Farallon Resources Ltd.

Farallon Resources Ltd.

April 16, 2007 09:01 ET

Farallon Announces Results of Metallurgical Testing on High Grade Mineralization at the G-9 Deposit, Campo Morado, Mexico:

Zinc recovery of 94% at 54% zinc concentrate grade Copper recovery of 84% at 24% copper concentrate grade Coarser mill feed grinds and concentrate regrinds also achievable

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 16, 2007) - Dick Whittington, President & CEO of Farallon Resources Ltd. (TSX:FAN), is pleased to announce the results from the fourth phase of the flotation test program for the G-9 deposit at its polymetallic (zinc, gold, silver, copper, lead) Campo Morado property, Guerrero State, Mexico. These new results are from tests conducted exclusively on samples of high grade (15.5% zinc and 2.3% copper) mineralization from the Southeast zone - the high grade starter zone that is planned to be mined and milled during the first two to three years of operation at G-9. These results both affirm and significantly improve upon the previously announced results from the first three phases of work (News Releases dated April 30, 2006, May 17, 2006 and October 24, 2006). The information derived from these new tests fully supports the process design criteria, flowsheet design and reagent consumption estimates that are currently being used for detailed mill design.

The objectives of the phase four program were:

- to perform batch rougher and cleaner tests on the high grade mineralization at G-9 to reaffirm the initial processing criteria from previous tests.

- to reaffirm that the design flowsheet configuration being used for mill design would apply to the high grade starter zone;

- to perform "locked cycle" tests to establish likely metallurgical performance of the high grade mineralization; and

- to perform feed grind and concentrate regrind tests to enable appropriate feed grinds to be adopted for the initial years of mine production.

Two marketable concentrates were produced from samples representing the Southeast zone of the G-9 deposit. The samples were derived from drill holes 576, 578 and 580. Twenty four individual intercept samples were taken from these three holes. The samples were crushed, screened and homogenized and combined into a single composite sample. Two representative sub-samples were taken from the composite and were the subject of the metallurgical testing covered in this news release.

The samples were prepared by ALS Chemex in Guadalejara, Mexico and G&T Laboratories (G&T) in Kamloops, British Columbia, Canada. Modal and chemical analyses were undertaken prior to bench scale flotation tests. The flotation tests were carried out by G&T in Kamloops.

The new results indicate that a zinc concentrate grade of 54% Zn can be achieved with a 94% zinc recovery. Similarly, a copper concentrate grade of 24% Cu can be produced with an 84% copper recovery. No lead concentrate was produced from these tests due to the low lead feed grade. The master composite flowsheet design, feed grinds, reagent usage and test results are shown in the attached diagram and tables. The full report on the current test program will be posted on the Company's website when completed at the end of the month.

When compared with previously announced results (News Release dated October 24, 2006), the results from the high grade test program produced significant overall improvements in metallurgical performance. Previous G-9 tests were performed on samples representative of the "average" grade of the deposit (7.87% zinc and 1.35% copper) whereas the phase four program tested significantly higher feed grades (15.5% zinc and 2.3% copper). The higher grade mineralization produced exceptionally high zinc recoveries at very marketable concentrate grades and is a marked improvement on the previous results (94% recovery at 54% Zinc concentrate grade versus 86% recovery at 55% zinc concentrate grade). The copper concentrate results are also significantly enhanced from previous results (84% recovery at 24% copper concentrate grade versus 69% recovery at 20% copper concentrate grade). Further, a modest improvement in the overall silver recovery was achieved (63% versus 48%). These results add significant value to the project, in particular, because they reflect the expected grades in the initial years of any mine development. The zinc recoveries are materially improved; however, the marketability of the higher copper concentrate grade and the benefits of the improved copper recovery will also materially improve G-9's overall project economics.

This phase of testwork also examined the effects of flotation feed grinds and concentrate regrinds on metallurgical performance. The table below shows the grinds that were applied in the locked cycle tests.

Product Grinds for Locked Cycle Tests
High Grade and Average Grade Mineralization
P80 microns
Product High Grade Average grade
Flotation feed 87 36
Copper rougher concentrate 14 10
Zinc rougher concentrate 18 10

A comparison between the test results on the "high grade" mineralization and mineralization representing the "average" grade of the deposit is shown in the table. The results indicate that significantly coarser grinds can be adopted for the high grade starter zone. The coarser grinds, which will now be incorporated into mill design for the initial years, will result in both energy cost savings and improved concentrate settling and filtration characteristics.

Dick Whittington said:

"I am particularly pleased with these latest results, as they complement perfectly the recent successes in our diamond drill program, which is expanding the Southeast zone and thus the potential for increasing the duration of the period during which high grade mineralization would be mined. The improved concentrate grades and recoveries achievable with the high grade mineralization will add further value in the crucial initial years of any future mine production. More importantly, this will decrease the project payback period. These concentrate grades will also maximize our ability to negotiate favourable concentrate sales agreements with prospective buyers. Once again, I would like to commend the staff of G&T and Peter Taggart for their ongoing, excellent work."

The in-house qualified person for the drilling program and selection of samples for metallurgical testwork at Campo Morado is Daniel Kilby, P.Eng. The independent qualified person in charge of the flotation testwork is Peter Taggart, P.Eng. Both of the qualified persons have reviewed and approved the contents of this news release.

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.

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.


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 underground mining 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, Company and the risk factors inherent in its business, investors should review the Company's Annual Information Form at www.sedar.com.

To view the diagram and tables accompanying this press release please click on the following link: http://www.ccnmatthews.com/docs/Farallon%20Diagram.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 within North America 1-800-667-2114
    (604) 684-8092 (FAX)
    Website: www.farallonresources.com