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Falco Pacific Updates Results of Historic Resource Evaluation in Horne Mine Complex Area, Rouyn-Noranda Project

Feb 13 2013 12:00AM

Marketwire

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VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/13/13 -- Falco Pacific Resource Group (TSX VENTURE: FPC) ("Falco" or the "Company") is pleased to provide the following update regarding its on-going review and compilation of exploration targets on its wholly owned Rouyn-Noranda Project in Quebec. The initial focus for the Company has been on evaluating a number of historic and remnant resources in the area surrounding the Horne and several other nearby formerly producing mines - the Horne Mine Complex.

Principal amongst the targets under review is the Horne #5 Zone - a large, vertically extensive polymetallic body containing a historic resource(i), determined by Noranda Inc. in 1976 prior to the implementation of National Instrument 43-101, of 167.83 million tonnes grading 1.25 g/t gold, 17.14 g/t silver, 0.10% copper and 0.57% zinc (see Table 1 and related disclosures concerning historic resource estimates below).

Table 1: Historic Resource Zone #5

---------------------------------------------------------------------------- Source Data Historic Resource Estimates(i)---------------------------------------------------------------------------- Metric Tons Gold Silver Copper Zinc---------------------------------------- Reference Source Levels Mt g/t g/t Ag % %---------------------------------------------------------------------------- Published Noranda 19th toHorne #5 Eggert Internal 65thZone 1976 Rpt levels 167.83 1.25 17.14 0.10% 0.57%============================================================================Subsection of Horne # 5 Zone---------------------------------------------------------------------------- Published Subsection Noranda 19th toUpper Price Internal 43rdReserve 1980 Rpt levels 75.56 1.30 17.14 0.15% 0.83%---------------------------------------------------------------------------- Published Subsection Noranda 19th toHorne #5 Bancroft Internal 57thGold 1980 Rpt levels 1.79 6.14 16.80 0.49% 0.37%-------------------------------------------------------------------------------------------------------------------------------------------------------- Source Data Contained Metal---------------------------------------------------------------------------- Gold Silver Copper Zinc---------------------------------------- Reference Source Levels Moz Moz Mlbs Mlbs---------------------------------------------------------------------------- Published Noranda 19th toHorne #5 Eggert Internal 65thZone 1976 Rpt levels 6.75 92.50 356 2109============================================================================Subsection of Horne # 5 Zone---------------------------------------------------------------------------- Published Subsection Noranda 19th toUpper Price Internal 43rdReserve 1980 Rpt levels 3.17 41.65 250 1382---------------------------------------------------------------------------- Published Subsection Noranda 19th toHorne #5 Bancroft Internal 57thGold 1980 Rpt levels 0.35 0.96 19.30 14.37----------------------------------------------------------------------------



(i) All resources estimates identified in this news release with an (i) are historic in nature and pre-date the implementation of NI 43-101. The historic resource information has been obtained from internal Noranda reports which were collectively published in 1980 and which are publically available. These estimates are based on extensive underground exploration drilling and sampling, are repeated in several documents, and are believed to be highly reliable between the 19th and 49th levels. Data for resources below the 49th level are also considered to be reliable but are based on less extensive underground development and drilling. The majority of the source data is based on 10 foot (3.05 metre) assay intervals and "in-house" assaying by Noranda Inc.

The internal Noranda reports, while stating certain historic estimates as "reserves" do not provide the necessary economic parameters to make them comparable to NI 43-101 reserves. Eggert's 1976 estimate, prepared on closing of the Horne Mine complex, is the most recent resource estimate for the Horne #5 Zone and contains no specific references to cut-off grades, capping factors and relies on global resource silver grades calculated by Bancroft in 1976. The 1980 Price and Bancroft estimates draw on the work of earlier authors and internal Noranda reports.

Price's 1980 historic reserve figure is based on 375 resource blocks measuring 250 foot x 50 foot in the upper portion of the #5 Zone between the 19th and 43rd levels. No specific capping, cut-off or economic factors are included in the authors reserve statement.

Bancroft's 1980 estimate of the remnant high-grade gold resource located between the 19th and 57th levels employs a cut-off grade of 5.14 g/t, a capping factor of 17.14 g/t gold and a minimum assay interval of 10 feet (3.05 metres).

Investors are advised that no assessment of the potential for profitable extraction of the above tonnages has been made. A qualified person has not done sufficient work to classify any of the historical estimates as current mineral resources or mineral reserves as defined by NI 43-101. The Company is not treating the historical estimates as current mineral resources or reserves as defined by NI 43-101. Further compilation of the historic geological and drilling data, resource modeling and confirmation drilling will be necessary to convert the historic estimates outlined above to NI 43-101 resources/reserves.

Horne #5 Zone - Details

The Horne #5 Zone was discovered in the late 1930s and sits in the hanging wall to the former producing Horne copper-gold deposit. The Horne deposit was mined from the late 1920s to 1976 producing 54 Mt @ 6.1 g/t gold, 13.0 g/t silver and 2.2% copper. The Horne deposit served as the fundamental building block for Canadian resource giant Noranda Inc. (now owned by Xstrata PLC). Between the early 1940s and 1960s Noranda conducted a thorough evaluation of the Horne #5 Zone, to a depth of over 2,100 metres. This included the development of 5 vertical shafts and 18 horizontal working levels (see Figure 1). The Zone remains open beneath the deepest levels tested.

"The extensive underground infrastructure at Horne #5 will be of tremendous benefit in the evaluation and potential future development of this large gold-silver system," said Falco Pacific's President and CEO, Kelly Klatik, in commenting on the historic resource inventory. "Today's metal prices provide a much different economic scenario for the development of gold and silver resources than existed between the 1940s and 1960s when the Horne #5 body was being actively evaluated."

The #5 Zone extends for up to 1,000 metres along strike, varies between 30 and 110 metres in thickness and is thus potentially amenable to underground bulk mining. A small tonnage of high-grade copper-gold ore was previously mined from the #5 Zone and processed in the mill and currently active smelter directly adjoining the Horne mine site in Rouyn-Noranda, Quebec (Figure 2).

"The historic resource estimates for the Horne #5 Zone indicate that it may represent one of the largest, partially developed, gold-silver assets in Canada," said Darin Wagner, Chairman of Falco Pacific Resource Group. "Geologically the Horne Mine Complex, which hosts the former producing Horne, Quemont, Chadbourne and Remnor mines, is one of the most metal rich segments of the prolific Abitibi greenstone belt and it provides Falco Pacific with an exceptional lead asset."

High-Grade Gold Sub-Zone

A high-grade, structural controlled gold-rich sub-zone is present throughout the vertical extent of the #5 Zone. Diamond drilling conducted by Noranda from the deepest working levels extends this high-grade gold zone for over 400 feet (130 metres) beyond the current workings and remains open below (Figure 3). Results from intercepts through the high-grade gold sub-zone from the 57th and 65th mine levels, as reported by Bancroft (1980), are tabulated below (Table 2).

Table 2 - High-grade Gold Sub-Zone Intercepts - 57th and 65th Levels

----------------------------------------------------------------------------Drill Hole From To Gold Silver Copper Zinc No. feet feet Feet Metres g/t g/t % %--------------------------------------------------------------------------------------------------------------------------------------------------------57-9064 580 600 20 6.09 8.23 105.93 0.11 1.24 700 740 40 12.19 15.08 198.48 0.18 1.67----------------------------------------------------------------------------65-9063 60 90 30 9.14 3.77 78.84 0.36 0.15 100 110 10 3.05 13.03 41.28 0.56 0.18----------------------------------------------------------------------------65-9057 170 270 100 30.48 6.03 102.50 0.73 0.15----------------------------------------------------------------------------65-9262 200 240 40 12.19 5.14 45.59 0.20 0.77 240 300 60 18.29 4.90 66.16 0.18 0.58 350 440 90 27.43 7.20 29.80 0.20 0.57------------------------------------------------------------------------------ All reported intercepts are drill intervals as insufficient data has been collected to determine true thicknesses at this time. All assay results are based on standard 10 foot (3.05 metre) assay intervals utilized by Noranda and reported by Bancroft in 1980.



In addition to the Horne Mine and the #5 Zone, the Horne Mine Complex incorporates a number of other former producing gold/polymetallic mines and advanced prospects. These include the Quemont (historic production of 14Mt @ 5.38 g/t gold, 30.90 g/t silver, 1.31% copper and 2.43% zinc), Remnor (600,000 t @ 5.8 g/t gold) and Chadbourne (1.7 Mt @ 3.24 g/t gold) deposits and the Horne West gold-zinc zone. All of these assets occur within a 4.0 x 1.5 kilometre area centered on the Horne #5 Zone. Extensive data archives, including information on these and 9 other former producing mines in the project area, are currently under review and evaluation by the Company. Additional information on selected targets will be provided as the compilations are completed.

Dr. Michael Byron, Vice President Exploration, (P.Geo.) is the qualified person for this release as defined by NI 43-101 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 focused on the rapid evaluation and testing of precious and base metal targets in one of the world's great mining camps. For more information, please go to www.falcopacific.com.

On behalf of the board of directors of FALCO PACIFIC RESOURCE GROUP

Kelly Klatik, President and CEO

This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and United States securities laws. All statements, other than statements of historical fact, included herein, including statements regarding the completion of any proposed activities, anticipated content, commencement, duration and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the timing of the receipt of assay results and business and financing plans and trends, are forward-looking statements. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions or are those which, by their nature, refer to future events. Although the Company believes that such statements are reasonable, there can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future performance, and that actual results may differ materially from those in forward-looking statements. Important factors that could cause actual events and results to differ materially from the Company's expectations include those related to inaccuracy of historic information/results, third party access agreements, weather, equipment and staff availability; performance of third parties; risks related to the exploration stage of the Company's projects; market fluctuations in prices for securities of exploration stage companies and in commodity prices; and uncertainties about the receipt of regulatory approval related to the proposed transaction, availability of additional financing; risks related to the Company's ability to identify one or more economic deposits on the properties, and variations in the nature, quality and quantity of any mineral deposits that may be located on the properties; risks related to the Company's ability to obtain any necessary permits, consents or authorizations required for its activities on the properties; and risks related to the Company's ability to produce minerals from the properties successfully or profitably. Trading in the securities of the Company should be considered highly speculative. All of the Company's public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the latest technical reports filed with respect to the Company's mineral properties.

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 no 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.

This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.

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.



Contacts:
Falco Pacific Resource Group
Mr. Dean Linden
Business Development
+1.604.638.1429
info@falcopacific.com
www.falcopacific.com





Source: Marketwire


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