Falcon Gold acquires Spences Gold Belt claims
Falcon Gold Corp. [FG-TSXV; GR-3FA] has acquired the Spitfire and Sunny Boy claims in south-central British Columbia. The claims are located approximately 16 km east of Merritt and total 502 hectares. The properties are close to excellent infrastructure and access is gained via paved highway and ranch and logging roads.
The Merritt district has a lengthy history of mineral exploration and development that began in the late 1800s with first recorded discoveries being made on the Nicola Lake Property in 1908, which location is presently covered by the northeast portion of the Sunny Boy claim block.
A resurgent focus in the area makes it B.C.’s newest emerging gold belt.
The original exploration and discoveries were of gold, platinum (in tulameenite, a Pt-Cu-Fe metallic mineral) and copper. Numerous copper discoveries became major mines in the area, including Craigmont, Copper Mountain, Afton and Highland Valley.
Most of the early exploration at the project focused on quartz veins that hosted gold, copper and silver. High-grade values have been reported at 124 to 127 g/t gold and 309 to 514 g/t silver in quartz vein material from underground workings by Quilchena Mining and Development Company. The narrow but high-grade veins have been trenched, pitted, blasted, and drilled but have never been commercially mined. The main showing, Master Vein, boasts high-grade gold mineralization up to 50.53 oz/ton as sampled by Ken Sanders, P.Eng in 1974. To the southwest of the Sunny Boy Zone in an area referred to as the “AL” showing, soil geochemistry, geophysics (magnetometer/VLF), trenching, sampling and diamond drilling have been performed on the mineralized veins. The best drill result was 3.77 g/t gold, 0.24 % copper, and 32.9 g/t silver over 13.4 metres (AR #8494, AR# 15572 AR#1582, AR#18887). The project showings have been referred to as epithermal gold occurrences by past operators.
The gold mineralization and geological setting of the project bears similarities to the Prospect Valley and Shovelnose epithermal gold projects currently being explored by Westhaven Ventures Inc.
Falcon’s 2019 due-diligence work confirmed the presence of gold mineralization along the Master Vein over a 300-metre strike length with samples ranging from 0.33 to 2.74 oz/ton gold. Recent data compilation of historic exploration work suggest that the best exploration targets on the property are high-grade gold vein deposits along flexures in structure in the northeastern portion of the project. The company is planning tightly spaced soil sampling, EM and IP geophysics, and structural mapping as the best approach for identifying new mineralized structures for both gold and base metals occurrences.
To earn 100% interest, Falcon will issue 2.5 million common shares and 2.5 million warrants at a conversion price of 10 cents with a 2-year term and will make a one-time cash payment of $25,000 to the vendor on the 6-month anniversary. The vendor will retain a 2% NSR. Falcon will have the right to purchase half of the total NSR (1%), for $400,000. The transaction is subject to regulatory approval.
Falcon’s flagship project, the Central Canada gold project approximately 21.5 km east of Atikokan, about 160 km west of Thunder Bay, northwest Ontario and about 20 km SE of Agnico Eagle’s Hammond Reef Gold Deposit which has a Measured & Indicated estimated resource of 208 million tonnes containing 4.5 Million ounces of gold.