MONTREAL, QC–(Marketwired – April 26, 2016) – Falco Resources (TSX VENTURE: FPC) (“Falco” or the “Company”) is pleased to announce that it is starting a new surface drilling program at the Company’s 100% owned Horne 5 project. Two diamond drill rigs will be active on the property, targeting the Horne 5 western extension with 10,000 meters of drilling aimed at expanding the current resource in the Horne 5 western extension, and 10,000 meters planned to explore the Quemont extension.
HORNE 5 WESTERN EXTENSION PROGRAM
The Horne 5 western extension drilling program will consist of drilling 2 wedges from the existing H5-15-09 pilot hole and drilling 3 additional pilot holes and 5 additional wedges. The 10 holes program will target an area located between 600 meters – 1,200 meters below surface and located to the west of the existing Horne 5 resource. The most western intercept of the 2015 confirmation drilling program returned 45.1 meters averaging 3.4 g/t AuEq (2.0 g/t Au) and 43.7 meters averaging 2.6 g/t AuEq (1.4 g/t Au) (see Falco press release dated November 23, 2015 www.sedar.com).
The new drill program is primarily designed to target potential gold mineralization to increase the current size of the Horne 5 gold deposit. The targeted extension is essentially located below Level 17 and above Level 33 (1,200m), where 44% of the Au Eq Indicated resources of the Horne 5 deposit is currently hosted (see Falco press release dated January 25, 2016 www.sedar.com).
“We are excited to announce the commencement of the western extension drilling. Drilling will focus on expanding resources in zones which have never been tested, but that have been identified as high priority by our geological team,” commented Company President and CEO, Luc Lessard.
QUEMONT EXTENSION PROGRAM
The Company will also commence a 10,000 meter drilling program on the Quemont extension target. The program will target the western plunge of the historical Quemont deposit, where over 3.2 million ounces of gold was produced from 1949 et 1971 (15.4 M tonnes at 6.5 g/t Au, 2.4% Zn, 1.3% Cu and 30.8 g/t Ag).
The mineralization at Quemont is hosted within massive, aphanitic lava flows of dacitic to rhyolitic composition. Historical work shows that the major structural control appears to be fractures within a westerly plunging anticline. The plunge of this anticline is practically flat to reverse in the upper portion of the mine to produce a dome-like capping of porphyritic rhyolite over the ore zones. The ore at Quemont is of two types; massive sulfides and disseminated sulfides in highly chloritized zones. The recent intercepts of the Quemont mineralisation were essentially composed of massive pyrite and sphalerite with few chalcopyrite (see Falco press release dated November 19, 2015).
PRELIMINARY ECONOMIC ASSESMENT UPDATE:
Falco initiated a Preliminary Economic Assessment (the “PEA”) at Horne 5 in November of 2015 after completing its initial infrastructure evaluation. Following the reception of positive floatation and leaching results, we awarded the contract to BBA Inc., and it includes oversight from Luc Lessard, Robert Wares, Francois Vezina and Christian Laroche, Osisko Mining Group’s technical team and contributions from InnovExplo, Golder, WSP, and ASDR, all which are Quebec based.
As of April 25, 2016, all field-related PEA programs, including drilling, were complete and engineering work is well underway. The PEA tracking on schedule and budget, estimated completion date remains Q2, 2016.
Falco Resources Ltd. is one of the largest mineral claim holders in the Province of Québec, with extensive land holdings in the Abitibi Greenstone Belt. Falco owns 74,000 hectares of land in the Rouyn-Noranda mining camp, which represents 70% of the entire camp and includes 13 former gold and base metal mine sites. Falco’s principal property is the Horne Mine, which was operated by Noranda from 1927 to 1976 and produced 11.6 million ounces of gold and 2.5 billion pounds of copper. A updated 43-101 mineral resource estimate for the Horne 5 deposit delineated an Indicated Resource of 5,361,000 gold equivalent ounces (“oz AuEq”), including 3,418,232 oz Au hosted in 58.3 million tonnes averaging 2.86 g/t AuEq (1.82 g/t Au; 15.60 g/t Ag; 0.20% Cu; 1.00% Zn) and an Inferred Resource of 1,254,000 oz AuEq, including 854,534 oz Au hosted in 12.7 million tonnes averaging 3.08 g/t AuEq (2.10 g/t Au; 26.26 g/t Ag; 0.22% Cu; 0.57% Zn.) — see January 25th, 2016 press release for details.
Neither the 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 press release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (together, “forward-looking statements”) within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are forward-looking statements. Generally, forward-looking statements can be identified by the use of terminology such as “plans”, “expects’, “estimates”, “intends”, “anticipates”, “believes” or variations of such words, or statements that certain actions, events or results “may”, “could”, “would”, “might”, “will be taken”, “occur” or “be achieved” and includes, the outcome of any drilling on the Horne 5 western extension or the Quemont extension. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include the reliability of the historical data referenced in this press release and those risks set out in Falco’s public documents, including in each management discussion and analysis, filed on SEDAR at www.sedar.com. Although Falco believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by applicable law, Falco disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Cautionary Note Concerning Mineral Resources
This press release uses the term “inferred” resources and “indicated resources”, we advise investors that while this term is recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize it. “Inferred” resources and “indicated resources” have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred 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 other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.
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