February 10, 2021
Vancouver, B.C., February 10, 2021. FALCON GOLD CORP. (FG: TSX-V), (3FA: GR), (FGLDF: OTC PINKS); (“Falcon” or the “Company”) is restating its announcement respecting the new agreement to acquire up to a 100% interest in the ERSA mineral concessions located in La Rioja Province, Argentina. The concessions are held by Esperanza Resources S.A. and Mr. Rojnica Ivo (the “Vendors”). The Agreement is subject to the regulatory approval.
The ERSA Property comprises seven (7) mineral concessions covering an aggregate area of 11,072 hectares (“ha”). The concessions are road accessible, located about 20 kilometres (“km”) south-southeast of the town of Chepes within the renowned Sierra de Las Minas District of southern La Rioja province. The District is reported to host several past producing gold and silver mines. The city of San Juan is about 250 km by paved highway to the west-southwest.
High-grade gold mineralization was reportedly first discovered within the District around 1865 at the Callanas occurrences followed by limited mining conducted on a gold, silver, and copper zone. Other sites of historical small-scale mining within the ERSA concessions include the El Espinillo, Callanas East and West, El Abrita, Cerro Alto, Las Lajas and San Isidro gold mineralized zones.
The Japanese agency, JICA completed 900 metres (“m”) of diamond drilling in the Callanas area during the 1990’s. Two of the holes returned encouraging intercepts assaying 1m at 9.11 grams per tonne gold (“g/t Au”), 28.59 grams per tonne silver (“g/t Ag”) and 0.42m @ 24.3 g/t Au, 61.10 g/t Ag. More recently, Esperanza Resources has reported that the Callanas West zone has been mapped along a northwest-southeast strike for approximately 4,000 m.
In 2018 the Company completed a limited sampling program as part of its initial due diligence. From the Callanas East trenches results included a 1m sample that returned 5,619 ppb gold. A 2.5m continuous chip sample from the north end of the Callanas West exposure showed 5,905 ppb Au, 20.6 ppm Ag and 0.29% Cu. Later in 2018, Falcon completed its first exploration work on the ERSA Property and on January 7, 2019 reported on its findings. Table 1 summarizes some of the surface sampling results including:
- from Callana III vein of 27.03 g/t Au across 50 cm; and
- from the Callana IV vein across a 50 cm width where visible gold was identified, that assayed 45.71 g/t Au with Ag content greater than 100 ppm and Cu analyses of 7,869.60 ppm