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FALCO COMMENCES 40,000 METRE DRILL PROGRAM Regional Exploration Seeking New Discoveries in Prolific Rouyn-Noranda Camp

Exploration Programs

For Immediate Release TSX.V - FPC

FALCO COMMENCES 40,000 METRE DRILL PROGRAM

Regional Exploration Seeking New Discoveries in Prolific Rouyn-Noranda Camp

(February 20, 2017) Montréal, Québec -Falco Resources Ltd (“Falco” or the “Company”) (TSX.V: FPC) is

pleased to announce that it is initiating exploration activities on its large 668 square kilometre l and

package in the Rouyn-Noranda Camp, which surrounds it s 100% owned Horne 5 Project . The planned

40,000 metre exploration drill campaign is part of a $10 million budget allocated to 2017 exploration

work. The exploration program will concentrate on eight different areas, including the Horne 5 project ,

with the objective of discovering new mineralization in the prolific past -producing Rouyn -Noranda

camp.

2017 REGIONAL EXPLORATION PROGRAM

Central Camp Properties

The Central Camp properties are located in the south -central portion of Falco’s considerable land

position. The properties cover approximately 90% of the historical mining camp and include several past

producing VMS base metal deposits.

Exploration work on the Central Camp properties will include approximately 15,000 to 18,000 metres of

drilling, and is aimed at updating the 3D Noranda Camp geological model with a syste matic review and

testing of existing exploration targets. Numerous drill-ready targets have been identified and will be

tested during the campaign. In addition, h istorical data compilation in and around former producing

mines will be conducted , reviewing historical resources and drill ing results to further identify new

opportunities and generate new targets.

RIMO

The RIMO propert ies are greenfield exploration project s located 25 km north west of Rouyn -Noranda.

Work will focus on the western extension of the 2015 geophysical survey and field testing of geophysical

targets with new drilling.

Lac Laynes

The Lac Laynes property is known for its VMS potential, however recent work has determined potential

low grade gold mineral ization at surface. In 2014 DDH 17931-14-02 drilled by Falco intersected a gold

bearing tectonic breccia with values of 0 .79 g/t Au over 14.0 metres, including 3.18 g/t Au over 1.2

metres. Planned work includes field validation (including rock sampling) and drilling of geophysical

targets.

Flavrian

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The Flavrian area has a historical production of 1 million ounces gold . Exploration at Flavrian will

evaluate the mineral potential of the Duprat Syenite, which shows similar geological context to the

Upper Beaver deposit in Ontario. Work includes approximately 2,000 metres of drilling.

Falco will also test for high-grade g old zones at depth and along strike , or proximal to the former

producer Quesabe gold deposit. Quesabe encompasses more than 30 gold and copper showings over a

10 km2 area. The new work will follow-up on previously drilled mineralized intersections with the aim to

upgrade mineral resources. Numerous drill-ready targets have been identified using a 3D model along

three main structures in the Quesabe area (the Quesabe Fault to the south, the Beauchemin Fault to the

east and the St -Jude Breccia system to th e North), including potential high -grade extensions of the

Quesabe main deposit.

Noralex, Routhier and Blake River Area

The Noralex property includes the Young Buck (intrusion related) showing, which bears similarities with

the Doyon and Mouska mines . His torical drilling has returned low grade gold values over wide

intercepts, including 1.93 g/t Au over 33.0 metres and 1.64 g/t Au over 24.5 metres. Work will include

drilling approximately 4,000 metres on the Young Buck showing and drilling on the south west portion of

the property. The Routhier property and Blake River properties will see new geophysics, surface

trenching and drilling of approximately 3,500 metres.

Regional Exploration Program locations

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2017 HORNE 5 EXPLORATION PROGRAM

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The Horne 5 mineralization is hosted in a felsic volcanic sequence (known as the Horne Felsic Block )

mostly composed of rhyolitic flows, rhyolite breccias and felsic lapilli to blocky tuffs. The block is

confined by the Ho rne Creek Fault to the north, the An desite Fault to the south and follows an E ast

West trend. The trend extends over 1.5km to the west of the Horne mine, where gold miner alization

has been recognized. The West Zone which occurs 1 km from the Horne 5 deposit has returned

historical results showing the good potential for this area , including: 4.6 g/t Au over 14.6 m, 4.3g/t Au

over 9.3 m and 5.5 g/t Au over 20.6m . The 2016 drill program identified a new mineralized zone 200

metres to the South West of the Horne 5 deposit, the H5-SW zone. The low gold grades defining the H5-

SW zone indicates it could be an extension of the West Zone, which confirms the continuation of the

mineralization in western direction. New exploration drilling will test the western extension between

the West Zone a nd the H5 -SW zone. Approximately 10,000 metres of drilling is planned. Three main

areas are being targeted covering a total distance of approximately 1.4km long, and between 300

metres and 1,200 metres of vertical depth.

Horne 5 Project Exploration Program

2017 Expected Drilling Metres

Property / Project Metres

Central Camp (excluding Horne 5) 16,600 m

RIMO 900 m

Lac Laynes 750 m

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Flavrian 3,600 m

Noralex and Routhier 4,650 m

Blake River 3,500 m

Horne 5 10,000 m

TOTAL 40,000 m

Qualified Person

Claude Bernier, Exploration Manager, (P.Geo. Eng.) is the qualified person for this release as defined by

National Instrument 43-101 - Standards of Disclosure for Mineral Projects and has reviewed and verified

the technical information contained herein. Mr. Bernier is an employee of Falco and is non-independent.

About Falco

Falco Resources Ltd. is one of the largest mineral claim holders in the Province of Québec, with

extensive land holdings in the Abitibi Greenstone Belt. Falco owns 68,800 hectares of land in the Rouyn-

Noranda mining camp, which represents 70% of the entire camp and includes 13 former gold and base

metal mine sites. Falco's principal property is the Horne 5 Project located in the former Horne Mine that

was operated by Noranda fro m 1927 to 1976 and produced 11.6 million ounces of gold and 2.5 billion

pounds of copper. Osisko Gold Royalties is the largest shareholder of the Corporation and currently

owns 14.2% of the outstanding shares of the Corporation.

For further information contact:

Vincent Metcalfe

Chief Financial Officer

514-905-3162

[email protected]

Bettina Filippone

Renmark Financial Communications Inc.

514-939-3989

[email protected]

Neither the TSX Venture Exchange nor its Regulation Service s 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.

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward -looking statements and forward -looking information (together, "forward -

looking statements") within the meaning of applicable securities laws and the United States Priv ate Securities

Litigation Reform Act of 1995. All statements, other than statements of historical facts, are forward -looking

statements. Generally, forward -looking statements can be identified by the use of terminology such as "plans",

"expects", "estimates", "intends", "anticipates", "believes" or variations of such words, or statements that certain

actions, events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved" and includes,

without limitation, achievement of objecti ves set for the drilling program on the Horne 5 property and the regional

exploration properties. Forward -looking statements involve risks, uncertainties and other factors that could cause

actual results, performance, prospects and opportunities to differ materially from those expressed or implied by

such forward-looking statements. Factors that could cause actual results to differ materially from these forward -

looking statements include the reliability of the historical data referenced in this press releas e and those risks set

out in Falco's public documents, including in each management discussion and analysis, filed on SEDAR at

www.sedar.com. Although Falco believes that the assumptions and factors used in preparing the forward -looking

statements are reas onable, undue reliance should not be placed on these statements, which only apply as of the

date of this news release, and no assurance can be given that such events will occur in the disclosed times frames

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or at all. Except where required by applicable la w, Falco disclaims any intention or obligation to update or revise

any forward-looking statement, whether as a result of new information, future events or otherwise.