SUDBURY, ONTARIO -- (Marketwire) -- 03/27/13 -- Falcon Gold Corp. (TSX VENTURE: FG) ("Falcon" or the "Company") announces that Trelawney Mining and Exploration ("Trelawney"), wholly owned by IAMGOLD Corporation ("IAMGOLD"), have completed $600,000 in exploration expenditures (Phase 1) and having completed all other obligations pursuant to the option agreement have earned a 51% interest in the Burton Gold Property ("Property"). Under the terms of the earn-in option agreement between Trelawney and Falcon, IAMGOLD may earn an additional 24% interest in the Property by incurring an additional $600,000 in exploration expenditures on the Property on or before February 16, 2014 (Phase 2).
About The Burton Property
The Burton Gold Property is located in the Swayze Greenstone Belt, Northeastern Ontario, approximately 150 kilometres (km) south of Timmins and 180 km north of Sudbury. The Property is well-positioned in a very actively explored district. The Property is approximately 38 kms northwest of the IAMGOLD Cote Gold Deposit which has an indicated resource of 131 million tonnes at an average grade of 0.84 grams per tonne ("g/t") (3.56 million ounces gold) and an inferred resource of 165 million tonnes at an average grade of 0.88 g/t (4.66 million ounces gold)(1). The Property is also located approximately 10 km northwest of the past producing Jerome Gold Mine which produced 56,878 ounces gold from 1941 to 1943 (303,966 tonnes @ 6.72g/t Au)(2).
Historical diamond drill intercepts at the Property include 9.34 g/t Au over an intersection length of 7.75 metres ("m") at the Shaft Zone and 12.47 g/t Au over an intersection length of 3.13 m at the East Zone. The Shaft Zone and the East Zone are interpreted to be hosted by the same stratigraphic and structural zone and are separated by a distance of approximately 450 metres. 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 September 12/2011).
Phase 1 Exploration Results
Under the terms of the option agreement, Falcon was the operator of the Phase 1 exploration program. Work completed during Phase 1 on the Property included:
-- 55.2 km of grid were cut including 100 m spaced grid lines, base line, and tie lines-- IP survey completed on the 100 m spaced grid lines-- A total of 985 soil samples collected and analyzed-- Review of IP data by a Consulting Geophysicist (IP Specialist)-- Compilation of exploration data integrating historical exploration and geological data
Based on the Phase 1 exploration work and data compilation, drill targets were prioritized and a total of 1,528 metres were completed in 13 diamond drill holes. The objective of the drill program was to test property wide targets leaving the Shaft Zone - East Zone target area for follow-up exploration in future programs. The diamond drilling intercepted numerous disseminated sulphide horizons, structures interpreted from the compilation of exploration data, and contained locally anomalous gold concentrations. However, the diamond drilling did not include intercepts of potentially economic gold mineralization. The Phase 2 exploration program is being planned and subject to review by IAMGOLD should include follow-up on some of the anomalous gold intercepts in Phase 1 diamond drilling and focus on the Shaft Zone - East Zone target area.