Falcon Gold Corp (TSX-V:FG, OTC:FGLDF) told investors it has acquired 4,000 hectares of exploration claims pertinent to the Area 51 project located in the Inca Del Oro mining district in northern Chile’s Atacama Region.
The company noted that the Inca Del Oro mining district is situated along Chile's Paleocene age mineral belt, known to host multiple porphyry, skarn, and epithermal mineral deposits.
"We are very pleased to have acquired such an impressive land package in Chile, the country with the largest copper reserves in the world and one of Latin America's most stable jurisdictions,” Falcon Gold CEO Karim Rayani said in a statement.
“The Area 51 project is strategically situated in the same camp as Newmont and Freeport McMoran. This further adds to our new focus of expanding to jurisdictions outside of North America.”
Highlights of the Area 51 project include:
- 100%-owned exploration claims totaling 4,000 hectares, located approximately 80 kilometres (km) northeast of Copiapó mining city and airport. The project benefits from road access, proximity to infrastructure, and existing mine operations as well as year-round working conditions;
- Multiple mining and exploration projects in the vicinity, including the Inca de Oro porphyry copper-molybdenum-gold-silver deposit (460 million tonnes grading 0.40% copper, PanAust, 2012, S&P Global ) and the Delirio deposit (17.4 million tonnes grading 0.47% copper, 2021 Santiago Metals, S&P Global). The Area 51 exploration claim group is surrounded by other exploration and mining companies including Freeport McMoran, Newmont, Solaris Resources, and Mirasol Resources; and
- Potential for copper and gold mineralization is evidenced by the occurrence of multiple historical mine workings exhibiting mineralization, hydrothermal alteration footprints over volcanic calderas and the existence of active mining and exploration projects in the proximity of Area 51 Project.
The company noted that historical exploration data collected by Newmont and Mirasol Resources suggest that prospective targets for copper and gold mineralization within the Inca del Oro Mining District are characterized by a correlation between surficial geochemical anomalies, the intersection of northwest and northeast trending regional structures, and a magnetic-low geophysical response.
Such features are also present at Area 51 property where an aerial magnetic survey indicates a magnetic low at the center of the Area 51 property where northwest and northeast structural trends converge, it added.
Transaction details
Falcon said it has entered into a definitive agreement to acquire 100% of the Area-51 property. Consideration for the property and data consists of US$10,000 in cash payable within the following 30 days upon closing of the transaction as well as the issue of 200,000 shares and 200,000 warrants.
The warrants issuance will be set at a 25% premium to market based on WAP (weight average price). The property is subject to a 1% NSR, and Falcon said it has the right to purchase the 1% for its 100% control and interest in the project for a one-time payment of US$1.2 million.
Falcon's flagship project, the Central Canada Gold Mine, is approximately 20 kilometres (km) southeast of Agnico Eagle's Hammond Reef Gold Deposit which has currently estimated 3.32 million ounces of gold mineral reserves, and 2.3 million ounces of measured and indicated mineral resources.
The Hammond Reef gold property lies on the Hammond shear zone, which is a northeast-trending splay off 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 multiple additional projects: The Viernes Gold/Silver/Copper project in Antofagasta Chile, 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 British Columbia, the Spitfire-Sunny Boy, Gaspard Gold claims; and most recently the Great Burnt, Hope Brook, and Baie Verte acquisitions adjacent to First Mining, Matador, Benton-Sokoman's joint venture, and Marvel Discovery in Central Newfoundland.
Contact the author at stephen.gunnion@proactiveinvestors.com