Falcon Signs MOU to Acquire Viernes Project Next to Yamana’s El-Peñon Gold/Silver Deposit in Chile

Rhea-AI Summary

Falcon Gold Corp (FGLDF) has signed a Memo of Understanding (MOU) to acquire the Viernes Project located in Northern Chile, covering 3,300 Ha. The project is near major mining operations, including Yamana Gold's El-Peon Mine, which produces 160,000 ounces of gold annually. The Viernes Project presents opportunities for exploring epithermal gold and porphyry copper mineralization. Historically, the region has produced significant copper, gold, and silver, enhancing its prospectivity. This acquisition is a significant strategic move for Falcon in a highly competitive mining area.

Positive

• Acquisition of the Viernes Project increases access to prospective epithermal gold and porphyry copper resources.
• The project is strategically located adjacent to major mines, enhancing potential operational synergies.
• Historically, the region has produced substantial quantities of copper, gold, and silver, indicating high mineral potential.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / October 20, 2021 / FALCON GOLD CORP. (TSXV:FG)(FSE:3FA)(OTCQB:FGLDF); ("Falcon" or the "Company") is very pleased to announce the company has signed a Memo of Understanding (MOU) to acquire the Viernes project located 122 km SE of Antofagasta City in Northern Chile. The claims encompass 13 claim blocks covering 3,300 Ha. The west portion of the project offers prospectivity for epithermal gold veins as evidenced by outcrops of the Chile-Alemania Paleocene volcano-stratigraphic sequence, which is the same host rock at the El-Peñon Gold Mine owned by Yamana Gold. Additionally, large Eocene Monzodiorite rocks are also highly prospective for porphyry gold-copper mineralization.

"The Viernes Project has the makings of a contender in a world class district, not only is it adjacent to majors such as Yamana's El-Peñon Gold-Silver mine, which produces 160,000 ounces of Gold per year and 5,000,000 million ounces of silver. It's also just 30kms from the Escondida porphyry Copper-Gold-Moly cluster, the largest copper producing hub in the world operated by BHP and Rio Tinto. It's a very competitive area as it's controlled by the majors and almost impossible to get ground of this size," states Karim Rayani Chief Executive Officer.

The Viernes project is located at moderate elevation of approx. 2000 meters above sea-level and is 5 km east of Yamana Gold's highly profitable El-Peñon low sulfidation gold and silver mine, and 35kms southeast of the world class Zaldivar - Escondida Copper Hub. The project has year-round access via paved and gravel roads from the mining capital of Chile, known as Region II, Antofagasta.

The Viernes project presents Falcon a tremendous opportunity to explore for potential bonanza -grade with epithermal low to intermediate sulfidation gold-silver, and porphyry copper-moly mineralization in one of south Americas greatest mineral endowed Paleocene-Eocene belts. The project is located within a world class cluster with extensive development by Yamana, BHP-Rio Tinto, Antofagasta Minerals amongst others. The property is highly prospective and is adjacent to the epithermal vein-hosted Gold-Silver producing El-Peñon mine in which the property may host similar geochemical and structural features.

Since the 1990's this area has produced 30.6 million tons of copper - 57 times the annual Canadian production, 9.2 million Ounces of Gold - 1.5 Times the Canadian production, 129.3 million ounces of Silver - 8.6 times the Canadian annual silver production and has generated multiple discoveries.

Qualified Person

Dr. Daniel Rubiolo, P. Geo., who is a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects has reviewed and approved the technical content of this news release.

About Falcon Gold Corp.

Falcon is a Canadian mineral exploration company focused on generating, acquiring, and exploring opportunities in the Americas. Falcon's flagship project, the Central Canada Gold Mine, is approximately 20 km southeast of Agnico Eagle's Hammond Reef Gold Deposit which has currently estimated 3.32 million ounces of gold (123.5 million tonnes grading 0.84 g/t gold) mineral reserves, and 2.3 million ounces of measured and indicated mineral resources (133.4 million tonnes grading 0.54 g/t gold). 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 8 additional projects. The Esperanza Gold/Silver/Copper mineral concessions located in La Riojo Province, Argentina. 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 B.C., the Spitfire-Sunny Boy, Gaspard Gold claims; and most recently the Great Burnt, Hope Brook, and Baie Verte acquisitions adjacent to First Mining, Benton-Sokoman's JV, and Marvel Discovery in Central Newfoundland.

CONTACT INFORMATION:

Falcon Gold Corp.
"Karim Rayani"
Karim Rayani
Chief Executive Officer, Director
Telephone: (604) 716-0551
Email: info@falcongold.ca

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.

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.

SOURCE: Falcon Gold Corp.

View source version on accesswire.com:
https://www.accesswire.com/668825/Falcon-Signs-MOU-to-Acquire-Viernes-Project-Next-to-Yamanas-El-Peon-GoldSilver-Deposit-in-Chile

FAQ

What is the significance of Falcon Gold's acquisition of the Viernes Project?

The acquisition positions Falcon Gold to explore high-potential mineral resources near major mining operations in Northern Chile.

Where is the Viernes Project located?

The Viernes Project is located 122 km southeast of Antofagasta City in Northern Chile, close to notable mining operations.

What are the expected benefits of the Viernes Project acquisition for Falcon Gold?

The acquisition is expected to enhance Falcon's exploration capabilities in a mineral-rich area with significant historical production.

What mineral resources could be found in the Viernes Project?

The project has potential for epithermal gold-silver and porphyry copper mineralization.

What is the current gold production capacity of Yamana's El-Peon Mine?

Yamana's El-Peon Mine produces approximately 160,000 ounces of gold per year.