Falcon Forms Latamark Resources Corp., to Create Latin American Focused Issuer
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NEWS RELEASE FG: TSX-V
3FA: GR
FGLDF: OTCQB
FALCON FORMS LATAMARK RESOURCES CORP.,
TO CREATE LATIN AMERICAN FOCUSED ISSUER
October 7, 2021. Vancouver, B.C. – Falcon Gold Corp. (TSX-V: FG), (Frankfurt: 3FA: GR),
FGLDF: OTCQB); (“Falcon Gold” or the “ Company”) is pleased to announce the Company
has formed Latamark Resources Corp. a wholly owned subsidiary of Falcon Gold. The Company
is currently evaluating a number of assets in Latin America to grow our exposure to opportunities
outside of North America. The Company intends to spinout its Argentine gold asset located in the
renowned Sierra de Las Minas district of southern La Rioja province in San Juan. The district is
reported to host several past-producing gold, silver, and mines.
Karim Rayani, Chief Executive Officer commented, “This is a very exciting time for Falcon, we
continue to search out opportunities both domestic and now international. Falcon is perfectly
positioned as we continue to advance our Central Canada project, the Company is eagerly
awaiting assays from our 2nd phase of exploration at the high-grade Spitfire Sunny Boy combined
with announcements coming from our Newfoundland expansion plans. Falcon continues to add
value for stakeholders - we look forward to the coming weeks”.
The Company is in initial stages of preparing the necessary reporting requirements needed for
shareholder approval. Falcon can make no assurances that a spinout will take place as it’s subject
to several conditions that include board approval, satisfying the TSX Venture requirements, legal
and tax ramifications, determining the final details of the transaction , rec eipt of all regulatory
approval, the availability of financing for the new subsi diary, and the over all market conditions.
The Company will be providing further details if, and when available.
The Esperanza Gold Copper Silver property comprises seven mineral concessions covering an
aggregate area of 11,072 hectares. 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 zones. Other sites of historical small-scale mining
within the Esperanza property 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 meters of diamond drilling in the Callanas area
during the 1990’s. Two of the holes returned encouraging intercepts assaying one meter at 9.11
grams per tonne (g/t) gold, 28.59 g/t silver and 0.42m at 24.3 g/t Au, 61.10 g/t Ag. More
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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recently, Esperanza Resources had reported that the Callanas west zone has been mapped along a
northwest-southeast strike for approximately 4,000 meters.
In 2018, the Company completed a limited sampling program as part of its initial due diligence.
The Callanas east trenches results included a one-meter sample that returned 5,619 parts per
billion (ppb) gold. A 2.5-meter continuous chip sample from the north end of the Callanas west
exposure showed 5,905 ppb Au, 20.6 parts per million (ppm) Ag and 0.29% Cu.
Falcon’s 2018 due diligence mapping and sampling program as reported previously, was highly
successful and covered several gold-bearing zones. The geological team also mapped the trails
and back roads that gave access to multiple showings and historical mine sites.
Approximately 4km east of the Callanas area is another very prominent NW-SE lineament
containing gold bearing quartz veins, not previously noted in historical reports. This structure
parallels the strike of the Callanas zones and may extend to the southeast. A 30cm chip sample
assayed 15.63 g/t Gold and a grab sample of a quartz vein float returned 28.43 g/t Gold.
• From Callana III vein of 27.03 g/t Au across 50cm; and
• From the Callana IV vein across a 50cm 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.
On Jan. 7, 2019, Falcon completed its first exploration work on the Esperanza property and
reported on its findings. High-grade gold mineralization is reported to be localized along
northwest-southeast striking linear structures. The Callanas area contains several known veins
and Falcon’s sampling included a 50cm wide chip sample with visible gold that assayed 44.90
grams per tonne (“g/t”) Gold; 123.2 g/t Silver; 0.73% Copper and another 50cm chip sample
that assayed 26.07 g/t Gold; 424 g/t Silver; 1.23% Copper.
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Agreement
On February 9, 2021, the company was able to reinstate the property option for a reduction from
the original agreement. The original terms were calling for escalating annual payments over a
6-year term totaling $ 500,000 USD and the issuance of 4 million common shares with property
expenditures of 1.74 million USD Falcon was successful in reworking the terms to share
payments of 500,000 common shares plus 500,000 warrants to be paid to the vendors and by
spending $350,000 USD in exploration expenditures to earn an 80% interest in the project. Upon
completion of payments and expenditures, Falcon will hold an 80% interest and the vendors
would retain 20% ownership in the property. Following which, for a 30-month period, Falcon
reserves the right to purchase the vendors' 20% remaining interest (For Falcon's total ownership
of 100% of the property) for a further payment of two million Falcon common shares and a one
time $1.5 million USD payment, which includes a 1% Net Smelter Return (“NSR”) buy back
leaving the vendors with a 1% NSR.
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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.
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 southeast of Agnico Eagle’s H ammond Reef Gold Deposit which has
currently estimated 3.32 million ounces of gold (123.5 million tonnes grading 0.84 g/t gold) mineral
reserves, and 2.3 million ounces of measured and indicated mineral resources (133.4 million tonnes
grading 0.54 g/t gold). The Hammond Reef gold property lies on the Hammond shear zone, which
is a northeast-trending 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 northeast-trending splay of the QFZ.
The Company holds 7 additional projects. The Springpole West Property in the world -renowned
Red Lake mining camp; a 49% interest in the Burton Gold property with Iamgold near Sudbury
Ontario; and in B.C., the Spitfire -Sunny Boy, Gaspard Gold claims; and most recently the Great
Burnt, Hope Brook, and Baie Verte acquisitions adjacent to First Mining, Sokoman-Benton’s JV,
and Marvel Discovery in Central Newfoundland.
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 programs, 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 thos e
currently anticipated in such 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 future
events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from thos e
currently anticipated in such statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is d efined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.