Falcon Signs MOU with Vatic Ventures to Option Wabunk Bay Cobalt Claims, Northwestern Ontario
Vancouver, British Columbia--(Newsfile Corp. - June 28, 2018) - FALCON GOLD CORP. (TSXV: FG) ("Falcon" or the "Company") reports it has signed a Memorandum of Understanding (the "MOU") with Vatic Ventures Corp. ("Vatic") whereby Vatic may acquire a 60% interest in the Wabunk Bay cobalt claims. The Wabunk Bay property consists of two (cobalt, copper, nickel & PGE's) mining claims in Earngey Township in the Red Lake District of northwestern Ontario. The claims comprise 19 claim units and cover an area of approximately 304 hectares.
Stephen Wilkinson, Falcon's CEO stated; "This is an exciting development for Falcon. The agreement with Vatic secures significant funding for advancing Falcon's recently acquired Wabunk Bay property and we look forward to implementing an exploration program shortly, focused on the historical cobalt occurrences."
The Wabunk Bay Property
The Property is located immediately east of the past producing Uchi gold mine in northwestern Ontario.
Highlights of exploration work on the Wabunk Bay Cobalt Claims are summarised as follows:
1956 - Campbell Island Mines and Exploration Ltd. completed geophysical surveys, trenching and 6 diamond-drill holes, totalling 390 feet. Surface samples assayed 0.33% Co over 1.5m and 0.15% Co over 7.6m.
1957 - The Ontario Department of Mines reported in its Mineral Resource Circular No. 2 ("MRC 2"):
"The main showing lies in the north-south portion of the gabbro, strikes near north, and is about 300 feet long; although mineralization is not continuous, it is found along a length of 600 feet. The average width of mineralization cut in five drill holes is 21 feet. An 18-foot chip sample ran 1.08 percent copper and 0.40 percent nickel. A 22-foot chip sample ran 0.44 percent copper and 0.12 percent nickel. The best 25 feet of drill core assayed 0.62 percent copper and 0.04 percent nickel. Core assays gave as high as 0.03 percent cobalt."
2003 - Jilbey Gold Exploration Ltd. carried out a large regional recognisance program in the greenstone belts south and east of Red Lake, Ontario. The Wabunk Bay area was covered by an airborne geophysical survey that identified two magnetic and conductive anomalies.
To earn its 60% interest, Vatic has agreed to issue to Falcon a total of 400,000 units composed of common shares and warrants, to make cash payments to Falcon totalling $100,000 and to expend $750,000 (within one year) to explore the property. In addition, Vatic will pay the underlying property payments totaling $200,000. Subsequent to earning its 60% interest, Vatic will have the right to acquire Falcon's remaining 40% interest for shares based upon an independent valuation. The agreement is subject to TSX Venture Exchange approval.
Mr. Bob Chataway, P. Geo. has reviewed and approved the technical content of this news release. Mr. Chataway is a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.
About Falcon Gold Corp.
Falcon is a Canadian mineral exploration company focused on acquiring, exploring, and advancing quality mineral projects in the Americas. Its projects include, the Central Canada Cobalt and Gold Project in N.W. Ontario and the Burton gold property located northwest of Sudbury, Ontario. The Company is listed on the TSX Venture exchange with the trading symbol: "FG". For information on the Company, please visit our website: www.falcongold.ca.
Falcon Gold Corp.
CEO & Director
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 those currently anticipated in such statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.