Gaspard Gold Project in Central BC - Falcon Gold Corp

GASPARD GOLD PROJECT IN CENTRAL BC.

Falcon’s Gaspard Property comprises 3 mineral claims, covering 3,955 hectares (“ha”) in the Clinton Mining District of central British Columbia.  The Property has year-round, all-season road access with a good network of active logging roads.  The City of Williams Lake located 60 kilometers (“km”) northeast of the Property is a regional supply centre for mining, logging and ranching.

The SBGB forms a northwest trending belt of Eocene-age, volcaniclastic and sedimentary rocks more than 430 km long and up to 24 km wide extending to the north east from town of Princeton.  The volcanic units are dominated by dacitic to rhyolitic volcaniclastic rocks, breccias and domes that are well known to host significant gold occurrences.  The volcanic sequence observed on the Gaspard Gold Claims includes a low-dipping dacitic flow unit overlain by a central volcaniclastic rhyolitic unit capped by basalts.  The Property is located immediately east of the northernmost mapped limit of the Spences Bridge Group, in an area that is presented on regional BC geological maps as unnamed Eocene-age, intermediate to felsic volcaniclastic rocks bearing remarkable similarity to the Spences Bridge Group.

The closest gold deposit to the Property is located approximately 26 km to the south and is the Blackdome gold mine project.  The Blackdome reportedly has resources of 144,500 tonnes (“t”) Indicated grading 11.29 grams per tonne (“g/t”) gold and 50.01 g/t silver, and 90,600 t Inferred grading 8.79 g/t gold and 18.61 g/t silver (as currently reported by Tempus Resources Ltd.)  The Blackdome mineralization is characterized as volcanic- hosted epithermal gold and silver class and may represent the target-type for the Gaspard Gold Claims. 

The Gaspard Gold Claims are mostly covered by unconsolidated glacial deposits with only about 3% outcrop exposures.  Historical work has included both stream sediment sampling and soil sampling in the northern part of the claims group that successfully discovered gold geochemical anomalies.  Discovery Consultants Ltd. was hired during the 1990 field season to collect eleven (11) heavy mineral stream sediment samples.  This survey covered four creek drainages on the current Gaspard 3 claim from the base to headwaters.  A follow-up survey consisting of 212 “B-Horizon” soil geochemistry samples was also completed.  Anomalous grades of the stream sediment samples returned from 94 ppb Au to 5,910 ppb Au within 4 adjacent streams, defining a continuous gold anomaly over an upstream distance of 1.8 kilometers.  Anomalous B-Horizon soil samples assayed by standard fire assay ranged up to 1127 ppb Au and confirmed the findings of the stream sediment survey.  In combination, the gold anomaly defined gold anomaly is defined over a surface area of 1800 m x 1200 m and much of the claims to the south east remain to be tested.

Next Steps for the Gaspard Gold Claims

In an internal report by the vendor, the next recommended steps include an initial high-resolution helicopter-borne magnetic survey to provide further definition over the claims area, including 320 kilometers of flight lines, with a flight line spacing of 150m along East-West oriented flight lines, with N-S oriented tie-lines.  The E-W oriented flight lines are optimal for the delineation of both northeast and northwest trending structures.  Also, a further 60 regular and 60 heavy mineral stream sediment samples are required over the areas of deep overburden cover across the remaining Gaspard Property.  In addition, more prospecting, mapping and sampling of the brecciated rhyolite with quartz vein stockwork is needed to determine the source (or sources) of the gold stream and soil anomalies.  The same report suggested that these next steps would require a budget of approximately $250,000 and should result in well-defined gold mineralization drill targets.

Qualified Person

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

The Acquisition Agreement

To acquire 100% interest in the Gaspard Gold Claims, the Company shall pay to the Vendor as follows:

  1. $15,000 within fifteen (15) days of the Effective Date where the Effective date occurs within 5 days following regulatory approval of the acquisition;
  2. 200,000 common shares in the Company within fifteen (15) days of the Effective Date; and,
  3. 200,000 warrants at $0.20 per share for a 2-year term within fifteen (15) days of the Effective Date.

Falcon has further committed to complete $34,000 in exploration expenditures on the property during the 2021 field season.  In addition, the vendor will retain a two percent (2%) on Net Smelter Returns royalty (“NSR”) on the Property.  Falcon may at any time purchase 1% of the NSR for $1,500,000.

All the Falcon shares and share purchase warrants issued will be subject to a 4 month hold from the date of issuance.