Falcon Signs Agreement on Wabunk Bay Cobalt Claims Adjoining Uchi Mine, Northwestern Ontario

By Anwesha Sengupta

HIGHLIGHTS:

  • Located in historic Uchi gold mining camp;
  • Strategically close to important infrastructure including road access and electrical power line;
  • Historical surface sampling & shallow drilling on numerous occurrences of cobalt, copper, nickel and platinum group metals (“PGM’s”);
  • Reported trench samples assayed 0.33% cobalt over 1.5meters and 0.15% cobalt over 7.6meters; and
  • Low cost of entry and acquisition.

Falcon Gold Corp. (TSXV:FG) (“Falcon” or the “Company”) reports it has signed a letter agreement (the “Letter”) for the right to acquire a 100% interest in 2 (cobalt, copper, nickel & PGE’s) mining claims in Earngey Township in the Red Lake District of northwestern Ontario. The claims comprise 19 claim units and cover an area of approximately 304 hectares.

Stephen Wilkinson, Falcon’s CEO stated; “The Wabunk Bay property adjoins the Uchi gold mine patents on the east. Since the discovery of the sulphide mineralization about 85 years ago, the occurrences have received limited attention from mining companies. Our team has identified economically attractive grades of the historic cobalt (“Co”) occurrences reported in files and publications of the Ontario Ministry of Northern Development and Mines. We are confident that our crews will have exploration success and we have begun planning the inaugural program to commence this summer.”

The Wabunk Bay Property

The Property is located immediately east of the past producing Uchi gold mine in northwestern Ontario. Access is by an 8-kilometre (“km”) bush road that intersects with the South Bay copper zinc mine access road. The access road connects with Provincial Highway 105 at the town of Ear Falls approximately 70 km southwest. A hydroelectric power line occurs just north of the Property.

The Property is within the Archean-age Birch-Uchi-Confederation Lakes greenstone belt. This belt hosts the world renowned Red Lake gold deposits that are approximately 80 km west of the Property. The Uchi Lake Fault Zone (the “ULFZ”) is a southwest to northeast regional structure and is mapped about 200 meters east of the claims. Underlying the claims are greenschist-grade mafic metavolcanic and gabbroic intrusive rocks. Sulphide mineralization occurs as massive lenses and disseminations hosted by the gabbros.

A number of small gold mines were developed in the Birch-Uchi-Confederation Lakes greenstone belt during the 1930s. These included the Uchi Mine, which produced 114,000 ounces of gold, and the Jackson-Manion Mine (27,000 ounces of gold). The South Bay mine was an underground copper-zinc operation that produced from 1971 to 1981.

Wabunk Bay Sulphide Mineralization

In 1957, the Ontario Department of Mines reported in its Mineral Resource Circular No. 2 (“MRC 2”):

“The showings occur entirely within a coarse-grained hornblende gabbro cutting greenstone, sediments, and various intrusive rocks. The gabbro is 200 feet wide and has a maximum width of 300 feet. The southern 1,000 feet of this body strike north then swing to the northwest for an additional length of 1,800 feet. Chalcopyrite, pyrrhotite, and pyrite occur where the gabbro is sheared and especially at the contacts of narrow diabase dikes, which strike north to northeast and are younger than the gabbro.”

The MRC 2 further reported on the Wabunk Bay mineralized zones:

“The main showing lies in the north-south portion of the gabbro, strikes near north, and is about 300 feet long; although mineralization is not continuous, it is found along a length of 600 feet. The average width of mineralization cut in five drill holes is 21 feet. An 18-foot chip sample ran 1.08 percent copper and 0.40 percent nickel. A 22-foot chip sample ran 0.44 percent copper and 0.12 percent nickel. The best 25 feet of drill core assayed 0.62 percent copper and 0.04 percent nickel. Core assays gave as high as 0.03 percent cobalt.”

Wabunk Bay Exploration History

The history of exploration work in the area of the Wabunk Bay Cobalt Claims is summarised as follows:

  • 1941 — Sulphide mineralization is discovered by Mike Colberg
  • 1955 — A prospector, Joe Kolak, restaked the showings and optioned the property to Campbell Island Mines and Exploration Ltd. Work completed included geophysical surveys, trenching and 6 diamond-drill holes, totalling 390 feet in 1956. Surface samples assayed 0.33% Co over 1.5m and 0.15% Co over 7.6m.
  • 2003 Jilbey Gold Exploration Ltd. carried out a large regional recognisance program in the greenstone belts south and east of Red Lake, Ontario. The Wabunk Bay area was covered by an airborne geophysical survey that identified two magnetic and conductive anomalies.

Option Terms

To earn its 100% interest, Falcon has agreed to issue a total of 300,000 common shares and to make cash payments totalling $200,000. Subsequent to Falcon acquiring its 100% interest, the vendor will retain a 1% Net Smelter Return (“NSR”) that Falcon will have the right to purchase for $1,000,000 at any time up to commencement of production. The agreement is subject to TSX Venture Exchange approval.

Qualified Person

The technical content of this news release has been reviewed and approved by Mr. Bob Chataway, P. Geo., who is a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About Falcon Gold Corp.

Falcon is a Canadian mineral exploration company focused on acquiring, exploring, and advancing quality mineral projects in the Americas. Its projects include, the Central Canada Cobalt and Gold Project in N.W. Ontario and the Burton gold property located northwest of Sudbury, Ontario. The Company is listed on the TSX Venture exchange with the trading symbol: “FG”. For information on the Company, please visit our website: www.falcongold.ca.

CONTACT INFORMATION:

Falcon Gold Corp.
David Tafel
Chairman

Stephen Wilkinson
CEO & Director

Telephone: 604-683-1991
Email: info@falcongold.ca

Cautionary Language and Forward-Looking Statements

This news release may contain forward looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, etc. Forward looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Neither 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 release.

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