Falcon Gold Corp (TSX-V:FG, OTC:FGLDF) announced it has acquired, via staking, additional ground west of Valentine Lake in Newfoundland.
This new land position called Victoria West (the property) consists of 166 claims (4,150 hectares) and is contiguous to Marvel Discovery Corp, Benton Resources, Buchans Minerals Corp., and a significant land package staked by renowned prospector Shawn Ryan.
The property lies 40 kilometers (km) west of the Valentine gold deposit and 65km southwest of the town of Buchans. The Valentine gold deposit, which hosts 6.8 million ounces (Moz) of gold (Au), is now under development.
READ: Falcon Gold acquires Valentine Gold South project
Falcon said it has immediate plans to commence high-resolution magnetic surveys upon approval of exploration permits.
In early 2011, Buchans Minerals and Benton Resources completed prospecting activities in the immediate area that identified abundant mineralized quartz vein material containing trace to several percent sulphides.
Falcon noted that analytical results of the grab samples assayed between 1.65 to 18.24 grams per ton (g/t) Au and between 5.4 to 87.1 g/t silver (Ag) in subcrop samples. Grab samples from outcrop assayed up to 8.52 g/t Au and 30.7 g/t Ag. Of considerable interest within this immediate area are float samples consisting of angular boulders which assayed up to 106.4 g/t Au, and 364.3 g/t Ag.
"Falcon couldn't ignore the high-grade Au-Ag results from the Buchans-Benton prospecting program in 2011 and is intrigued by the fact that the high-grade gold sample lies within 2.4km of our claim boundary and the source of this boulder does not appear to have ever been found,” said Falcon CEO Karim Rayani in a statement.
“Our in-house studies suggest that within this immediate area, structural controls on mineralization are poorly understood and we aim to fly the entire area with high-resolution magnetic surveys to be followed up with detailed litho-structural and target generation studies."
Falcon said the largest known gold deposit in Newfoundland occurs at Valentine Lake (Marathon Gold Corp) in the footwall of the Victoria Lake Shear Zone. To date, Marathon Gold has discovered five deposits along a 20km trend and together these represent the largest undeveloped resources in Atlantic Canada with reserves and resources of 6.8 Moz. Au. Also notable within the area is the Matador Mining Cape Ray deposit which hosts 837,000 oz of Au.
Recent structural interpretations of regional-scale geophysical surveys led Falcon to the staking of this land package due to numerous interpreted oblique trends and tertiary splay zones -- which are considered highly prospective for gold mineralization.
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