Pinks Falcon Renegotiates Its Agreement FOR Esperanza GOLD/Silver/Copper Project IN LA Rioja, Argentina
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NEWS RELEASE FG: TSX-V
3FA: GR
FGLDF: OTC PINKS
FALCON RENEGOTIATES ITS AGREEMENT FOR ESPERANZA
GOLD/SILVER/COPPER PROJECT IN LA RIOJA, ARGENTINA
Vancouver, B.C., February 9, 2021. FALCON GOLD CORP. (FG: TSX-V), (3FA: GR), (FGLDF: OTC PINKS) ;
("Falcon" or the “Company”) is pleased to announce it has signed a renegotiated agreement for the right
to acquire up to a 100% interest in the ERSA mineral concessions located in La Rioja Province, Argentina.
The concessions are held by Esperanza Resourc es S.A. and Mr. Rojnica Ivo ( the “Vendors”) . The
Agreement is subject to TSX Venture Exchange approval.
The Property
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 g old 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
FALCON GOLD CORP.
110 – 175 Victory Ship Way
North Vancouver, BC, V7L 0B2
VANCOUVER TEL: (604) 670-0019
TORONTO TEL: (416) 477-1220
www.falcongold.ca
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Mr. Karim Rayani Chief Executive Officer commented, “We are thrilled to be able to return to Argentina
and work with the professionals at Esperanza Resources. The Company’s team in Argentina is headed by
Mr. Juan Carlos Navas, a long -time associate and seasoned mining executive. Our previous work on the
ERSA concessions has given Falcon the ability to jump into its exploration and development work with its
advanced knowledge of the locations and structural controls on significant gold, silver and copper zones.”
Table 1: Summary of the sampling and analyses results for the 2018 exploration program on
concessions, ERSA VIII, IX & X. Note the high -grade gold beyond the analytical detection limit
of 10,000 ppb Au were assayed for better upper grade results.
The New Option Agreement
Under the renegotiated Agreement to earn its initial 80% interest, the Company has agreed to make
payments to the Vendors over a four-year option period totalling 500,000 Falcon common shares and
500,000 share purchase warrants. Each Warrant will entitle the Vendor to purchase one Falcon common
share for a period of 12 months for a purchase price set on each date of issue at 125% of the closing price
for Falcon shares traded on the Toronto Venture Exchange. During the four-year option period, Falcon is
to make minimum expenditures on the Property amounting to US$350,000.
Upon completion of payments and expenditures, Falcon will own 80% and the Vendors will retain 20%
ownership in the Property. Following which and for a period of 30 months, Falcon will have the right to
purchase the Vendors’ 20% interest (for Falcon's total ownership of 100% of the Property) for a further
payment of 2 million Falcon shares and a US $1.5 payment which includes a 1 % NSR Buy Back with the
vendors retaining 1%.
ESPERANZA PROJECT Au Au Ag Cu Pb V Zn
ERSA VIII - IX - X ppb g/t ppm ppm ppm ppm ppm
Analytical Method FAA313(1) FAG303(2) ICP40B(3) ICP40B ICP40B ICP40B ICP40B Description
Lower Detection Limit 5 0.50 0.20 0.50 2 2 0.50 Mineralized Sample Sample
Upper Detection Limit 10,000 100 10,000 10,000 10,000 10,000 Zone Type Width (cm)
Sample Number
40031 28 -- 2.70 655.20 92 18 51.20 ERSA VIII(4) FLOAT N/A
40032 >10000 15.63 8.20 >10000 3,462 604 136.50 ERSA VIII CHIP ROCK 30
40033 >10000 28.43 92.00 596.10 370 85 197.20 ERSA VIII FLOAT N/A
40034 392 -- 1.70 67.40 39 42 52.40 ERSA VIII CHIP ROCK 30
40035 272 -- 0.80 61.60 18 26 20.50 ERSA VIII CHIP ROCK 30
40036 6,923 -- 55.40 3,250.40 1,477 104 500.30 ERSA VIII FLOAT N/A
40037 81 -- 0.80 69.00 46 16 16.60 ERSA VIII CHIP ROCK 40
40038 30 -- 0.20 21.30 18 11 11.00 ERSA VIII CHIP ROCK 300
40039 58 -- <0.2 10.00 28 206 46.00 ERSA VIII CHIP ROCK 40
40040 >10000 27.03 >100 >10000 >10000 105 >10000 Callana III CHIP ROCK 50
40041 4,362 -- 31.90 7,849.00 >10000 2,423 854.00 Callana VI CHIP ROCK 40
40042 >10000 18.45 >100 9,122.40 >10000 679 225.30 Callana VI CHIP ROCK 40
40043 121 -- 4.40 67.90 2,205 113 43.10 Callana VII CHIP ROCK 30
40044 >10000 22.16 11.90 597.50 9,194 315 81.70 Callana VII CHIP ROCK 40
40045 129 -- 1.30 55.80 458 61 33.80 Callana VII CHIP ROCK 20
40046 31 -- 0.50 31.90 488 73 84.00 Callana VII CHIP ROCK 25
40047 1,037 -- >100 >10000 >10000 15 48.90 Callanas CHIP ROCK 10
40048 (VG)(5) >10000 28.23 >100 >10000 >10000 329 >10000 Callana V CHIP ROCK 80
40049 1,438 -- 8.80 491.80 9,741 96 1,432.20 Callana V CHIP ROCK 30
40050 (VG) >10000 45.71 >100 7,869.60 >10000 724 2,527.80 Callana IV CHIP ROCK 50
40051 (VG) 662 -- 78.90 8,397.50 609 243 148.50 San Isidro Norte CHIP ROCK 40
40052 (VG) >10000 23.13 4.00 8,200.40 292 120 149.20 San Isidro Sur CHIP ROCK 60
40053 (VG) >10000 24.75 19.90 6,182.90 363 95 168.20 San Isidro Sur CHIP ROCK 100
40054 159 -- 1.00 118.60 345 9 118.60 San Isidro Sur CHIP ROCK 20
(1) FAA: Flame Atomic Absorption
(2) FAG: Fire Assay Gravimetric
(3) ICP40B - 32 Elements by four-acid digestion / ICP-AES
(4) ERSA VIII mineralized zone may be the historical Callanas Este gold area
(5) (VG) - visible gold identified at sample site
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Table One: List of the ESRA mineral concessions in La Rioja province, Argentina
Qualified Person
Dr. Daniel Rubiolo, P. Geo., who is a Qualified Person as defined by National Instrument 43-101, Standards
of Disclosure for Mineral Projects has reviewed and approved the technical content of this news release.
About Falcon Gold Corp., the Central Canada Gold Mine Project, and Jack Lake Trend
Falcon is a Canadian mineral exploration company focused on generating, acquiring, and exploring
opportunities in the Americas. Falcon’s flagship project, the Central Canada Gold Mine, is approximately
20 km south east of Agnico Eagle’s Hammond Reef Gold Deposit which has Measured & Indicated
estimated resources of 208 million tonnes containing 4.5 million ounces of gold. The Hammond Reef gold
property lies on the Hammond fault which is a splay off of the Quetico Fault Zone (“QFZ”) and may be the
control for the gold deposit. The Central Gold property lies on a similar major splay of the QFZ.
*History of Central Canada gold mine includes;
1901 to 1907 - Shaft constructed to a depth of 12m and 27 oz of gold from 18 tons using a stamp mill.
1930 to 1934 – Central Canada Mines Ltd. installed a 75 ton per day gold mill. Development work included
1,829 m of drilling and a vertical shaft to a depth of 45 m with about 42 m of crosscuts and drifts on the
100-foot level. In December, 1934 the mine had reported ly outlined approximately 230,000 ounces of
gold with an average grade of 9.9 g/t Au.
1935 – With the on-going financial crisis of the Great Depression, the Central Canada Mines was unable
to fund operations and the mine ceased operations.
1965 – Anjamin Mines completed diamond drilling and in hole S2 returned a 2 ft section of 37.0 g/t Au
and hole S3 assayed 44.0 g/t Au across 7 ft.
1985 – Interquest Resources Corp. drilled 13 diamond holes totaling 1,840m in which a 3.8 ft intersection
showed 30.0 g/t Au.
2010 to 2012 – TerraX Minerals Inc. conducted programs that included line cutting, geological surveys and
363 m of drilling.
*Historical results reported for the Central Canada Gold Mine project for the period from 1901 to 2012 are
recognized as historical in nature only. Previously reported results are considered encouraging and
demonstrate the need for additional follow-up gold exploration programs on the property.
July 2020 to December 2020 – Falcon Gold Corp. completed its inaugural 17 -hole pro gram totaling
2,942.5m of core. In addition, the Company acquired by staking an additional 7,477 ha of mineral claims
consisting of 369 units immediately south and northwest of Agnico Eagle Mines Ltd.’s Hammond Reef
property.
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The Company also holds 4 addi tional projects. The Camping Lake Gold property in the world -renowned
Red Lake mining camp; a 49% interest in the Burton Gold property with Iamgold near Sudbury Ontario;
the Spitfire-Sunny Boy Gold Claims near Merritt, B.C.; and most recently, the Springp ole West Property
near Red Lake, Ontario.
CONTACT INFORMATION:
Falcon Gold Corp.
“Karim Rayani”
Karim Rayani
Chief Executive Officer, Director
Telephone: (604) 716-0551
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 p rograms, geological interpretations, receipt of
property titles, etc. Forward looking statements address future 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.