Falcon Gold Corp (TSX-V:FG, OTC:FGLDF) announced it has mobilized ground crews to its Gander North project for its first exploration program on the Newfoundland-based property.
Exploration will consist of baseline prospecting, soil sampling, and trenching to vector future drill targets.
Falcon has received its initial permits, it told shareholders in a statement.
READ: Falcon Gold completes option and work requirements to earn 100% of Central Canada project in Ontario; says near-term focus is on Central Newfoundland project portfolio
Gander North is a 10,150-hectare property around 25 kilometres east of New Found Gold’s Queensway project. The claims are contiguous to the Gander Gold project, which was staked by famed prospector Shawn Ryan and recently spun out of Sassy Resources (CSE:SASY, OTCQB:SSYRF) Inc.
Falcon said that recent exploration by Gander Gold on its Gander North project have returned “spectacular results” from soil geochemistry sampling surveys, including 1,432 parts per billion gold in northeast-trending zones.
“The Gander project is a contender, being perfectly situated on trend in the heart of the action,” Falcon CEO Karim Rayani said in a statement.
“The recent soil sampling released by Sassy and world-renowned prospector Shawn Ryan is further validation our land positions are in highly prospective terrains; our interpretations show a high probability of continuation of a structural system runs through our ground.”
Update on proposed Latamark spinout
The company also updated shareholders on its planned spinout of its Latin American subsidiary Latamark Resources, with the news that it has now finalized terms for a shareholder approval vote expected in August 2022. The spinout will include the Esperanza gold-silver-copper mineral concessions located in La Rioja Province, Argentina, and the Viernes gold-silver-copper project in Antofagasta, Chile.
Falcon said its shareholders will likely receive one common share of Latamark for every 5.8 common shares of Falcon Gold held as of the effective date of the arrangement. No Falcon Gold options, or warrants will entitle the holders to receive any shares or other convertible securities of Latamark, except to the extent such holders exercise such options or warrants to acquire common shares of Falcon Gold prior to the effective date of the arrangement.
Vancouver-based Falcon's flagship project, the Central Canada gold mine, is approximately 20km 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 company holds nine additional projects.
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