Falcon Gold finds visible gold at Central Canada project

Falcon Gold (TSX-V: FG) has reported positive drill results from a second hole at its flagship Central Canada gold project, located 22 km east of Atikokan and 160 km west of Thunder Bay in north-western Ontario.

Drill hole 20-02 intersected 1 metre grading 23.11 grams gold per tonne starting from 35 metres downhole. Assays from the first hole, 20-01, returned high-grade gold mineralization over 3 metres grading 10.17 grams gold per tonne, including 6 metres grading 1.39 grams gold and 1 metre grading 18.6 grams gold, from 67 metres downhole.

"These commanding results from the Central Canada mine's main trend have given our Company another boost in confidence," Karim Rayani, the company's CEO, said in a press release. "The mine's historical gold zone was reported to be a narrow, high-grade quartz vein, and our first two drill holes support the historical reports."

Inspecting core samples from one of Falcon Gold's properties. Credit: Falcon Gold.

Hole 20-02 was the first hole to report visible gold mineralization within a mineralized intersection.

Both holes were part of a 7-hole 1,055-metre summer drilling campaign completed last month. Each of the holes, the company said, successfully intersected a historical mine trend with mineralized quartz veins intersected to a depth of 175 metres, with hole 20-02 confirming a high-grade mine trend for approximately 75 metres of strike trending west-southwest.

The deepest hole, 20-07, discovered a previously unidentified mineralized fault zone with extensive quartz veining from 142 metres to 177 metres below surface, the company reported.

"Our geological team believes we are seeing definite confirmation that the zones are present, and, very importantly, the zones are contained within gold mineralized halos that may be several meters thick," Rayani said.

"In my opinion, these high-grade veins and attendant gold-mineralized halos give us a previously unidentified exploration target with much greater economic potential," he added.

The Central Canada project is 20 km southeast of Agnico Eagle's (TSX: AEM; NYSE: AEM) Hammond Reef gold deposit, which has estimated measured and indicated resources of 208 million tonnes grading 0.67 gram gold per tonne for 4.5 million contained oz. gold.

According to Falcon, exploration at the project has been conducted for almost 120 years.

Between 1901 and 1907, the construction of a 12 metre-deep mine shaft was undertaken. Then from 1930 to 1934, Central Canada Mines conducted development work, which included 1,829 metres of drilling and a vertical shaft to a depth of 45 metres with about 42 metres of crosscuts and drifts on the 100 metres level, and also installed a 68-tonnes per day gold mill.

In 1934, the company outlined mineralization of approximately 230,000 oz. gold, with an average grade of 9.8 grams gold per tonne, Falcon reported.

Due to a lack of funds, no further work took place at the project until 1965, when Anjamin Mines conducted diamond drilling, which returned a 1-metre section grading 37 grams gold per tonne from hole S2. An assay from hole S3 reported over 2 metres grading 44 grams gold.

In 1985, Interquest Resources drilled 13 holes totalling 1,840 metres that identified a 1-metre intersection grading 30 grams gold per tonne. And from 2010 to 2012, TerraX Minerals (TSXV: TXR; US-OTC: TRXXF) carried outline cutting, geological surveys, and 363 metres of drilling.

Falcon also holds three other projects, the Camping Lake property in Red Lake in Ontario, a 49% interest in the Burton Gold property with Iamgold (TSX: IMG; NYSE: IAG) near Sudbury, and the Spitfire and Sunny Boy Gold Claims near Merritt, British Columbia.

At press time in Toronto, Falcon was trading at 19.5 ? per share within a 52-week trading range of 3 ? and 25 ?. The company has 60 million common shares outstanding for an $11.8-million market capitalization.