Falcon Gold (TSXV: FG) announced that it has entered into a memorandum of understanding to acquire two large patented claim blocks in Ontario from Great Lakes Exploration.
In a press release, the miner said that the transaction includes 476 hectares of patented mining claims including patented surface rights. The patented lands lie along strike of Falcon’s Central Canada project. The claims cover 8,400 metres of strike length of mineralized magnetite-sulphide lenses varying from less than 10 to greater than 40 metres in width.
THE 3,200-HECTARE CENTRAL CANADA PROJECT CONSISTS OF 13 CLAIMS LOCATED APPROXIMATELY 21.5 KILOMETRES EAST OF ATIKOKAN, ONTARIO
According to Falcon Gold, past exploration by Monteagle Explorations, Kemins Exploration, and Paulpic Gold Mines, including airborne and ground geophysics, has outlined various anomalies which indicate potential untested extensions of base metal magnetite mineralization.
“In the central portion of the claims, historic drilling and surface trenches tested a portion of a 1,900-metre-long magnetic and conductive anomaly, and encountered thick sections of massive sulfide and magnetite, with up to 41 meters of drilled zone intercept and Cu grades up to 0.61% and Co grades up to 0.15% in surface trenches,” the media brief states. “Although Ni and Co grades were not reported in historic drilling, surface sampling by GLE and the Ontario Geological Survey returned significant grades of Ni up to 0.37% and Co up to 0.24%.”
Under the terms of the MOU, Falcon can earn an option to acquire 80% interest by making a payment of $25,000 within 45 days of signing a definitive agreement, making option payments of $45,000 to maintain the patented properties, and incur minimum $146,900 expenditures on the property within the first 18 months.
The miner also has to issue 500,000 common shares at a deemed price of $0.05 cents a share and 500,000 purchase warrants at a conversion price of $0.10 cents for a two-year period.
“This MOU furthers Falcon’s vision to consolidate the lands on the Central Canada Belt for the first time under one company. This ground is a strategic acquisition for Falcon as we continue to develop the Central Canada project,” the company’s CEO, Karim Rayani, said in a statement. “We have now secured the necessary land position, including the known occurrence of certain mineralization, to quickly advance the project and seek to expand the size and economic potential for base and precious metals.”