Falcon Gold to option Burton to Trelawney
Falcon Gold to option Burton to Trelawney
2012-02-23 08:46 ET - News Release
Mr. Edward Stringer reports
FALCON GOLD OPTIONS BURTON GOLD PROPERTY TO TRELAWNEY MINING & EXPLORATION
Falcon Gold Corp. has entered into an option agreement on its Burton gold property with Trelawney Mining and Exploration Inc. The Burton gold property is located immediately west of Trelawney's property which hosts the past-producing Jerome mine and the Cote Lake deposit. The Cote Lake deposit, located approximately 38 kilometres east of the Burton property, hosts an inferred resource of 131 million tonnes grading 1.0 gram per tonne (4.22 million ounces of gold), and the Jerome mine, located approximately eight kilometres east of the Burton property, hosts an inferred resource of 18.7 million tonnes grading 1.7 grams per tonne (1.03 million ounces of gold). Under the terms of the agreement, Trelawney can earn up to a 75-per-cent interest in the Burton gold property through the successful execution of the following two stages:
- Trelawney may earn a 51-per-cent interest in the Burton property by paying $150,000 in cash to Falcon Gold and completing $600,000 in exploration expenditures on or before Feb. 16, 2013 (phase 1 of the agreement).
- Trelawney may earn an additional 24-per-cent interest by incurring an additional $600,000 in exploration expenditures on the property on or before Feb. 16, 2014 (phase 2 of the agreement).
Under the terms of the agreement, upon the completion of phase 1, Falcon Gold and Trelawney may form a joint venture on the Burton property.
Should Trelawney not complete phase 2, it will retain its 51-per-cent interest in the Burton property and the joint venture will remain in place.
Falcon Gold will act as operator for phase 1 of the agreement.
"Given the proximity of the Burton property to Trelawney's existing deposits, we are extremely pleased to be co-ordinating our exploration efforts with Trelawney in the advancement of the Burton property," said Ed Stringer, Falcon Gold chief executive officer.
It is anticipated that the first phase of exploration will be diamond drilling directed at following up historical drill intercepts as well as recently completed drilling results completed by Falcon Gold at the Shaft zone and at the East zone. Further evaluation will include property-wide exploration.
The agreement is subject to regulatory approval.
About the Burton property
The Burton property consists of six patented and 16 unpatented mining claims encompassing 22 claim units (356 hectares) and is located in the Swayze greenstone belt, Northeastern Ontario, approximately 150 kilometres south of Timmins and 180 kilometres north of Sudbury. The Swayze greenstone belt is interpreted as being correlative with the Abitibi greenstone belt which hosts the world-class Kirkland Lake and Timmins gold mining camps. The Swayze greenstone belt is an active exploration centre including the exploration and evaluation work being completed by Trelawney.
Historical diamond drill intercepts at the Burton property include 9.34 grams per tonne over an intersection length of 7.75 metres at the Shaft zone and 12.47 g/t over an intersection length of 3.13 metres at the East zone. Diamond drilling completed by Falcon Gold during 2011 included 3.74 g/t Au over an intersection length of 9.96 m (including 10.98 g/t Au over 2.17 m) and 3.25 g/t Au over an intersection length of 10.35 m (including 5.65 g/t Au over 2.85 m) at the Shaft zone (news releases of July 27, 2011, and Sept. 12, 2011).
Qualified person
Jamie Lavigne, PGeo, vice-president of exploration and director of Falcon Gold, has reviewed and verified the contents of this news release.
We seek Safe Harbor.