Vancouver, B.C., July 17, 2018. FALCON GOLD CORP. (FG: TSX-V) (“Falcon” or the “Company”) is pleased to announce it has signed a Definitive Agreement (the “Agreement”) for the right to acquire an initial 80% interest in the Esperanza Resources S.A. (“ERSA”) mineral concessions located in La Rioja Province, Argentina. The Property is comprised of seven (7) contiguous mineral concessions covering an aggregate area of 20,461 hectares (“ha”) and is located within the Sierra de Las Minas District which is known to be host to several past producing gold and silver mines.
The ERSA Concessions
The Property is about 50 kilometres (“km”) south-southeast of the town of Chepes and the city of San Juan is about 250 km by highway to the west-southwest.
Gold mineralization was reportedly first discovered within the district in or about 1865 at the Callanas occurrences with limited mining conducted on gold, silver and copper zones. Other sites of historic small-scale mining within the ERSA concessions include: the El Espinillo, Callanas East and West, El Abrita, Cerro Alto, Las Lajas and San Isidro gold mineralized zones.
The Japanese agency, JICA completed 900 metres of diamond drilling in the Callanas area during the 1990’s. Two of the holes returned encouraging intercepts assaying 1 metre(m) @ 9.11 grams per tonne gold (“g/t Au”), 28.59g/t Ag and 0.42m @ 24.3g/t Au, 61.10g/t Ag. More recently, ERSA has reported that the Callanas West zone has been mapped along a northwest-southeast strike for approximately 4,000 metres.
The Company completed a limited sampling program as part of its due diligence. From the Callanas East trenches, results included a 1-meter vein sample that returned 5,619 ppb (5.6 g/t) Au. A 2.5m continuous chip sample from the north end of the Callanas West exposure showed 5,905 ppb (5.9 g/t) Au, 20.6 ppm Ag and 0.29% Cu.
The Option Agreement
In its news release dated October 3, 2017, Falcon first announced an option letter agreement for the ERSA’s 11 concessions. Through the course of its due diligence and review of the status of the mineral concessions, the Company elected to option only 7 of the 11 concessions. The payments of cash and shares and the minimum work commitment were similarly reduced. Under the current Agreement, the Company can earn an 80% interest by making escalating annual payments over a six-year option period totalling US$500,000 (US$10,000 has been paid) and issuing a total of 4 million Falcon common shares. During the six-year option period, Falcon is to make minimum expenditures on the Property amounting to US$1,750,000.
After acquiring its 80% interest, Falcon will have the right for a period of 24 months, to acquire ERSA’s residual 20% interest (for a total Falcon ownership of 100% of the Property) for a further payment of US$4.0 million and a 1% Net Smelter Return royalty. The Agreement is subject to TSX Venture Exchange approval.
About Falcon Gold Corp.
Falcon is a Canadian based mineral exploration company focused on generating, acquiring, and exploring opportunities in the Americas. Its Ontario, Canada projects include: the Central Canada cobalt, copper, gold project; the Coomer Lake vanadium project; the Wabunk cobalt, copper project, and the Burton gold property. Falcon also has an agreement to acquire 20,461 hectares within the Sierra de Las Minas District, Argentina which has hosted several past producing gold, copper and silver mines.
Falcon Gold Corp.
CEO & Director
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.[/vc_column_text][/vc_column][/vc_row]