Farallon Resources Ltd.
TSX : FAN

Farallon Resources Ltd.

September 19, 2005 09:30 ET

Farallon Resources Ltd.: Updated Resources for Farallon's Campo Morado Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 19, 2005) - Farallon Resources Ltd. (TSX:FAN) -

11.2 MILLION TONNES OF INDICATED RESOURCES NOW CONFIRMED

Dick Whittington, President & CEO Farallon Resources Ltd. is pleased to announce the results of the Company's recently completed review of the mineral resources at its Campo Morado polymetallic (zinc, gold, silver, copper, lead) project in Guerrero State, Mexico.

The current review focused on the Reforma, El Rey and Naranjo deposits. When combined with the previously announced results for the El Largo deposit, the Campo Morado project now has total indicated resources of 11.2 million tonnes plus 1.5 million tonnes of inferred resources at a $90 gross metal value per tonne (GMV/t) cut-off, as shown below. Overall, the mineral resources for the project have increased nearly 30% from the estimate of 9.2 million tonnes of inferred resources in July 2004. In addition, 88% of the resources at Campo Morado are now considered to be in the indicated category.



CAMPO MORADO TOTAL MINERAL RESOURCES
SEPTEMBER 2005

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Classifi- GMV/t(1) Tonnes Au Ag Cu Zn Pb
cation Cutoff (000's) (g/t) (g/t) (%) (%) (%)
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Indicated $ 60 20,158 2.00 125.46 0.65 3.80 1.07
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$ 90 11,209 2.67 165.92 0.67 4.66 1.44
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$120 5,659 3.67 222.39 0.74 5.25 1.88
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Inferred $ 60 2,592 1.63 99.87 1.04 2.77 0.62
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$ 90 1,510 1.98 119.06 0.88 3.65 0.79
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$120 335 2.40 161.47 0.77 4.92 1.14
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(1) GMV/t is grade times metal price using US$0.51/lb for Zn,
US$1.00/lb for Cu; US$0.25/lb for Pb, US$375/oz for Au and
US$5.50/oz for Ag.


Following the continued success of the drilling program at Campo Morado that commenced in August 2004, Behre Dolbear & Company (USA) Inc. ("Behre Dolbear") was retained by Farallon to update the estimates of the mineral resources for the project. Qingping Deng, PhD, CPG, of Behre Dolbear, an independent qualified person as defined by National Instrument 43-101, is responsible for the resource estimates. A technical report will be filed in 30 days at www.sedar.com.

The database for Reforma now consists of 110 diamond core holes with a total drilled length of 21,154 metres; for El Rey, the database consists of 42 diamond core holes with a total drilled length of 8,496 metres; and for Naranjo, it consists of 107 diamond core holes with a total drilled length of 23,941 metres. Drill hole spacing in each deposit is approximately 50 metres.

Geological modeling shows that the main Reforma sulphide body has a tabular shape, striking east-west and dipping moderately to the south at an average angle of 40 degrees. The main body measures about 760 metres along strike, extends 60 to 350 metres in the dip direction and is 2 to 50 metres thick. This sulphide body is penetrated by 76 drill holes and has excellent continuity.

The Naranjo deposit is comprised of two main sulphide bodies, generally striking east-west and dipping shallowly to the south at an average angle of 17 degrees. The largest body extends 500 metres in the dip direction and 75 to 240 metres along strike, and is 5 to 75 metres thick. It is penetrated by 31 drill holes and has good continuity. The second body is penetrated by 9 drill holes.

The primary El Rey sulphide body is tabular in shape and nearly horizontal; it extends about 250 metres in the east-west direction, 200 to 250 metres in a north-south direction and is 2 to 35 metres thick. It has been penetrated by 26 drill holes and has good continuity.

The results of the estimates for the Reforma, Naranjo and El Rey deposits at various GMV/t cut-offs are shown in the attached tables. There are no significant changes to the global resources for each of these deposits; however, the majority of the resources have been upgraded to an indicated from an inferred category. Mineral resources for the El Largo deposit, as announced in June, are included for completeness. Drilling at El Largo in 2004 and 2005 resulted in an expansion of the El Largo deposit, leading to the overall increase in mineral resources for the project.

Dick Whittington said, "This significant development, in combination with the positive results from metallurgical testing, brings us closer to our goal of building a mine at Campo Morado by 2009. These resources and their classification now fully support the technical and economic requirements to complete the Pre-Feasibility study that is underway. This reduces a major element of risk from the project and gives us the basis to go ahead with our detailed mine planning and processing studies. We can now focus on optimizing the engineering aspects in time to finish the Pre-Feasibility study by the first quarter of 2006. In addition, we are continuing to make exiting new discoveries, such as the new deposit at G-9. We are confident that further drilling will result in another higher grade deposit at G-9, adding to the resources and long term potential of the Campo Morado project."

Farallon's drilling programs include rigorous quality assurance and quality control ("QA/QC") procedures under the supervision of qualified persons. The in-house qualified person for the drilling program at Campo Morado is Daniel Kilby, P.Eng. 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$14.1 million. Based on the success of the Company's 2004-2005 exploration and engineering programs, Farallon's Board of Directors approved a new budget of $10.4 million that will enable the Company to complete its current drilling program and conclude a Pre-Feasibility Study by 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.

Cautionary Note Concerning Estimates of Indicated and Inferred Resources

This news release also uses the terms 'indicated resources' and 'inferred resources'. Farallon advises U.S. 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. U.S. 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. U.S. investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.



CAMPO MORADO MINERAL RESOURCES
At September 2005

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GMV/t Dens-
(1) ity
Classifi- Cut- Tonnes Au Ag Cu Zn Pb (t/
Deposit cation off (000's) (g/t) (g/t) (%) (%) (%) m3)
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REFORMA Indicated $ 30 9,183 2.22 129 0.86 2.49 0.93 3.86
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$ 60 6,050 3.15 175 0.90 3.30 1.33 3.96
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$ 90 3,972 4.20 224 0.92 3.86 1.71 4.03
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$ 120 2,705 5.23 276 0.91 4.24 2.06 4.07
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$ 150 1,883 6.11 322 0.93 4.56 2.37 4.07
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Inferred $ 30 21 1.02 169 0.29 0.44 1.46 2.83
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$ 60 13 1.48 248 0.20 0.05 2.10 2.69
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$ 90 1 1.31 392 0.24 0.04 0.50 2.62
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GMV/t Dens-
(1) ity
Classifi- Cut- Tonnes Au Ag Cu Zn Pb (t/
Deposit cation off (000's) (g/t) (g/t) (%) (%) (%) m3)
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EL REY Indicated $ 30 2,874 1.51 84 0.53 2.81 0.62 4.16
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$ 60 1,668 2.17 121 0.49 4.04 0.97 4.24
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$ 90 1,051 2.74 154 0.52 4.45 1.20 4.25
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$ 120 520 3.66 193 0.56 4.98 1.41 4.25
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$ 150 227 4.61 235 0.58 5.55 1.65 4.24
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Inferred $ 30 34 1.27 67 0.57 3.11 0.78 4.01
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$ 60 15 2.37 91 0.54 4.63 1.47 4.00
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$ 90 15 2.37 91 0.54 4.63 1.47 4.00
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GMV/t Dens-
(1) ity
Classifi- Cut- Tonnes Au Ag Cu Zn Pb (t/
Deposit cation off (000's) (g/t) (g/t) (%) (%) (%) m3)
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NARANJO Indicated $ 30 8,286 1.32 74 0.73 2.00 0.52 4.21
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$ 60 4,035 2.10 104 0.81 3.14 0.88 4.29
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$ 90 2,056 2.77 136 0.82 4.12 1.24 4.34
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$ 120 909 3.52 181 0.97 5.04 1.71 4.30
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$ 150 418 4.54 239 1.21 5.43 2.11 4.19
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Inferred $ 30 649 2.54 78 0.97 1.02 0.32 4.10
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$ 60 423 3.14 95 1.10 1.42 0.41 4.21
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$ 90 236 4.28 104 1.05 1.76 0.50 4.34
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$ 120 74 5.56 149 1.18 1.59 0.57 4.32
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$ 150 20 6.50 350 0.29 1.60 1.20 3.74
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GMV/t Dens-
(1) ity
Classifi- Cut- Tonnes Au Ag Cu Zn Pb (t/
Deposit cation off (000's) (g/t) (g/t) (%) (%) (%) m3)
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El
Largo Indicated $ 30 12,884 0.99 76 0.46 3.26 0.72 4.15
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$ 60 8,405 1.10 101 0.42 4.44 0.99 4.16
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$ 90 4,130 1.12 128 0.40 5.76 1.33 4.18
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$ 120 1,525 1.01 162 0.37 7.26 1.81 4.21
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$ 150 364 0.92 192 0.36 8.91 2.26 4.20
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Inferred $ 30 2,947 1.16 83 1.02 2.40 0.52 3.73
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$ 60 2,141 1.33 100 1.04 3.04 0.65 3.79
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$ 90 1,258 1.54 122 0.85 3.99 0.84 3.91
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$ 120 261 1.51 165 0.66 5.87 1.30 3.90
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$ 150 31 1.18 177 0.41 7.99 1.77 3.92
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(1) GMV/t is grade times metal price using US$0.51/lb for Zn,
US$1.00/lb for Cu; US$0.25/lb for Pb,US$375/oz for Au,
US$5.50/oz for Ag.


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

Contact Information

  • Farallon Resources Ltd.
    Dick Whittington
    President & CEO
    (604) 684-6365 or Toll Free: 1-800-667-2114
    or
    Farallon Resources Ltd.
    Investor Services
    (604) 684-6365 or Toll Free: 1-800-667-2114
    (604) 684-8092 (FAX)
    www.farallonresources.com