Farallon Resources Ltd.
TSX : FAN
OTC Bulletin Board : FRLLF

Farallon Resources Ltd.

January 31, 2008 08:41 ET

Farallon Announces New G-9 Resource Estimates

Mineral Resources Increased, 87% of Southeast Zone in Measured and Indicated Categories

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 31, 2008) - Dick Whittington, President and CEO of Farallon Resources Ltd. (TSX:FAN)(OTCBB:FRLLF) ("Farallon" or the "Company"), is pleased to provide the results of a recent resource estimate for the G-9 deposit at the Campo Morado polymetallic (zinc, gold, silver, copper, lead) project in Guerrero State, Mexico.

The currently outlined dimensions of the G-9 deposit are approximately 1,000 metres by 650 metres. The maximum thickness of the deposit is 45 metres, and averages 10 to 20 metres. The deposit currently consists of four massive sulphide bodies (Southeast, Southwest, North and Abajo). Stringer mineralization in the footwall of these bodies has been modeled as a series of replacement zones. The current estimate is based on drilling to October 2007, including 134 drill holes which define and delineate the massive sulphide and replacement zones. The analysis utilized 3-dimensional modeling techniques, and estimation parameters based on prior experience at Campo Morado. The resource estimates were done using geostatistical methods.

The table below includes new estimates for the Southeast zone and the replacement zone in the footwall of the Southeast zone, and the first estimate for the Abajo zone that was discovered by drilling in 2007.



SOUTHEAST, ABAJO, SOUTHEAST AREA REPLACEMENT ZONES
MINERAL RESOURCES JANUARY 2008
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Grade
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Cutoff Zn Au Ag Cu Pb
Category Zn% Tonnes % g/t g/t % %
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SOUTHEAST ZONE
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2 593,000 10.7 3.42 257.5 1.50 1.49
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Measured 5 491,000 12.2 3.44 257.9 1.56 1.52
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8 351,000 14.5 3.28 243.1 1.69 1.55
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2 829,000 11.4 2.94 220.2 1.69 1.26
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Indicated 5 685,000 13.1 2.60 207.5 1.90 1.20
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8 518,000 15.2 2.28 189.1 2.04 1.18
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2 1,422,000 11.1 3.14 235.7 1.61 1.36
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Measured + Indicated 5 1,175,000 12.7 2.95 228.5 1.76 1.33
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8 869,000 14.9 2.68 210.9 1.90 1.33
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2 205,000 9.7 1.45 97.7 1.60 0.52
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Inferred 5 192,000 10.2 1.31 89.1 1.65 0.48
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8 129,000 11.8 1.35 95.4 1.72 0.55
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ABAJO ZONE
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2 376,000 9.0 2.51 174.4 0.94 1.17
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Indicated 5 313,000 10.1 2.40 181.2 0.96 1.28
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8 197,000 12.1 2.38 186.0 1.05 1.27
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2 337,000 9.6 2.98 226.1 1.02 1.37
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Inferred 5 316,000 10.0 2.98 229.7 1.02 1.39
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8 233,000 11.1 3.07 251.4 1.10 1.33
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REPLACEMENT ZONE - Southeast Area
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2 61,000 5.9 0.59 72.5 1.00 0.26
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Inferred 5 23,000 9.0 0.36 56.5 1.03 0.16
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8 18,000 9.7 0.36 34.9 1.13 0.10
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Notes: Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
A 5% Zn cutoff was used for a December 2007 preliminary assessment;
detailed engineering studies will determine the best cutoff.


At a 2% zinc cutoff, Southeast zone resources have increased to 1,422,000 tonnes of measured and indicated resources plus 205,000 tonnes of inferred resources as compared to 1,460,000 tonnes of inferred resources in November 2006 at comparable grades (see Farallon's November 14, 2006 news release). In addition, there are 376,000 tonnes of indicated plus 337,000 tonnes of inferred resources outlined in the Abajo zone.

Dick Whittington said:

"The results of the new resource estimate demonstrate the robustness of the G-9 deposit. We have upgraded 87% of the mineral resources in the Southeast zone to measured and indicated categories as well as adding to the overall resources for the zone. We have also added to the overall mineral resources of the deposit through the discovery of the Abajo zone, which is open to further expansion."

The table below shows the total resources for the G-9 deposit. The table includes the January 2008 resources for Southeast, Abajo, and Southeast Area Replacement zones (as shown above) and the November 2006 resources for Southwest, North and North Area Replacement zones (Further details from the November 2006 estimates for the latter zones are tabulated at the end of this release).



G-9 DEPOSIT MINERAL RESOURCES
ALL ZONES
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Grade
---------------------------------
Cutoff Zn Au Ag Cu Pb
Category Zn% Tonnes % g/t g/t % %
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2 593,000 10.7 3.42 257.5 1.50 1.49
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Total Measured 5 491,000 12.2 3.44 257.9 1.56 1.52
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8 351,000 14.5 3.28 243.1 1.69 1.55
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2 1,205,000 10.6 2.81 205.9 1.46 1.23
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Total Indicated 5 997,000 12.1 2.54 199.3 1.61 1.23
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8 715,000 14.3 2.31 188.2 1.77 1.20
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Total 2 1,798,000 10.7 3.01 222.9 1.47 1.32
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Measured + Indicated 5 1,488,000 12.2 2.83 218.6 1.59 1.32
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8 1,066,000 14.4 2.63 206.3 1.74 1.32
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2 4,680,000 6.3 2.83 179.2 1.14 0.98
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Total Inferred 5 2,528,000 8.8 3.15 205.6 1.36 1.21
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8 1,256,000 11.2 3.10 213.2 1.52 1.03
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Mineral resources that are not mineral reserves do not have demonstrated
economic viability.
A 5% Zn cutoff was used for a December 2007 preliminary assessment;
detailed engineering studies will determine the best cutoff.


Drilling continues at the North zone. Once the results are compiled and modeled, a new estimate for the North zone will be completed.

The resource estimates were completed for Farallon by the geological staff of Hunter Dickinson Inc. The qualified person for the resource estimate is David Gaunt, P.Geo., who is not independent of the Company. The mineral resource classifications for the January 2008 estimates were assessed by independent qualified person Qingping Deng, CPG, of Behre Dolbear & Company (USA), Inc. The qualified persons reviewed and approved the contents of this news release.

Farallon's drilling programs include rigorous quality assurance and quality control procedures under the supervision of Daniel Kilby, P.Eng., a qualified person. 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 is advancing the G-9 deposit through a parallel track program. Exploration drilling is expanding and confirming the high-grade mineralization within the G-9 deposit, and mine planning and design, equipment acquisition and site preparation activities are also taking place with the goal of beginning production in July 2008. The Company has a cash position of US$33 million, held in interest earning current accounts with Scotiabank, to support its ongoing programs.

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 and 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, continuity of mineralization, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes that the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the 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 underground workings 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.

Information Concerning Estimates of Measured, Indicated and Inferred Resources

This news release also uses the terms "measured resources", "indicated resources" and "inferred resources". Farallon Resources Ltd. advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, "inferred resources" have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral 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 pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.



SOUTHWEST, NORTH AND NORTH AREA REPLACEMENT ZONES
MINERAL RESOURCES NOVEMBER 2006
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Grade
---------------------------------
Cutoff Zn Au Ag Cu Pb
Category Zn% Tonnes % g/t g/t % %
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SOUTHWEST ZONE
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2 1,253,000 3.8 2.00 135.8 0.91 0.83
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Inferred 5 242,000 6.1 2.51 169.4 0.83 1.23
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8 14,000 8.7 2.33 182.9 0.97 1.36
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NORTH ZONE
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2 2,370,000 7.0 3.70 222.7 1.28 1.08
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Inferred 5 1,589,000 8.7 3.73 231.6 1.46 1.26
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8 788,000 11.0 3.60 230.9 1.57 1.18
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REPLACEMENT ZONE - North Area
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2 454,000 5.4 1.35 88.9 0.99 0.86
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Inferred 5 166,000 9.0 1.40 119.2 1.52 1.33
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8 73,000 12.6 1.81 158.0 2.24 2.00
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No regulatory authority has approved or disapproved the information contained in this news release.

Contact Information

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