Falcon Signs Letter of Intent FOR the Poposa GOLD-Silver- Copper Property, Argentina; Announces Private Placement
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NEWS RELEASE
FALCON SIGNS LETTER OF INTENT FOR THE POPOSA GOLD-SILVER-
COPPER PROPERTY, ARGENTINA; ANNOUNCES PRIVATE PLACEMENT
Vancouver, B.C., March 20, 2017. FALCON GOLD CORP. (FG: TSX -V) (“Falcon” or the “Company”) is
pleased to announce it has signed a letter of intent (“LOI”) to acquire an initial 85% interest in the Poposa
Property comprised of 13 mineral concessions (approx. 9,200 hectares) located in San Juan Province,
Argentina.
The acquisition provides strategic benefits to Falcon including:
• A significant (drill ready) exploration and development property within the world class El Indio
gold district of Argentina, an investor friendly mining jurisdiction.
• Very reasonable acquisition/purchase price for a regional scale project in a prolific mining camp
that hosts several large, long -lived mines including Barrick’s Veladero mine, and Del Carmen
project, Yamana’s Gualcamayo mine and McEwen Mining’s Los Azules project.
• Substantial exploration data base developed over the years upon which future programs can be
implemented.
• Multiple, well-defined targets as may be associated with large, classic porphyry deposits, ranging
from high -grade lode gold occurrences to large tonnage low -grade copper and gold
mineralization.
• Potential upside to be realized through further exploration drilling for resource definition.
The Poposa Property
The Property is located in western San Juan province in west-central Argentina about 50 kilometres (“km”)
west-southwest of the town of Iglesia. The city of San Juan is 160 km to the southeast. The Property’s 13
mineral concessions encompass approximately 9,200 hectares (“ha”) and include two easements for the
camp buildings.
The main rock units in the reg ion consist of Carboniferous -age quartzite, sandstone and minor shale of
the Agua Negra Formation. The sedimentary units are intruded by granitic stocks that are covered by
dacite-rhyolite volcanic rocks of the Choiyoi Group which are of Permian-Triassic age; and subvolcanic and
volcanic rocks including tuffs, andesite, and dacite lava flows and andesite -dacite-trachyte porphyry
intrusions of Late Miocene age.
The Property’s gold and copper mineralization was first discovered and staked by the Vendor in 1989.
Table One summarizes the reported history of exploration conducted on the Property. Mineralization
recognized within the Property consists of several extensive systems of veins and vein stockworks
enveloped by moderate to strong argillic alteration. Alteration is exposed over an area of about two by
FALCON GOLD CORP.
520- 470 Granville St.
Vancouver, BC V6C1V5
+1 604-683-1991
+1 604 683-8544
www.falcongold.ca
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four km, including several strongly argillically altered centers up to 1 km in diameter. The five main target
areas within the Property are known as the La Poposa (northern Sector), Filo Amarillo (northe astern
sector), Quebrada Poposa (Central Sector), Cerro Morro (central east Sector) and the Esperanza
(southernmost Sector). Historic assessment has consisted of prospecting, mapping, trenching and drilling.
Table One: Summary of previous work on the Poposa Property
From To Operator Program Components Significant Results
1989 1990 Vendor Acquired initial concessions Discovered areas of alteration
1992 1996 • Surface chip sampling program
• T renching program
• 1,100m of diamond drilling in 20 holes
1996 1997 Western Mines Co. Inc. Drilled 4,571m in 37 Reverse Circulation
holes
Several new gold and copper anomalies
determined
2005 2008 Marifil Mines Ltd. & ATW
Venture Corp.
2,628 m of diamond drilling in 8 diamond
drill holes
Trench chip sample returned - 6.0m @ 149.65 g/t
Au and 16.0 g/t Ag
Trench chip sample returned - 3m @ 7.34 g/t Au
and 156 g/t Ag (see Marifil news - Dec. 12, 2006)
2011 2012 • New geological and alteration maps,
• resampled trenches,
• 7 lines of Induced Polarization, and
• 1,108m in 5 diamond drill holes
(plus 2 holes abandonned.)
Years
Argentina Gold Corp. - Trench 12A chip sample ran 7.26 g/t Au over 9.4
metres
- DDH-2 intercepted 4.43 m grading 3.9 g/t Au
- Filo Amarillo vein surface sample graded
372 g/t Au over 2 m width
Terreno Resources Inc. - DDH P0-03 averaged 0.79 g/t Au and 0.12% Cu
over 25 m.
Option Terms
Falcon has agreed to make annual payments over a six year period to the project owner totaling
US$2,600,000 in cash (first year payments total US$130,000) and to issue a total of 1.5 million Falcon
common shares. In addition, Falcon will make exploration expenditures on the Property according to
approved budgets as recommended in an independently prepared report. The transaction is subject to
completion of due diligence and TSX Venture Exchange approval.
Private Placement
Falcon is pleased to announce it has arranged a non-brokered private placement for up to $600,000 priced
at $.05/Unit. Each Unit consists of one common share and one 2 -year common share purchase warrant
exercisable at $.08. Closing will be subject to TSX Venture Exchange approval and any shares issued will
be subject to a four-month hold period.
Proceeds from this financing shall be used by the Company as working capital for the Poposa project due
diligence and for general corporate purposes.
Qualified Person
The technical content of this news release has been reviewed and approved by Mr. Bruce Goad, P. Geo.,
who is a Qualified Person as defined by National Instrument 43 -101, Standards of Disclosure for Mineral
Projects.
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About Falcon Gold Corp.
Falcon is a Canadian mineral exploration company focused on generating, acquiring, and exploring
opportunities in the Americas. For information on the Company, please visit our website:
www.falcongold.ca.
CONTACT INFORMATION
Falcon Gold Corp.
David Tafel
Chairman
Stephen Wilkinson
CEO & Director
Telephone: 604-683-1991
Email: [email protected]
Cautionary Language and Forward-Looking Statements
This news release may contain forward looking statements including but not limited to comments
regarding the timing and content of upcoming work programs, geological interpretations, receipt of
property titles, etc. Forward looking statements address futur e events and conditions and therefore,
involve inherent risks and uncertainties. Actual results may differ materially from those currently
anticipated in such statements.
Neither 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 release.