VANCOUVER, BRITISH COLUMBIA–(Marketwired – Aug. 15, 2013) – Falco Pacific Resource Group Inc. (“Falco Pacific” or the “Company”) (TSX VENTURE:FPC) is pleased to announce that it has finalized an option agreement (the “Option”) with Vior Inc. (“Vior”) (TSX VENTURE:VIO) to acquire an undivided 100% interest in 34 claims (1,331 hectares) which comprise the Beauchastel Gold Property (NR 12-14). The Property is located in the Flavrian Gold District and is an interlying property to the Company’s holdings in the district, located in the west central portion of the Rouyn-Noranda camp.
Several regional gold bearing structures cut through the Flavrian Gold District, the two most important being the Quesabe fault and Twin Lakes fault. These fault systems have historically displayed high gold grade production which includes the Quesabe, Silidor, Elder and Beauchemin Mines.
- Quesabe (Falco Pacific Owner – formerly Cambior): 109,000 tonnes at 10.1 grams per ton gold;
- Silidor (formerly Noranda): 2.9 million tonnes at 5.1 grams per ton gold;
- Beauchemin (formerly Cambior): 1.85 million tonnes at 5.31 grams per ton gold;
- Elder (formerly Elder Mines): 2.02 million tonnes at 5.33 grams per ton gold.
The acquisition of the Beauchastel property, supplementing Falco Pacific’s land holdings in the district, gives the Company control of over 3 linear kilometers of the Quesabe fault structure to explore. In addition, Falco Pacific continues to compile data on the former Quesabe Mine in order to assess the previously outlined zone and identify potential targets as the deposit is open at depth and laterally and lies along strike with the Beauchastel property.
Recent Sample Programs- Vior
Two till sampling programs were carried out by Vior on the property in 2010 and 2012. In total 74 basal till samples were collected of which 45.9% of the samples were identified as being anomalous (containing > 5 gold grains, with a high of 1,032 grains). The results confirm the presence of a highly prospective gold bearing target stretching over 3 kilometers southwest from Falco Pacific’s Quesabe Mine.
Till sampling results from Beauchastel compare favourably with those collected down ice from several producing gold deposits as indicated in Table 1 below.
|Table 1.Till Gold Grain Counts of Selective Gold Deposits|
|Pamour Mine, Ontario||880||McClenaghan et al., 2001|
|Matachewan Consolidated Mine, Ontario||1024||McClenaghan et al., 2001|
|Sachigo River Mine, Ontario||90||Stone et al., 2000|
|Casa Berardi, Quebec||700||McClenaghan et al., 2001|
|Con Mine, NWT||141||Kerr and Knight, 2002|
|Giant Mine, NWT||104||Kerr and Knight, 2002|
|Discovery Mine, NWT||91||Kerr and Knight, 2002|
|Beauchastel Gold Property||1032||Vior|
Falco Pacific’s President and CEO Kelly Klatik said, “The Flavrian District prospects are an example of the Company’s bench strength of strategic gold assets within the context of the larger package which includes the Horne Mine area where modeling of the Horne 5 deposit continues to progress well.”
Under the terms of the Option Agreement, Falco Pacific will on TSX-V acceptance of Option Agreement:
- pay Vior $25,000;
- issue 50,000 common shares of Falco Pacific on closing of the transaction. The shares issued to Vior will be subject to resale restrictions including standard 4-month hold provisions.
To complete the exercise of the Option, Falco Pacific will be required to:
- incur $50,000 in expenditures on the Property within 18 months of TSXV acceptance;
- pay Vior an additional $25,000 within 18 months of TSXV acceptance;
- issue in favour of Vior an additional 125,000 shares of Falco Pacific within 18 months of TSXV acceptance subject to standard hold provisions and certain resale restrictions.
Upon successful exercise of the Option Agreement Falco Pacific will grant Vior an NSR Royalty of 2% with Falco Pacific having the right to buy back up to 1% of the NSR for $1 million at any time. Falco Pacific will have a right of first refusal on the sale of the remaining 1% NSR royalty.
The transaction is subject to the approval of the TSX Venture Exchange.
Dr. Michael Byron, Vice President Exploration, is the non-independent qualified person as defined by NI 43-101 for this release and has reviewed and verified the technical information contained herein.
About Falco Pacific Resource Group
Founded in 2012 with the acquisition of the 728 square kilometre Rouyn Noranda Project in Quebec, Falco Pacific is led by a veteran exploration team and is focussed on the evaluation of precious and base metal targets in one of the world’s great mining camps.
For more information, please go to www.falcopacific.com.
The company advises that the production, tonnage and grades listed above are historical in nature and have not been verified.
On behalf of the board of directors of FALCO PACIFIC RESOURCE GROUP
Kelly Klatik, President and CEO
Neither the 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 press release.
This news release contains forward-looking statements and forward-looking information (together, “forward-looking statements”) within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include terms of the transaction, including acquisition costs, shares to be issued and approval of the TSX Venture Exchange and future plans. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include those risks set out in the Company’s public documents filed on SEDAR at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
This news release contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. Readers are cautioned that the Company has not interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar properties are not indicative of mineral deposits on the Company’s properties.
Falco Pacific Resource Group
Mr. Dean Linden