11.244/0.17683)
3. Copper Equivalent (Cu EQ %): equals (Au g/t x 12.057/22.046)+(Ag
g/t x 0.17683/22.046)+(Cu %)+(Pb % x 5.5116/22.046)+(Zn % x
11.244/22.046)
4. Zinc Equivalent (Zn EQ %): equals (Au g/t x 12.057/11.244)+(Ag
g/t x 0.17683/11.244)+(Cu % x 22.046/11.244)+(Pb % x 5.5116/
11.244)+(Zn %)
Metal prices: Au US$375/oz; Ag US$5.5/oz; Cu US$1.00/lb; Pb
US$0.25/lb; Zn US$0.51/lb


To view the tables accompanying this release please click on the following link:
www.ccnmatthews.com/docs/fan1107.pdf

No regulatory authority has approved or disapproved the information contained in this news release.

Contact Information

  • Farallon Resources Ltd.
    Shawn Wallace
    Investor Services
    (604) 684-6365 or Toll Free: 1-800-667-2114
    (604) 684-8092 (FAX)
    www.farallonresources.com