Falcon Gold (TSXV: FG) this morning announced the expansion of its exploration portfolio, acuiring what is referred to as the Spitfire and Sunny Boy claims which are located in central BC. The claims consist of 502 hectares located 16 kilometers east of Merritt, BC.
The property itself is close to excellent infrastructure, with access available via paved highway as well as ranch and logging roads. The district has a storied history, with some of the first recorded discoveries in the area, such as the Nicola Lake property, being covered by the north east portion of the Sunny Boy claim.
Numerous mines are near the Spitfire and Sunny Boy claims, with exploration and discoveries nearby including gold, platinum and copper. Some of those copper discoveries in the area became major mines, which includes Copper Mountain, Afton, Craigmont, and Highland Valley.
In terms of mineralization on the property, most of the early exploratory work on the project focused on quartz veins that hosted gold, copper and silver. High grade values of minerals reported include 124 to 127 grams per tonne gold and 309 to 514 grams per tonne silver in certain quartz vein material by Quilchena Mining and Development Company. The main showing, referred to as the master vein, has high grade gold mineralization up to 50.53 ounces per tonne, as sampled by Ken Sanders, P. Eng in 1974.
The narrow but high grade veins on the property have never been commercially mined, however they have been trenched, pitted, blasted, and drilled.
Falcon’s own due-diligence on the property, which was conducted in 2019, confirmed the presence of gold mineralization with samples ranging from 0.33 to 2.74 ounces per tonne gold along the master vein over a 300 metre strike length. Data compilation work of historic exploration results suggest that the best targets for exploration on the property are high-grade gold vein deposits along flexures in structure in the northeastern portion of the project.
Falcon is currently planning tightly spaced soil sampling, EM and IP geophysics, and structural mapping as a means of identifying new mineralized structures for gold and base metals.
The Spitfire and Sunny Boy land claims were acquired in exchange for 2.5 million common shares of Falcon Gold as well as 2.5 million warrants. Each warrant has an exercise price of $0.10 and a term of two years. A cash payment of $25,000 is also due to the vendor on the six month anniversary of the acquisition, while a 2% net smelter royalty is also being retained. Falcon has the right to purchase 1% of that royalty back for a one-time payment of $400,000 prior to commencement of production.
Falcon Gold last traded at $0.04 on the TSX Venture.
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